Viet Nam’s exports to Japan increase rapidly in Q1
Viet Nam’s exports to Japan increase rapidly in Q1
Elimination of many tariff lines for goods under the CPTPP has helped Viet Nam’s exports to Japan increase sharply in the first quarter of this year, according to the General Department of Customs.
Viet Nam's export value to Japan in the first quarter surged 6.7 per cent year on year to US$4.6 billion, the general department said. Viet Nam became one of three markets gaining an export value in the billions of US dollars to Japan, after the US and China.
In March 2019 alone, the export value to Japan reached $1.7 billion, a sharp increase of 62.3 per cent month on month and a surge of 2.7 per cent year on year.
The strong growth in Viet Nam’s export value to Japan was attributed to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). According to this agreement, Japan for the first time has pledged to completely eliminate tariffs for the majority of Viet Nam's agricultural and seafood products exported to this market.
That meant Japan immediately abolished 86 per cent of tariff lines, equivalent to 93.6 per cent of Viet Nam's export value to Japan, and then this figure will increase to 90 per cent of tariff lines within five years.
On the other hand, the Viet Nam-Japan and ASEAN-Japan free trade agreements have created advantages in tariffs for some of Viet Nam's seafood products exported to Japan, reported vneconomy.vn.
About 62.5 per cent of Viet Nam’s total goods items exported to Japan in the first quarter gained strong growth compared to the same period last year, according to the general department.
The major export products to Japan included textiles (export value of about $900 million), means of transport and spare parts ($630 million), machinery and equipment ($450 million) and seafood products ($306 million).
Especially, the fertiliser exports to this market had a sudden growth in the first quarter of 2019 to 8,126 tonnes, earning $3.7 million. The exports rose up by five times in volume and about 11 times in value year on year.
In addition, Viet Nam saw strong growth in exports of some goods to Japan in the first quarter, including chemical products (up 70 per cent), animal feed and raw materials (up 56.8 per cent), ore and minerals (up 52 per cent), all kinds of steel (up 49 per cent) and plastic materials (up 43 per cent).
Meanwhile, Japan sharply reduced imports of cassava and cassava products from Viet Nam, with a reduction of 99.6 per cent in volume and 98.5 per cent in value over the same period, despite the average export price of cassava surging by 3.3 times to $886 per tonne.
In 2018, Viet Nam's goods export value to Japan reached more than $18.8 billion. Textiles and garments accounted for the largest proportion with over 20 per cent of the total export value. Meanwhile, seafood, furniture and footwear respectively hold 7.4 per cent, 6.1 per cent and 4.5 per cent.
