Exports to Japan, Canada Rocket thanks to CPTPP

2:19:48 PM | 4/18/2019

Viet Nam’s exports to Japan and Canada in the first two months of 2019 witnessed respective year-on-year increases of 11.2% and 36.7%, according to the Viet Nam Customs.

Viet Nam earned US$4.62 billion from exporting to Japan in the first quarter of 2019, up 6.68% against the previous year.

In March 2019, Viet Nam’s export value to Japan was estimated at US$1.68 billion, a sharply increase of 62.25% against the previous month and up 2.71% compared to the previous year.

Key export items of Viet Nam included garment (US$900 million), vehicles and tools (US$630 million), machines and equipment (US$450 million) and aquatic products (US$306 million).

Other export items also saw high growths such as chemical products (up 70%), animal feed and material (up 56.8%), ore and minerals (up 52%), iron and steels (up 49%) and plastics (up 43%).

The rise in Viet Nam’s exports to Japan in the first quarter of 2019 is mainly attributed to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). Accordingly, Japan made its first commitment to eliminating import tariff on most of Viet Nam’s agricultural and aquatic products.

Otherwise, thanks to the two Free Trade Agreements (FTA) between Viet Nam and Japan and ASEAN and Japan, some Viet Nam’s aquatic products exported to Japan are also eliminated from tariff barriers.

Earlier in 2018, Viet Nam gained more than US$18.8 billion from exporting to Japan, of which garment accounts for 20%, followed by aquatic products, wood and footwear with 7.4%, 6.1% and 4.5%, respectively.

Meanwhile, Canada has been evaluated as one of the markets bringing most added values for Viet Nam’s export activities in the CPTPP.

Viet Nam-Canada trade value increased three times from US$1.14 billion in 2010 to US$3.85 billion in 2018.

In 2018, Viet Nam enjoyed the trade surplus of US$2.14 billion.

In the first two months of 2019, the nation earned US$506 million from exporting to Canada, a year-on-year increase of 36.6%.

Garments and footwear are among sectors enjoying benefits from the CPTPP as the import tariff on garments and footwear reduced from 16-17% and 18% to 0% within the next four years and 7-11 years, respectively.

Source: VGP