VJEPA includes a Main Agreement and an Implementing AgreementVJEPA focuses more on economic development and has better tax commitments.Enterprises are increasingly inclined to use VJEPA instead of AJCEPVietnams seafood export industry has grown strongly in recent years Overview of Vietnams Seafood Export Turnover By the end of December 2022, Vietnams seafood exports reached the target of 1 1 billion USD, up 23% compared to 2021
FOREIGN TRADE UNIVERSITY Overview of the VJEPA and some recommendations for Vietnamese seafood exporters Group International Trade Policy OUR TEAM Lê Ý Hưng Nguyễn Đức Vinh Nguyễn Xuân Trang Hạ Nguyễn Phương Linh Lê Thị Phương Linh Đỗ Khánh Phương TABLE OF CONTENT OVERVIEW OF VJEPA OVERVIEW OF SEAFOOD EXPORT MARKET VIETNAM & JAPAN COMMITMENT OPPORTUNITIES & CHALLENGES RECOMMENDATIONS VJEPA VIETNAM-JAPAN ECONOMIC PARTNERSHIP AGREEMENT WHY? GROUP OVERVIEW OF VJEPA OVERVIEW OF SEAFOOD EXPORT MARKET VIETNAM & JAPAN COMMITMENT OPPORTUNITIES & CHALLENGES RECOMMENDATIONS The very first bilateral FTA of Vietnam Signed on 25/12/2008 Come into force 01/10/2009 OVERVIEW OF VJEPA OVERVIEW OF SEAFOOD EXPORT MARKET Main Contents VJEPA includes a Main Agreement and an Implementing Agreement 14 chapters, 129 articles, and annexes VIETNAM & JAPAN COMMITMENT OPPORTUNITIES & CHALLENGES RECOMMENDATIONS Japan committed to the elimination of 6302 tariff lines AJCEP VS VJEPA VJEPA focuses more on economic development and has better tax commitments Enterprises are increasingly inclined to use VJEPA instead of AJCEP AJCEP VJEPA AJCEP: ASEAN - Japan Comprehensive Economic Partnership Coexist SEAFOOD OVERVIEW OF VJEPA OVERVIEW OF SEAFOOD EXPORT MARKET VIETNAM & JAPAN COMMITMENT OPPORTUNITIES & CHALLENGES RECOMMENDATIONS Overview of Vietnam's Seafood Export Turnover Overview of Vietnam's Seafood Exports to Japan Overview of Vietnam's Seafood Export Turnover Vietnam's seafood export industry has grown strongly in recent years By the end of December 2022, Vietnam's seafood exports reached the target of 11 billion USD, up 23% compared to 2021 Figure 2.1 Vietnam's Seafood Export Turnover from 2018 to 2022 Source: Authors 3.1.COMMITMENT ON TARIFF JAPAN GROUP 0% tax (64/330 items ~ 71% of Vietnam's seafood exports to Japan) as soon as the Agreement comes into effect There are 28 items (~71% of export turnover) have had preferential tax since before signing the Agreement GROUP GROUP 3-year tax reduction roadmap, with popular tax lines at 3.5 - 7.2% will have a tax reduction roadmap from 5-10 years https://dangcongsan.vn/kinh-te/thuc-trang-xuat-khau-thuy-san-viet-nam-sang-nhat-ban-47867.html 3.2.COMMITMENT ON NON-TARIFF Technical barriers of Japan Japan's TBT, SPS are set very strictly, the standards are higher than all other countries in the world Japan has added 100 more banned substances and restricted the use of seafood products Many difficulties for Vietnamese exporters https://b.vjst.vn/index.php/ban_b/article/view/1098/997 OVERVIEW OF VJEPA OVERVIEW OF SEAFOOD EXPORT MARKET VIETNAM & JAPAN COMMITMENT OPPORTUNITIES & CHALLENGES RECOMMENDATIONS OPPORTUNITIES & CHALLENGES OPPORTUNITIES Diversification of products Vietnam's aquaculture sector has the potential to produce various high-value fish species that are in demand in Japan, such as yellowtail, sea bream, and tuna or crab, and lobster Source: "Vietnam's Aquaculture Sector - Prospects and Challenges", United Nations Industrial Development Organization, 2019 OPPORTUNITIES The Vietnamese government has recognized the potential of seafood exports to Japan and has provided support to the industry Funding for research and development of high-value species Trade promotion activities Source: "Japan is the largest market for Vietnamese seafood exports.”, foodnhotelhanoi.com, 2023 OPPORTUNITIES Tariff reductions Statistics Supporting the Opportunity Certain types of fresh shrimp and prawns from Vietnam have experienced tariff reductions from 8.5% in 2010 to 0% by 2020 Source: Ministry of Industry and Trade, Vietnam In 2020, Vietnam accounted for approximately 9.5% of Japan's total seafood imports, up from 6.4% in 2010 The growth of Vietnam's market share for processed seafood increased from 5.6% in 2010 to 9.3% in 2020 Source: Japan External Trade Organization - JETRO Source: JETRO CHALLENGES Strict barriers in the Japanese market Demand from Japanese consumers is very high WHILE Vietnamese seafood products have not yet met Japan's strict quality testing, food hygiene and safety requirements Source: WTO CHALLENGES Lack of ability to take advantage of incentives When not fully aware of the opportunities that VJEPA brings, businesses may not be able to take advantage of incentives OVERVIEW OF VJEPA OVERVIEW OF SEAFOOD EXPORT MARKET VIETNAM & JAPAN COMMITMENT RECOMMENDATIONS Optimizing the opportunities Minimizing the difficulties OPPORTUNITIES & CHALLENGES For the Vietnamese government For the Vietnamese seafood firms RECOMMENDATIONS Optimizing the opportunities FOR THE VIETNAMESE GOVERNMENT: Improving the efficiency of implementing the VJEPA Agreement Promoting propaganda, raising awareness to the business community (trade in goods, trade in services, investment and tax incentives) Providing information and specific instructions on how to benefit from the VJEPA Agreement Optimizing the opportunities FOR THE VIETNAMESE SEAFOOD FIRMS: Diversify and improve the quality of exports Learn more to create and diversify products Research on Japanese consumer psychology Enhance responsibility for technical standards, food hygiene and safety Minimizing the difficulties FOR THE VIETNAMESE GOVERNMENT: Strengthening trade promotion activities with the Japanese market Improve capacity for animal and plant quarantine Continuing negotiations with Japan on a number of issues related to the implementation of the VJEPA Agreement Minimizing the difficulties FOR THE VIETNAMESE SEAFOOD FIRMS Investing in technology innovation Actively apply quality management systems according to international standards Enhance export promotion activities to the Japanese market FOREIGN TRADE UNIVERSITY THANK YOU FOR LISTENING ! 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