ABSTRACT The VietnamJapan Economic Partnership Agreement (VJEPA) is Vietnams first bilateral FTA. VJEPA has brought Vietnam a lot of preferential tariffs and nontariff, especially in the field of seafood export. By collecting data and analyzing the actual situation, the article has given an overview of the VJEPA agreement, thereby realizing that Vietnam still faces many difficulties in taking advantage of the incentives on tariffs brought about by the agreement. On that basis, some recommendations are made for seafood exporters. Keywords: VJEPA, FTA, seafood export, Japan LITERATURE REVIEW There have been many studies on the impact of AJCEP on the Vietnamese economy. Mai (2014) used secondary data from 1988 to 2013, the author utilized the Engle–Granger cointegration approach to measure the longterm relationship and the error correction model (ECM) to measure the shortterm relationship between variables. The results show that the VJEPA has no impact on fish exports to Japan. However, this method is not optimal and the articles data only stops in 2013, so the results are still limited. The same result with Nguyen (2012) when applying the gravity method. The article did not find any link between VJEPA and seafood export. In contrast to the above studies, Nguyen and Huynh (2020) apply the dynamic general equilibrium model (DCGE) with the data of Vietnams Social Accounting Matrix in 2012 (VSAM2012) to simulate the impact of import tax reduction. exports according to the VJEPA route to the Vietnamese economy. The simulation results show a positive impact of VJEPA on imports and export in the long run. However, the article only studies the impact of tariffs, not mentioning nontariff commitments.
OVERVIEW OF THE VIETNAM - JAPAN ECONOMIC PARTNERSHIP AGREEMENT (VJEPA) AND SOME RECOMMENDATIONS FOR VIETNAMESE SEAFOOD EXPORTERS Vũ Huyền Phương Giảng viên Viện Kinh tế Kinh doanh quốc tế Trường Đại học Ngoại thương, Hà Nội, Việt Nam ABSTRACT The Vietnam-Japan Economic Partnership Agreement (VJEPA) is Vietnam's first bilateral FTA VJEPA has brought Vietnam a lot of preferential tariffs and non-tariff, especially in the field of seafood export By collecting data and analyzing the actual situation, the article has given an overview of the VJEPA agreement, thereby realizing that Vietnam still faces many difficulties in taking advantage of the incentives on tariffs brought about by the agreement On that basis, some recommendations are made for seafood exporters Keywords: VJEPA, FTA, seafood export, Japan LITERATURE REVIEW There have been many studies on the impact of AJCEP on the Vietnamese economy Mai (2014) used secondary data from 1988 to 2013, the author utilized the Engle–Granger cointegration approach to measure the long-term relationship and the error correction model (ECM) to measure the short-term relationship between variables The results show that the VJEPA has no impact on fish exports to Japan However, this method is not optimal and the article's data only stops in 2013, so the results are still limited The same result with Nguyen (2012) when applying the gravity method The article did not find any link between VJEPA and seafood export 1 In contrast to the above studies, Nguyen and Huynh (2020) apply the dynamic general equilibrium model (DCGE) with the data of Vietnam's Social Accounting Matrix in 2012 (VSAM2012) to simulate the impact of import tax reduction exports according to the VJEPA route to the Vietnamese economy The simulation results show a positive impact of VJEPA on imports and export in the long run However, the article only studies the impact of tariffs, not mentioning non-tariff commitments Nguyen, et al (2012), and Pham and Nguyen (2021) take a different approach to this topic, focusing on analyzing non-tariff barriers such as standards on residues of veterinary drugs, drugs plant protection, antibiotics, and infection levels These studies have all pointed out the limitations and solutions for Vietnam to make good use of VJEPA However, there is still no research on the full impact of the agreement, including tariff and non-tariff commitment, on seafood exports to Japan This is the reason for writers to write this essay An overview of the VJEPA 1.1 Introduction of VJEPA The Agreement between Vietnam and Japan for an Economic Partnership (VJEPA) was signed on December 25th, 2008 and came into force on October 1st, 2009 This is the very first bilateral FTA of Vietnam, in which both Vietnam and Japan give the other more preferences than that agreed under the Agreement for Comprehensive Economic Partnership ASEAN – Japan (AJCEP) However, VJEPA does not replace AJCEP These two FTAs coexist and enterprises can choose to use the more favorable one 1.2 Main contents of VJEPA VJEPA includes an Agreement between Japan and Vietnam for an Economic Partnership (Main Agreement) and an Implementing Agreement This structure allows the flexible adjustments of the implementation process without affecting the content of the commitments in the Main Agreement VJEPA includes 14 chapters, 129 articles and seven annexes, covering a wide range of the issues concerning economic integration, especially trade liberalization between the two countries Vietnam committed to the reduction/elimination of 8873 tariff lines to the end of the roadmap (2026), while Japan committed the reduction/elimination of 6302 tariff lines Vietnam and Japan’s commitment in VJEPA regarding seafood export 2.1 Commitment on Tariff Japan committed to eliminate tariffs for 96.45% of the total tariff lines for Vietnamese goods by the end of the schedule (in 2026), in which: For seafood: Commitment to cut the tariff immediately (in 2009) for 19% of fishery tax lines, after 15 years, it will reduce a total of 57% of tariff line for fishery (188/330 lines); 33% of tariff line to fishery (59/330 lines) apply import quotas The tax rates that Japan applies to Vietnamese seafood are divided into groups: Group 1: is a group of products entitled to 0% tax (including 64/330 items) as soon as the Agreement comes into effect (accounting for 71% of Vietnam's seafood exports to Japan) Out of these 64 tax lines, except for 28 items with MFN tax rate of 0% and items with GSP tax rate of 0%, 28 tax lines are essentially 0% However, these 28 tax lines on seafood products mean great trade significance for seafood exporters of Vietnam The seafood export value of these 28 products accounted for 71% of Vietnam's exports to Japan, most notably black tiger shrimp, processed shrimp, crabs and crabs No HS2007 Description MFN 030613000 Frozen shrimps and black tiger shrimp 160520029 Prepared or preserved pangasius shrimp and prawns 5.3% 160520011 Pandan shrimp and prawns (simple cooked with water or 4.8% GSP 1% 3.2% brine, cooled or frozen after boiling with water or pickle) 030614030 Frozen Crab (Portunus spp.) 4% 030623200 Dried, salted or brine Shrimps 5% and Prawns 4% 030490030 Frozen filet of other fish 030375000 Frozen horn sharks and other sharks (except filet and other 2% 2.5% fish meat, liver, and roe) 030619010 Ika sea shrimp (Ebi) including fine powder, coarse 2% powder, and granules, is suitable for human consumption 030614090 Frozen other crab species, except king crab (Paralithodes 4% spp.), snow crab (chionoecetes spp.), crab (Portunus spp.) and horsehair crab 10 160520019 Shrimps and Prawns (smoked in brine, cooled or dried 4.8% after being boiled with water or soaked in brine) 11 030379031 Frozen seabeam (except for filet and other fish meat, liver 2% and roe) 12 030379039 Frozen Barracouta fish (Sphyraenidae and Gempylidae) 2% and South African mink and other fish meat, liver, and roe 13 030621100 Rock lobster and other marine shrimp, raw, fresh or 1% chilled 14 030265000 Fresh or chilled horn shark and other sharks (except for 2.5% filet and other fish meat, liver, and roe) 15 030269021 Fresh or chilled sea bream (except for filet and other fish 2% meat , liver, and roe) 16 030269029 Fresh or chilled Barracouta fish (Sphyraenidae and 2% Gempylidae) and South African mink fish (except for filet and other fish meat, liver, and roe) 17 030379040 Frozen Shishamo fish (except for filet and other fish meat, 2.8% 3.2% liver, and roe) 18 030410220 Frozen liver and roe (except for Nishin and Tara) 2% 19 030410230 Frozen liver and roe (except for Nishin and Tara) 2.5% 20 030490040 Frozen filet and other fish 2.5% 21 030490050 Frozen filet and other fish 2.8% 22 030611000 Frozen rock lobster and other marine shrimps (Palinurus 1% spp., Panulirus spp., Jasus spp.) 23 030612000 Frozen lobster (Homarus spp.) 1% 24 030622100 Raw, fresh or chilled lobster (Homarus spp.) 1% 25 030623111 Raw shrimps and prawns, used as fish breeding or release 1% bred in captivity into the ocean 26 030623119 Raw shrimps and prawns 1% 27 030623190 Fresh or chilled shrimps and prawns 1% 28 030629110 Raw, fresh or chilled Ika sea shrimps (Ebi) 2% Figure 2.1.1 28 fishery tax lines with high benefits and 0% import tax as soon as the Agreement comes into force Source: “Những điều doanh nghiệp cần biết hiệp định đối tác kinh tế VN-NB” Group 2: is a group of items with a 3-year tax reduction roadmap, with popular tax lines at 3.5 - 7.2% No HS2007 Description MFN 030379099 Other frozen fish (except for filet and other fish meat, 3.5% liver, and roe) GSP 030410299 Frozen iver and roe (except for Nishin and Tara) 3.5% 030420099 Fresh or chilled other fish meat, except for filet 3.5% 030490099 Frozen filet of other fish 3.5% 160530020 Prepared or preserved lobster, other than smoked, boiled 5% with water or in brine, chilled, frozen, salted, or dried after boiling with water or in brine 160540011 Others (smoked, boiled with water or brine, cooled, 4.8% 3.2% frozen, salted, or dried after boiling with water or in brine) 160540012 Other types of fish, prepared or preserved 160590294 Prepared or preserved molluscs and other aquatic 5% 9.6% 7.2% invertebrates, smoked-free Figure 2.1.2 fishery tax lines with tax elimination roadmap in years Source: “Những điều doanh nghiệp cần biết hiệp định đối tác kinh tế VN-NB” Group 3: will have a tax reduction roadmap in the next 5-10 years No HS2007 Description MFN 030549090 Other types of fish, including filet and smoked 030559090 Other types of fish, dried, smokeless drying 030614010 Frozen shrimps and prawns 4% 030759100 Frozen octopus 7% 030799141 Frozen clams, including fine powder, coarse powder, GSP 10% 10.5% 5% 3.5% and granules, suitable for human food 160419090 Other types of fish, prepared or preserved, in whole or 9.6% 7.2% sliced not minced 160420012 Nishin roe, not canned, processed or preserved 11% 160420019 Prepared or preserved roe 6.4% 160420020 Other types of fish, prepared or preserved, not in whole 9.6% 7.2% or sliced 10 160510029 Prepared or preserved crab 9.6% 7.2% 11 160590295 Smoked-free, prepared or preserved scallops 9.6% 7.2% 12 160411010 Salmon (except for canned) prepared or preserved in 9.6% 7.2% 6.4% 4.8% 9.6% 7.2% whole or sliced, not minced 13 160430090 Caviar and caviar substitutes, made from roe, processed or preserved 14 160590299 Prepared or preserved molluscs and other aquatic invertebrates, smoked-free Figure 2.1.3 14 fishery tax lines with export potential and have tax elimination roadmap in 5-10 years Source: “Những điều doanh nghiệp cần biết hiệp định đối tác kinh tế VN-NB” Vietnam commits to eliminate tariffs for Japanese goods according to the following schedule: - From 2018, 41.78% of tariff lines in the Tariff will be eliminated - By 2026 (the last year of the tax reduction schedule), eliminate 90.64% of the tax lines 2.2 Commitment on Non-Tariff Measures 2.2.1 Technical measures Japan's TBT, SPS are set very strictly, the standards are higher than all other countries in the world, and banned chemicals and antibiotics are frequently added Over the time, Japan has added 100 more banned substances and restricted the use of seafood products, causing many difficulties for Vietnamese exporters Residues of plant protection drug Trifluralin: In 2009, the US and EU warned that Vietnamese pangasius shipments were contaminated with Trifluralin, by early 2010 Japan warned 02 shipments of Vietnamese pangasius contaminated with Trifluralin exceeding the permissible threshold 10(ng/g) In the middle of September 2010, Japan again warned Vietnamese shrimp to be infected with Trifluralin According to seafood export statistics of the Agro-Forestry-Fisheries Quality Management Department in 2010, we found 18 samples: 11 samples of pangasius, 04 samples of tilapia, 02 samples of black tiger shrimp, and 01 sample of snakehead fish Trifluralin antibiotics exceeded the permitted level for export Causes of Trifluralin contamination in aquatic products: breeding stock, use of fungicides, improvement of ponds; However, Vietnamese seafood products contaminated with the above antibiotic are from the field, with very high levels of Trifluralin, which farmers mix into seed rice to inhibit the germination of weeds, then the water in the field is discharged and led into the rice field In ponds, cross-contamination is difficult to control, and fragmented farming near fields makes it much more difficult to control pond water quality Quinolone antibiotic residues: Quinolone is one of five groups of antibiotics restricted for use in food, the allowable level of total Enro/Cipro in most import markets such as the US, EU, Canada, is 50 (ng/g) Particularly, the Japanese market is more demanding, Japan raised the allowable level of this group to 10(ng/g), five times higher than the common level of other countries In 2010, Japan warned 28/678 shrimp shipments imported into Japan with levels of Quinolone antibiotics exceeding the allowable limit, in the first months of 2011 alone, Japan warned 81/286 shrimp shipments imported into this country However, they are all below the threshold of 50 (ng/g) This is a very bad situation for Vietnam's key export products to the Japanese market The position of Vietnamese shrimp has gradually lost its dominance after these two incidents 8 2.2.2 Non-Technical measures The import of seafood products into Japan is subject to the following import restriction regulations: import quotas; import approval; import confirmation (before or at the time of customs clearance) Tariff Rate Quotas (TRQs) Japan maintains a tariff-quota system that charges a lower tax rate (primary tax rate) on goods imported in certain quantities, but a higher tax rate (secondary tax rate) on products of which quantities exceed the quantity This system protects domestic producers of similar goods but also benefits consumers with the lowest possible tariffs Tariff quota volumes for each allocation can be applied in one of two ways (in the order in which the request was received or by prior allocations) Japan usually uses the pre-allocation method The tariff-rate quota system does not restrict direct imports, as imports can be made without a tariff-quota certificate, as long as a high rate of duty is paid According to the provisions of the Foreign Exchange and Foreign Trade Law, seafood products: herring (nishin), cod (tara), yellowtail, mackerel, sardines, horse mackerel, scallops, scallop eyes, squid (live, fresh, chilled, frozen, fileted or dried) is considered a product subject to import quotas, and importers must obtain import permits and approvals from the Ministry of Economic Affairs , Japan Trade and Industry (METI) Import Approval Applications for import certification of entities and organizations shall be submitted to METI (through the Department of Economic Cooperation and Trade and the Department of Trade Control) After receiving the officially stamped application back, the importer can begin the import clearance process Regarding pre-import certification: In order to be able to import tuna (excluding Albacore, bluefin, southern bluefin and bigeye), some documents are required to be submitted to apply for import certification After receiving the confirmation notice issued by METI, the exporting unit can carry out the import procedures as prescribed For imports of fresh or chilled bluefin tuna and swordfish (excluding those listed above), an import approval certificate must be submitted to the customs office in order to receive import confirmation export 9 Regarding the import certification at the time of customs clearance: According to the provisions of the Law on Customs Business, the import declaration must be made by the importer himself or authorized for individuals with expertise in customs practice registration (including customs brokerage) In order for a consignment from abroad to be imported into Japan, a customs declaration must be submitted to the customs office in charge of the unloading area Goods that want to be cleared must first go through inspection and quarantine procedures, then the importer must pay enough customs fees as well as domestic consumption taxes to receive an import permit In addition, Vietnam is committed to taking measures to combat illegal, unreported and unregulated (IUU) fishing such as supporting compliance monitoring systems, including the implementation of measures to prevent Vietnamese-flagged fishing vessels from engaging in IUU fishing activities and to deal with the transfer of marine products that have been caught by IUU fishing Vietnam's anti-IUU fishing problem is being implemented through main tools: (1) Equipment, information to observe fishing vessels; (2) Fisheries control forces, specialized fisheries inspectors, marine police, border guards and navy; (3) Management of fishing ports, anchorage areas to avoid storms In addition, foreign fishing vessels operating in Vietnam's waters may also be controlled by supervisors appointed by Vietnamese state agencies on board VJEPA and Vietnam’s export of seafood products to Japan 3.1 Overview 3.1.1 Overview of Vietnam’s seafood export industry Vietnam's seafood export industry has grown strongly in recent years Seafood products for export in Vietnam are increasingly diversified Seafood products such as shrimp, tuna, squid, octopus, bivalve molluscs, crabs and surimi currently have increasing export sales (VASEP) Over the past years, Vietnamese seafood products have been exported to more than 150 markets around the world In which, Japan, the US, ASEAN, Korea, EU and China are the main seafood import markets of Vietnam, always accounting for over 80% of the total seafood export volume 10 Figure 3.1 Vietnam's Seafood Export Turnover from 2018 to 2022 Source: VASEP Looking back at Vietnam's seafood exports from 2018 to 2022, it has witnessed significant growth Seafood export turnover is estimated at about billion USD, up 8.4% in 2018 and reached over US$8.6 billion in 2019, down 2.3% compared to 2018 After a continuous decline in the first half of 2020 due to the impact of the Covid-19 epidemic, Vietnam's seafood exports began to recover thanks to a steady increase in shrimp exports and positive signs of seafood products (VASEP) As the COVID-19 situation was under control, Seafood export turnover in 2021 has reached USD 8.89 billion, up 5.7% compared to 2020 In 2022, Vietnam reached an important milestone as the seafood export industry reached a record number of USD 11 billion for the first time, up 23.8% over the same period in 2021, the highest level ever, making Vietnam one of the three largest seafood exporters in the world 3.1.2 Vietnam’s seafood export to Japan It was evident that Vietnam's seafood exports were a promising business with an upward trend in 2021-2022 According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the US, China, EU, Japan, and South Korea are the largest export markets for Vietnamese seafood, accounting for nearly 80% of the total seafood export turnover In which, export turnover to Japan is estimated at 1.75 billion USD, ranking 3th in the seafood export market 11 Figure 3.2 Top Seafood Important Markets of Vietnam in 2022 Source: “10 thị trường xuất lớn năm 2022” - Thuy san Viet Nam Japan is a market with great import and consumption demand for seafood In recent years, Vietnam's seafood exports to Japan have experienced rapid and stable growth Figure 3.3 Vietnam's Seafood Export Turnover to Japan from 2018 to 2022 Source: VASEP According to the Import and Export Department (Ministry of Industry and Trade), in August 2022, Vietnam's seafood export turnover to Japan reached 173 million USD According to statistics of the General Department of Customs, in October 2022, Japan surpassed the US to 12 become Vietnam's largest seafood export market, reaching US $160.6 million, up 34.1% over the same period last year With the spearhead of Vietnam's seafood export being shrimp, Japan is also a big market and always has stability determined In 2022, Vietnam's shrimp exports to Japan reached 671 million USD, up 16% compared to 2021 Except for mackerel, other aquatic products such as octopus and tuna all increased sharply in export volume according to statistics in 2022 (VASEP) 3.2 Impact of VJEPA on Vietnam’s seafood exports to Japan The VJEPA (Vietnam-Japan Economic Partnership Agreement) was signed on December 25, 2008, and went into effect on October 1, 2009, which has created more or less positive changes for Vietnam's export industry to "the land of the rising sun and cherry blossoms”, especially the seafood industry Figure 3.2.1: Vietnam’s seafood exports to Japan 2007-2022 Source: VASEP and Industry and Trade Information Center (compiled according to data of the General Department of Vietnam Customs) In comparison with AJCEP, VJEPA offers more incentives, specifically VJEPA's tax commitments are higher From 2005 to 2008, Vietnam seafood exports to Japan ranged from 13 $745.9 million to $828 million After VJEPA took effect at the end of 2009, between 2010 and 2019, Vietnam seafood exports to Japan rose from $894 million to $1.460 billion Therefore, VJEPA has had a particular effect on Vietnam ‘s seafood exports over the past time, this is also a remarkable effort of Vietnamese businesses when we have to strictly comply with fence requirements technique Thanks to the signing of the VJEPA agreement, many seafood products of Vietnam have benefited from preferential tax rates of 0% or tax reductions, increasing Vietnam's total seafood export turnover to Japan from about $900 million (2010) to $1.6 billion (2022) However, the year-over-year growth rate of turnover is not particularly outstanding due to many shortcomings For example, the limits on food safety rules, labeling regulations, and import procedures under VJEPA are too harsh for Vietnamese firms in the early stages of implementing VJEPA In 2010, after the signing of the VJEPA agreement, although seafood export turnover to Japan accounted for a large proportion of Vietnam's export structure, it only accounted for a small percentage of Japan's seafood import value Compared with Vietnam's seafood production and export potential, such a small market share does not represent Vietnam's true position and is not commensurate with the traditional trade relationship between the two countries However, in 2011, Vietnam was in the top 10 seafood exporters to Japan and broke out to rise to the top position in 2017, accounting for 7%, of which Vietnam together with India and Indonesia are the largest suppliers of shrimps/prawns Then, in the period of 2019 up to now, despite being affected by the Covid-19 pandemic, Vietnam still maintains its position in the Japanese market Specifically, in 2021, the market share of Vietnam's seafood industry will account for 6.7% of the Japanese market 14 Figure 3.2.2: Market share of Vietnam's seafood export industry to Japan in 2011-2021 Source: Japan Fisheries Agency During the COVID-19 pandemic in 2020-2021, Vietnamese seafood exports to Japan were impacted, with disruptions in shipping and logistics early in the pandemic causing a slight drop in exports However, exports to Japan gradually picked up later in the year In January, 2023, Japan became Vietnam's largest seafood export market, reaching $91.19 million The proportion of exports to the Japanese market increased from 17.6% of the total seafood export value of the country in January 2022 to 19.9% in January 2023 According to experts, the increase of seafood exports is due to benefits from newgeneration free trade agreements such as CPTPP (2019) and RCEP (2020) In particular, the CPTPP's market openness is greater in terms of tariff lines, so the average tax rate towards the conclusion of the roadmap will be substantially lower than that of VJEPA The fisheries tax lines that were not committed to deletion in the VJEPA are included in the CPTPP obligations and will be eliminated in the sixth, eleventh, or sixteenth year, depending on the commodity The level of market openness of RCEP is not higher than that of VJEPA; however, its advantage comes in the loosening of origin regulations, which increases the possibility of benefiting from preferential tariffs for goods For example, according to VJEPA seafood products must be of pure Vietnamese or Japanese origin, yet RCEP enables the import of breeders raised in Vietnam for export while still benefiting from preferential tariffs It can obviously be seen that they are having a more visible impact on Vietnam’s seafood exports in comparison with VJEPA lately 15 Opportunities and Challenges 4.1 Opportunities Japan is a potential seafood import market of Vietnam, thanks to VJEPA, Vietnamese seafood exporters have more opportunities to enter this market The most obvious is the opportunity from tax exemptions in both fresh and processed seafood Under VJEPA, both products are committed to reducing taxes immediately upon signing the agreement or on a to 10-year roadmap For instance, certain types of fresh shrimp and prawns from Vietnam have experienced tariff reductions from 8.5% in 2010 to 0% by 2020 (Ministry of Industry and Trade, Vietnam) This led to an increase in competitiveness for Vietnamese seafood products in Japan This is evident in the growth of Vietnam's market share for processed seafood, which increased from 5.6% in 2010 to 9.3% in 2020 (JETRO, 2021) Not only helping to facilitate the export of popular products like shrimp, squid to Japan, VJEPA has also opened up many potentials for other products such as yellowtail, sea bream, tuna, crab, and lobster Tariff reductions happened on many high-value seafood species such as, processed crab meat was reduced from 5% to 0%, and tariffs on live or fresh lobsters were reduced from 7.2% to 0% According to the United Nations Industrial Development Organization (UNIDO), these are all high-demand products in Japan and Vietnam's aquaculture sector has the potential to produce those 4.2 Challenges The biggest challenge for Vietnam is how to overcome the strict barriers in the Japanese market In order to penetrate the Japanese market, Vietnam's export products must meet the standards set by the importer Demand from Japanese consumers is very high For agricultural, forestry and fishery products, the issue of ensuring food safety and hygiene standards is currently the biggest obstacle for Vietnamese goods Checking and controlling residues of antibiotics and pesticides in raw materials for processing agricultural products, and chemicals contaminated in the process of aquaculture and seafood are beyond the reach of export processing enterprises On the contrary, failing to overcome strict regulations on food hygiene and safety, Vietnamese agricultural and aquatic products entering Japan cannot take advantage of tax exemptions and reductions 16 The last challenge to mention is the awareness and level and capacity of enterprises exporting to the Japanese market When not fully aware of the opportunities VJEPA brings to them, businesses may not be able to take advantage of tax advantages For example, the Japanese market is a very strict market in terms of origin standards of goods in general and seafood products in particular Therefore, when making goods for export to Japan, enterprises if they not pay attention to the C/O certificate of origin as soon as they receive processing materials, because if it takes a long time, the supplier will find a way to refuse re-issued and the inevitable consequence is that when the goods are brought to Japan, it will be difficult to declare the origin to put them on the market Recommendation In order for seafood exports from Vietnam to Japan to continue to grow stronger and more vibrant, economists and policymakers of Vietnam need to well implement the following basic solutions: 5.1 Optimizing the opportunities: 5.1.1 For the Vietnamese government: Improving the efficiency of implementing the VJEPA Agreement Promoting propaganda, and raising awareness about the Agreement to the business community so that they can understand the commitments on trade in goods, trade in services, investment, and tax incentives In addition, providing information and specific instructions on how to benefit from the VJEPA for seafood exports to Japan to improve enterprise competitiveness and assist enterprises in engaging in the global manufacturing and value chains 5.1.2 For the Vietnamese seafood firms: Diversify and improve the quality of exports Seafood enterprises need to promote exports to Japan of seafood products that Vietnam has advantages and enjoys many incentives under the VJEPA Diversify and improve the quality of exports in order to increase the competitiveness of Vietnamese goods in the Japanese market In order to take advantage of the incentives in the VJEPA, it is necessary to increase the competitiveness of Vietnamese seafood products To this, businesses need to diversify, improve quality and ensure food hygiene and safety for seafood products Enterprises must raise 17 responsibility for technical standards, food hygiene and safety when exporting to the Japanese market 5.2 Minimizing the difficulties 5.2.1 For the Vietnamese government Strengthening trade promotion activities with the Japanese market Promote the "early harvest" of the implementation of the committed roadmaps on bilateral and multilateral trade and investment liberalization, especially the VJEPA; Supporting businesses in participating in trade fairs and exhibitions in Japan; In-depth research into Japan's economic and trade policies and their technical barriers to Vietnamese exports to help businesses grasp, abide by and not violate regulations on quality standards issued by the Japanese Ministry of Health, Labor and Welfare Improve capacity for animal and plant quarantine Upgrading the existing inspection centers to better meet the inspection of export goods; Build inspection centers in Vietnam with the support of Japan and issue certificates of qualified products for export to the Japanese market This center is the product of intergovernmental cooperation and experts from both Vietnam and Japan Some recommendations to the Ministry of Industry and Trade Continue to negotiate with the Japanese side on a number of issues related to the implementation of the VJEPA Agreement to further concretize (Japan supports cooperation in the development of supporting industries, cooperation in strengthening quarantine capacity) , cooperation in the field of standardization, ); Be proactive and active in coordinating with the Japanese side to basically handle the issue of animal and plant quarantine and food hygiene and safety, creating conditions for a number of Vietnamese agricultural products to be imported into the country Japan in the near future 5.2.2 For the Vietnamese seafood firms Investing in technology innovation Invest in technological innovation to improve the competitiveness of exports to Japan In general, many of Vietnam's exports to this market are still limited in competitiveness due to quality, price and product design In order to improve the competitiveness of exports, many 18 different measures must be used, but the most basic one must have an investment strategy and technological innovation to improve quality and reduce product costs Advanced production technology will help enterprises improve the quality and reduce the cost of export products Therefore, improving the competitiveness of exports in the world market in general, and in the Japanese market in particular Actively apply quality management systems according to international standards and meet health and environmental protection requirements Actively deploying and applying quality management systems according to international standards and meeting health and environmental protection requirements The biggest obstacle at present is that Vietnamese goods have not met Japan's strict quality testing and food safety and hygiene requirements To overcome this situation, businesses need to proactively apply quality management systems according to international standards and meet health and environmental protection requirements Enterprises need to implement quality management according to the standards and regulations set forth by Japan Enterprises should develop and apply international quality management systems ISO 9000, HACCP, ISO 14000 and SA 8000 as a foundation for overcoming Japan's technical and commercial barriers Promote export promotion activities to the Japanese market To step up export promotion activities to the Japanese market Develop marketing strategy and promote export of goods to Japan Improve marketing capacity, actively carry out export promotion activities to this market; Actively looking for partners and offers through participation in fairs, exhibitions and seminars held in Vietnam or Japan, through the Vietnam Trade Office in Japan and through representatives of the Vietnam Trade Organization Japan Trade Promotion (JETRO) in Vietnam REFERENCES Wtocenter.vn Vietnam Japan https://wtocenter.vn/fta/187-vietnam japan-vjepa/1 (VJEP) [online] Available at: Nguyen, Anh Thu (2014) Assessing impact of AFTA and VJEPA [online] ResearchGate Available at: https://www.researchgate.net/publication/344650360_Assessing_impact_of_AFTA_and_VJEPA Vntr.moit.gov.vn Agreement Between Japan And The Socialist Republic Of Viet Nam For An Economic Partnership (VJEPA) [online] Available at: https://vntr.moit.gov.vn/fta/19/2 Phạm, Thị Thùy Linh and Nguyễn, Mạnh Cường (2021) Hệ thống rào cản kỹ thuật thương mại thủy sản thị trường Nhật Bản - Các giải pháp ứng phó Việt Nam [online] Available at: https://vjol.info.vn/index.php/most/article/view/63719/53632 Thuvien.hlu.edu.vn (2014) Những điều doanh nghiệp cần biết Hiệp định đối 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