Trade Treaty with Japan to Cut Export Tax Fees
Apr. 17 – The Vietnam-Japan Economic Partnership Agreement will remove import tariffs on 2,586 Vietnamese goods by the middle of the year.
The deal translates to major export opportunities for both countries. By 2019, import tariffs will be cut from 6,302 Vietnamese goods and 94.5 percent of Vietnam’s exports and 87.6 percent of Japan’s exports should be able to benefit from tax-free access to both countries.
In addition, the average tariff on Vietnamese goods would decrease from 5.05 percent to 2.8 percent as Japanese goods are will also have dropped rates from 14 percent to 7 percent.
It is forecast that Vietnam will decrease tariffs on 8,873 Japanese items by 2025. The most significant part of the deal will allow the Japanese market to open up to the Vietnamese farm produce and will lower tariffs to zero on majority of the products including shrimp, crabs, honey, durian, to name a few.
Vietnam will be given a quota for 100 tons of honey annually while increasing it by 50 tons every year as well. Gradually given in a few years’ time pepper, sweet corn, cuttlefish, octopus, coffee and tea will become tax-free.