Promoting exports to Northeast AsiaUpdate: 9/9/2014
(VEN) - Thanks to favorable legal framework from free trade agreements (FTAs) with Japan and the Republic of Korea, Vietnamese businesses have taken advantage of opportunities to promote exports to the Northeast Asia region and increased their market share.
An increase in export turnover
According to the Ministry of Industry and Trade’s Asia-Pacific Market Department, Japan and the Republic of Korea remained leading trading partners with great potential for Vietnam’s exports. In the past three years, Vietnam’s export turnover growth to Japan and the Republic of Korea reached over 27 and 40 percent per year. In the first six months of this year, Vietnam’s export turnover to the two countries reached an estimated US$10.2 billion, an increase of 9.8 percent compared to the same period in 2013.
In terms of commodities, electronic products, machinery and equipment with high technological content have gradually occupied important positions. According to statistics, in the first six months of this year, machinery and equipment export turnover to Japan and the Republic of Korea reached US$680 million and US$137.8 million, an increase of 18.2 percent and 37.3 percent compared to the same period last year, respectively.
Garment and textile, leather and footwear and seafood exports recorded high growth to the two countries in the first six months of this year. Export turnover of garment and textile, leather and footwear and seafood to the Republic of Korea and Japan reached an estimated US$746 million, US$149 million and US$282.7 million; US$1.16 billion, US$256 million and US$512 million, respectively.
According to the Ministry of Industry and Trade’s Asia-Pacific Market Department, despite an increase in export turnover, market share of Vietnamese goods in the two countries remained low.
The Vietnamese government is making greater efforts to support businesses in expanding the market through promoting the negotiation process of the Vietnam-Korea Free Trade Agreement and the Trans-Pacific Partnership (TPP) Agreement.
Vietnamese businesses should effectively exploit preferential tariffs thanks to the Vietnam-Japan Economic Partnership Agreement (VJEPA), the Agreement on Comprehensive Economic Partnership among Japan and Member States of the Association of Southeast Asian Nations (AJCEP) and the ASEAN-Korea Free Trade Agreement (AKFTA).
To deal with non-tariff measures, businesses should deepen their cooperation with Japanese and RoK importers as they understand the rules and requirements related to imported goods. Japanese and RoK companies will also be benefited through the introduction of various types of Vietnamese goods to consumers.
In terms of the Republic of Korea, quarantine and technical standards remain major barriers to Vietnam’s exports. In the process of negotiating Vietnam-Korea Free Trade Agreement (VKFTA), Vietnam is making greater efforts towards the recognition of test results and assessment in each country, contributing to accelerating the clearance time and saving costs for exporters.
Vietnam hopes that the Republic of Korea will accelerate the process of import risk assessment for Vietnam’s agricultural products./.
By Hung Cuong - http://ven.vn/