Automotive component production line at Japanese fully-invested Nissin Manufacturing factory in northern Hoa Binh province. (Photo: VNA)
Many Japanese firms in Vietnam have failed to make the most of the tariff preferences under Vietnam-Japan free trade agreement, said Atsuko Fukagawa, deputy managing director of the Japan External Trade Organisation (JETRO) office in Ho Chi Minh City.
She made the remark at a workshop on the Vietnam-Japan Free Trade Agreement (FTA) and Economic Partnership Agreement (EPA) in Ho Chi Minh City on October 21.
A JETRO survey of Japanese enterprises in Asia and Oceania last year indicated that the FTA utilization rate among those operating in Vietnam, at 36 percent, is relatively lower than that of their peers in the region, for example, Indonesia (58.2 percent), Thailand (53.7 percent), and Malaysia (48.9 percent).
At the event, experts updated attendees on the FTA and EPA and clarified related rules of origin (ROO) requirements in the hope of helping Vietnamese and Japanese businesses take full advantage of the two agreements.
Nguyen Quan Phuc from the Import-Export Department under the Ministry of Industry and Trade, stressed the significance of the ROO as it helps determine imported goods that qualify for preferential tariffs.
Firms that meet the ROO requirements will benefit from the preferential tariffs and be able to expand their businesses further, he added.
Japanese companies in Vietnam contributed about 60 percent of the Southeast Asian nation’s exports to Japan and 20 percent of that to the ASEAN region.
Many Vietnamese businesses are also looking for opportunity to access the Japanese market.-VNA
