Envoy talks potential growth of VN exports to Japan

Envoy talks potential growth of VN exports to Japan

Nguyen Trung Dung, Commercial Counselor of the Vietnamese Embassy in Japan, talked with Tuoi Tre about the expected growth of Vietnamese goods shipped to the East Asian country.

The interview was conducted as Japanese Prime Minister Shinzo Abe is scheduled to visit Vietnam to boost the strategic partnership between the two countries.

Japan was the second-largest exporting market for Vietnam last year, with exports growing 21 percent, a figure that is expected to soar this year, the envoy said.

2012 was a tough year for Japan, with the consequences of the devastating earthquake and ensuing tsunami of May, 2011 still being felt, but the economic ties between Vietnam and Japan saw positive signs and strong growth.

Japan topped the country’s list of foreign direct investment, while bilateral trade turnover reached US$25 billion, up from $21 billion in 2011, an 18 percent increase, Dung said.

“Vietnam’s exports to Japan rose 21 percent to $13 billion, maintaining its trade surplus with the country,” he said.

Aside from the traditional exporting commodities such as textiles and garments, seafood, furniture, footwear, and handicrafts, Vietnamese exporters have also shipped machinery, electronics, rice, and several agricultural products to Japan, Dung said, in explaining the export growth.

The two countries’ bilateral trade relationship is expected to increase by 20 percent in 2013, with total turnover forecast to surpass the $30 billion mark.

More room for growth

Vietnam, however, could do better at several exporting commodities, the commercial counselor added.

Imports from Vietnam only account for 1.8 percent of Japan’s total import turnover, and the Southeast Asia country still has a number of potential commodities that can boost exports to Japan, he said.

“The export turnover to Japan can be increased further if Vietnam were to ship frozen shrimp, processed seafood, and fruit to the country,” he said.

Meanwhile, last year Vietnam shipped only $20 million worth of rice to Japan, which was only 4 percent of the country’s total rice imports.

“Japan is loosening certain standards on antibiotic residues, while Vietnamese rice quality has also been much improved -- these will open the door for greater Vietnamese rice exports to Japan,” he remarked.

While the high food safety and hygiene standards proposed by Japan are considered a challenge for Vietnamese exporters, Dung said they should try to improve their quality, instead of waiting for the Japanese to loosen the norms.

“Vietnam and Japan worked together in early 2012 to set up a quality test center, which will help verify the quality of Vietnamese agricultural and seafood exports,” he said.

“This will serve as an effective model to boost Vietnamese exports of such products to Japan.”

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