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    Vietnam, Japan, VJEPA Agreement, Vietnam Textile And Garment Export Zero Tariff

    2010/9/10 15:11:00 61

    VietnamJapan

      

    Vietnam?

    The Prime Minister signed the 57/2009/QD-TTg document in April 16, 2009, approved the Vietnam - Japan economic cooperation agreement (VJEPA) and the relevant implementation agreement signed by the Vietnamese and Japanese governments in accordance with the tenth contents of the VJEPA agreement in December 25, 2008, and instructed the Vietnamese foreign ministry to announce and notify Vietnam's respective two effective dates.


    From October 1, 2009 onwards

    VJEPA

    Officially entered into force.

    In this regard, Japan's tariff on industrial products in Vietnam dropped sharply from 6.58% in 2008 to 0.95% in 2019, and will continue to be reduced to 0.4% in 2019. Among them, the 1978 tax on textile garments has been reduced from the original 7% tax rate to 0% tax rate. Footwear has also been reduced from 5%~10% to 0% tax rate. Other wooden furniture, chemicals and mechanical equipment also enjoy the same tax rate.


    After the entry into force of the VJEPA, Japan immediately deleted 784 of the 2020 tax rates on Vietnam's agricultural products (accounting for 36% of Vietnam's export to Japan's agricultural products tax). There were 14 categories of products that were cut taxes in the next 3 to 5 years, namely, monosodium glutamate, soybean paste, ginger, banana, durian and Hong Mao Dan. After 15 years, the Vietnamese coffee, tea and the import tax of processed fruits and vegetables were reduced to 0%.


    At the beginning of 2010, EIU (Economist Intelligence Unit) estimated that yen would maintain 1 yen to 180 shield against the exchange rate this year, and it would be more profitable to Vietnam. Because in 2009, there were more Japanese yen liabilities. Under the strong pressure of the yen exchange rate (by December 31, 2009, 1 JPY = 200.7 VND, and 8.51% in 2008), large exchange rate risk prevention funds must be allocated.


    However, the actual situation is not optimistic, because by September 3, 2010,

    Yen

    The exchange rate has risen again, reaching 1 yen to 225.54 plus shield level. If the situation does not improve in the following half year, the Vietnamese business will have to bear the cost of the considerable exchange rate spread.


    According to Vietnamese customs statistics, Vietnam imported about $4 billion from Japan in the first half of 2010 (31.9% growth compared with 2009), Vietnam mainly imported machinery and equipment, machine tools, machine parts and accessories (about US $1 billion 200 million), up 13.8% compared with 2009, followed by all kinds of steel (about US $521 million 700 thousand, up 75.8% from 2009); third, resin products (US $184 million 700 thousand), and 46.5% growth in 2009.

    Other import growth products include paper products 45 million US dollars (116.5% growth) and common metals 100 million US dollars (96%), accounting for 2.5% of Japan's total imports.


    During the period, the number of products imported from Japan was reduced to 331 thousand (89.6% US dollars), wood and wood products (2 million 400 thousand US dollars, 27.3%), other pport vehicles and components (54 million US dollars, 25.3%), and cars (59 million US dollars, 13.4%).

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