Presentation overview of the vjepa and some recommendations for vietnamese seafood exporters

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

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International Trade Policy

FOREIGN TRADE UNIVERSITY

Overview of the VJEPA and some

recommendations for Vietnamese seafood exporters

OUR TEAM

VIETNAM-JAPAN ECONOMIC PARTNERSHIP AGREEMENT

WHY?

GROUP 3

Come into force

01/10/2009

OVERVIEW OF VJEPA

1

OVERVIEW OF SEAFOOD EXPORT MARKET

OVERVIEW OF VJEPA

1

OVERVIEW OF SEAFOOD EXPORT MARKET

14 chapters, 129 articles, and 7 annexes.

Japan committed to the elimination of

VJEPA includes a Main Agreement and

an Implementing Agreement.

Main Contents

AJCEP: ASEAN - Japan Comprehensive Economic Partnership

SEAFOOD

OVERVIEW OF SEAFOOD EXPORT MARKET

Overview of Vietnam's Seafood Exports to Japan

Figure 2.1 Vietnam's Seafood Export Turnover from 2018 to 2022

Source: Authors

Vietnam's seafood export

industry has grown

strongly in recent years

Overview of Vietnam's Seafood Export Turnover

By the end of December

2022, Vietnam's seafood

exports reached the

target of 11 billion USD ,

up 23% compared to

2021

Export turnover of commodity groups such as pangasius, shrimp, tuna

of Vietnam all increased compared to the previous year.

Source: VASEP

Overview of Vietnam's Seafood Export Turnover

Overview of Vietnam's Seafood Exports to Japan

Figure 2.2 Top 5 Seafood Import Markets of Vietnam in 2022

Source: Authors

Export turnover to Japan is estimated at 1.75 billion USD, ranking 3rd in the seafood export market.

Figure 2.3 Vietnam's seafood export turnover to Japan 2018 - 2022

the past 5 years,

Overview of Vietnam's Seafood Exports to Japan

VIETNAM & JAPAN COMMITMENT

3

OVERVIEW OF VJEPA

1

OVERVIEW OF SEAFOOD EXPORT MARKET

3.1 COMMITMENTS 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 ).

https://vntr.moit.gov.vn/fta/19/2

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 apply import quotas (59/330 lines).

For seafood:

Japan

3.1.COMMITMENTS ON TARIFF

https://vntr.moit.gov.vn/fta/19/2

3.1.COMMITMENT ON TARIFF

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

3-year tax reduction

roadmap, with 8 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

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.

3.2.COMMITMENT ON NON-TARIFF

https://b.vjst.vn/index.php/ban_b/article/view/1098/997

Technical barriers of Japan

RECOMMENDATIONS

5

Vietnam's aquaculture sector has the

fish species that are in demand in

and tuna or crab, and lobster

Diversification of products

Source: "Vietnam's Aquaculture Sector - Prospects and Challenges", United Nations Industrial Development Organization, 2019.

The Vietnamese government has recognized

the potential of seafood exports to Japan and

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

Statistics Supporting

the Opportunity

Tariff reductions

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.

Source: Japan External Trade Organization - JETRO

The growth of Vietnam's market share for processed seafood increased from 5.6% in

2010 to 9.3% in 2020

Source: JETRO

yet met Japan's strict quality testing, food hygiene and safety requirements

Demand from Japanese consumers is

very high

Strict barriers in the Japanese market

WHILE

Source: WTO

opportunities that VJEPA brings,

take advantage of incentives

Lack of ability to take advantage of incentives

1 Optimizing the opportunities

2 Minimizing the difficulties

For the Vietnamese government For the Vietnamese seafood firms

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

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

THANK YOU FOR LISTENING !

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FOREIGN TRADE UNIVERSITY