Last updated: Friday, April 26, 2019


Vietnam, Japan Fostering PPP and Labour Productivity Cooperation

Posted: Monday, September 10, 2018

At the VCCI Headquarters in Hanoi, Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), recently hosted a meeting with Mr Nagai, Vice Ambassador of Japan to Vietnam, who is going to finish his term in mid-September 2018 and move to work at the Japanese delegation at the World Trade Organisation (WTO).

At the meeting, Dr Loc expressed his thanks to the Japanese Vice Ambassador for his close cooperation with VCCI. The guest has made important contributions to the Vietnam - Japan relationship, especially in economy, said the host.

“The Vice Ambassador was mentioned by the Prime Minister as a role model in economic diplomacy. I hope that he will promote the WTO integration, advocate the globalisation trend and cooperate with Vietnam when he is at the WTO,” Dr Loc said.

The Vietnam - Japan relationship has thrived in many aspects. Japan is a leading donor of official development assistance (ODA) for Vietnam. In the coming time, the bilateral economic cooperation will be expanded in many fields, especially public-private partnership (PPP) investment. However, the legal framework for PPP still has a lot of obstacles. “I hope that the Japanese Government will, based on its experience, make recommendations to support Vietnam in improving the legal framework for PPP investment,” he added.

At the meeting, Mr Nagai expressed his pleasure in partly contributing to the development of Vietnam - Japan relationship. In addition to PPP cooperation development, Japan will continue to cooperate with Vietnam to boost labour productivity, he added. The Japanese side has worked with the Central Economic Commission to deploy a productivity increase movement and change perceptions of productivity growth in Vietnam. He hoped that labour productivity will continue to grow.

On this occasion, on behalf of the business community of Vietnam, VCCI President Loc bestowed the Medal for “Development of Vietnamese Businesses” to Mr Nagai, the highest award for contributions to business development granted by VCCI.

According to statistics, Japan is Vietnam's fourth largest trading partner (after China, the United States and South Korea), the third largest export market (after the United States and China), and the third largest import market (after China and South Korea). In recent years, Vietnam has run a trade surplus with Japan.

In the first six months of 2018, the two-way trade value reached US$17.764 billion, up 11.6 per cent, ranking fourth after China, South Korea and the United States. Of the sum, Vietnam earned US$8.886 billion from exports to Japan, up 10.6 per cent, and it spent US$.878 billion on imports from the East Asian nation, up 12.6 per cent.

In 2017, the bilateral trade value amounted to US$33.84 billion, up 13.8 per cent year on year.

Remarkably, Vietnam always had a surplus in the trade of goods with Japan in the period of 2011 – 2014, but it turned to a deficit in the last three years (from 2015 to 2017), data of the General Department of Vietnam Customs showed.

Specifically, Vietnam's trade surplus to Japan was US$380 million in 2011, US$1.45 billion in 2012, US$2.02 billion in 2013 and US$1.77 billion in 2014. However, it took a trade deficit of US$228 million in 2015, US$393 million in 2016 and US$119 million in 2017.

The trade structures of Vietnam and Japan are clearly complementary and basically not competitive to each other.

Vietnam’s export shipments to the second largest market in Asia are mainly garments and textiles, vehicles, machinery, equipment, seafood, and woodworks.

Meanwhile, it imports machinery, equipment, computers, electronic products, iron and steel, and plastic products from Japan.

On investment, Japan invested US$6.88 billion in Vietnam in the first seven months of 2018, accounting for nearly 30 per cent of the foreign investment in Vietnam in the period and ranking first among 96 countries and territories investing in the Southeast Asian nation.

Anh Mai

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