(TIỂU LUẬN) TRADE POLICY IN JAPAN AND ITS IMPACT ON TRADE RELATION WITH VIETNAM

FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS -*** MID-TERM ASSIGNMENT Major: International Business Economics Subject: International Trade Policy TRADE POLICY IN JAPAN AND ITS IMPACT ON TRADE RELATION WITH VIETNAM Supervisor: Class: Ho Chi Minh, November 2021 FOREIGN TRADE UNIVERSITY HO CHI MINH CITY CAMPUS -*** MID-TERM ASSIGNMENT Major: International Business Economics Subject: International Trade Policy TRADE POLICY IN JAPAN AND ITS IMPACT ON TRADE RELATION WITH VIETNAM Supervisor: PhD Trần Nguyên Chất Class: K59CLC5 Group Trần Lưu Thanh Thảo Trần Anh Thư Hoàng Lê Phương Thảo Phan Quang Thịnh Phạm Đăng Thái Student ID 2011156096 2011156099 2011155544 2011155571 2011156094 Ho Chi Minh, November 2021 i TABLE OF CONTENT TABLE OF CONTENT i LIST OF ABBREVIATION WORDS iv LIST OF FIGURES vi LIST OF TABLES .vii MAIN CONTENT Chapter INTRODUCTION .1 1.1 The rationale of the Research 1.2 Aims and Objectives .2 1.2.1 Aims of the research 1.2.2 Objectives of the research 1.3 Research scope and objects 1.3.1 Research scope 1.3.2 Research objects 1.4 Research questions 1.5 Research methods 1.6 Structure of the research Chapter OVERVIEW OF JAPAN'S CURRENT ECONOMY AND ITS ECONOMIC RELATION WITH VIETNAM 2.1 Fundamentals of trade policy .5 2.1.1 Definition and objectives of trade policy 2.1.2 Two tendencies of trade policy 2.1.3 Some main instruments of international trade policy 2.2 Brief introduction to Japan ii 2.3 Overview of trade relation between Vietnam and Japan Chapter ANALYSIS ON TRADE POLICY IN JAPAN 3.1 Overall history of trade policy in Japan from 1945 to 2010 .9 3.2 Analysis on trade policy in Japan from 2011 to 2020 .10 3.2.1 Tariff 10 3.2.2 Non-tariff measures (NTMs) 13 3.2.2.1 Data on non-tariff measures in Japan .13 3.2.2.2 Details about Japan’s NTMs in each category 16 3.2.3 Comparison with WTO regulations 18 3.3 Impact of trade policy in Japan on trade relations with Vietnam 21 3.3.1 Impact of Japan’s tariff on Vietnam’s export 22 3.3.2 Impact of Japan’s non-tariff measures on Vietnam’s export .23 Chapter FINDINDS and CONCLUSIONS 26 4.1 Opportunities and threats for Vietnam .26 4.1.1 Opportunities 26 4.1.2 Threats .27 4.2 Implications for Vietnamese government and firms 27 REFERENCES 30 APPENDIX 33 iii LIST OF ABBREVIATION WORDS Abbreviation AHS Definition Effectively Applied Tariff AJFTA Asean-Japan Free Trade Area ASEAN Association of Southeast Asian Nations BND Bound Tariff CKD Completely Knocked Down CPTPP Comprehensive and Progressive Agreement for Trans-Pacific Partnership EPA Economic Partnership Agreement EU European Union FSCJ Food Safety Commission of Japan FTA Free Trade Agreement GDP Gross Domestic Product GNP Gross National Product GSP Generalized System of Preferences IMF International Monetary Fund IWC International Whaling Commission JAS Japanese Agricultural Standards JIS Japan Industrial Certification LDC Least Developing Country LTD Limited company MFN Most-Favored Nation Tariff iv MOIT Ministry of Industry and Trade MRL Maximum residue level NTM Non-tariff measure ODA Official Development Assistance RCEP Regional Comprehensive Economic Partnership SPS Sanitary and phytosanitary TBT Technical Barriers to Trade UNCTAD United Nations Conference on Trade and Development VJEPA Vietnam-Japan Economic Partnership Agreement WITS World Integrated Trade Solution WTO World Trade Organization v LIST OF FIGURES Figure 3.1: Weighted Average Tariffs In Japan From 2011 To 2020 .10 Figure 3.2: Simple Average Most-Favored Nation Tariff And Effectively Applied Tariff 11 Figure 3.3: Weighted Average Most-Favored Nation Tariff, By Sector 12 Figure 3.4: Japan’s NTMs indicators in importation .13 Figure 3.5: No of NTMs available in Japan 14 Figure 3.6: Indicators of NTMs by type in Japan 15 vi LIST OF TABLES Table 3.1: Tariffs on Major Vietnamese Exports to Japan in 2020 22 Table 3.2: Vietnam’s exportation and Japan’s importation of some products in HS digits in 2019 and 2020 23 Table 3.3: Vietnam’s exportation and Japan’s importation of rice in 2019 and 2020 24 Table 3.4: No of NTMs and No of SPS measures in rice’s products 24 MAIN CONTENT Chapter 1.1 INTRODUCTION The rationale of the Research As a developed country with plenty of economic achievements and breakthrough transformations, Japan has always been standing out as one of the top economies in the world With free trade and multilateral institutions, Japan is the third-largest economy according to nominal GDP and fourth-largest by purchasing power parity nowadays The Japanese government recognized that trading was a potential factor and an important issue for economic development The relationship between Japan and Vietnam has been thriving since 1992, in a huge number of fields and an astonishing number of milestones, ranging from economics, politics, cultural exchanges With the unstopping collaborative activities, the strong relationship was shaped between Japan and Vietnam with knowledge, cultural understanding, and support in every field Japan is the leading economic partner of Vietnam Thanks to foreign direct investment from Japan, Vietnam had the base, budget, and foundation to develop the economy from infrastructures, capital, and so on Moreover, Japan is the largest ODA donor and the fourth-largest trading partner of Vietnam According to Japan, Vietnam is the most ideal and attractive destination for investment in ASEAN with plenty of potentials and opportunities The relationship between these two countries is continuously being strengthened and recognized In this COVID pandemic, the Japanese government put a large amount of effort to support and assist Vietnam to overcome the alarming and difficult situation, such as one million doses of the COVID vaccine With the support from Japan, Vietnam has a lot of potential to develop its economy, however, to strengthen the long-lasting relationship with Japan, understanding the trade policy guarantees the relationship between the two countries and maximization of 70 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girls' briefs and panties of man-made fibres, knitted or 610822 crocheted Disinfectants (excluding goods 380894 of subheading 3808.50) 73 Plywood consisting solely of sheets of wood 35 mm or for film in the flat 900659 (excluding instant print 76 Tools for drilling, interchangeable (excluding rock-drilling 820750 or earth-boring tools and tools 19798 117381 27668 19568 345838 83776 19532 309584 125681 19120 770296 129642 18966 18089 1242897 620469 textile materials 18842 217443 311882 821210 18780 122677 139364 18404 17421 71957 18333 32736 18333 18172 221466 87077 18138 137585 21368 17997 218150 448349 Dextrins and other modified starches, e.g pregelatinised or esterified 350510 starches Women's or girls' blouses, shirts and shirt-blouses of cotton (excluding 620630 knitted or crocheted Parts suitable for use solely or principally with spark-ignition internal 840991 combustion piston Frozen fillets of catfish "Pangasius spp., Silurus spp., Clarias 030462 spp., Ictalurus spp." Women's 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adhesives put up for retail sale as glues 350610 or adhesives, Overcoats, car cloaks, anoraks, incl coats, capes, ski jackets, 610130 windcheaters, wind-jackets Women's or girls' overcoats, raincoats, car coats, capes, cloaks and 620211 similar articles, of wool Parts and accessories for instruments and apparatus for measuring 903090 or checking electrical quantities Reception television, colour, apparatus whether or for not Titanium oxides Objective lenses for cameras, projectors or photographic enlargers or 900211 reducers 82 Fuel, lubricating or cooling medium pumps for internal combustion 841330 piston engine Tubular metal needles 11020 261644 49601 11007 176436 27378 10926 217827 53410 10912 157730 323042 10813 2229177 15525 10678 30794 31136 10471 45266 19975 10341 413416 108693 10245 184794 20442 10243 37552 53454 10235 26066 12621 and needles for sutures, used in medical, 901832 surgical, dental or veterinary Plates, sheets, film, foil and strip, of non-cellular polymers of 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chapter Flours, meals and pellets of fish or crustaceans, molluscs or other aquatic 230120 invertebrates, 10126 289838 171115 850440 10073 2225486 1185593 10070 294721 153775 Static converters Tableware and kitchenware, of 392410 plastics 84 ... commitment in resolving mutual grievances 3.3 Impact of trade policy in Japan on trade relations with Vietnam To begin with, Japanese relations have always had a significant influence on Vietnam Free trade. .. opportunities, and implications for Vietnam on the way to building and strengthening the long-lasting and sustainable relationship with Japan At the same time, strongly understanding the trade policy. .. and implications 5 Chapter OVERVIEW OF JAPAN'' S CURRENT ECONOMY AND ITS ECONOMIC RELATION WITH VIETNAM 2.1 Fundamentals of trade policy 2.1.1 Definition and objectives of trade policy Trade policy