Japan is the largest trading partner of Vietnam in CPTTP

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The chart of import and export turnover between Vietnam and CPTTP members, the unit “US $ million”. Chart by: T.B

Many “US$ billion” markets

For many years, Japan has been the most important traditional trading partner of Vietnam. Currently, Japan ranks the fourth among more than 200 countries and territories that have trade relations with Vietnam (followed by China, South Korea and the US).

The latest information from the General Department of Vietnam Customs shows that as of the end of February 2018, total Vietnam’s import and export turnover to Japan reached nearly VND 2.7 billion, increasing by 14.3% compared to the same period in 2017.

Vietnam’s largest exports to Japan in the previous two months were textiles with an export turnover of US$ 537 million; Means of transport of US$ 365.2 million; machinery and equipment of nearly US$ 259 million. Notably, the major exports to Japan gained quite a high growth compared to the same period in 2017.

For imports, as of the end of February 2018, Vietnam imported from Japan an import turnover of nearly US$ 2.705 billion, increasing by 17% compared to the two months of 2017. Hence, the country was in a slight trade deficit (about US$ 5 million) with Japan.

The largest imports from Japan were machinery and equipment with a turnover of over US$ 675 million, followed by computers, electronic products and parts with over US$ 392 million, iron and steel of over US$ 203 million.

Apart from Japan, Vietnam's major trading partners with a bilateral trade turnover worth of US $ billion per year are CPTPP members including Singapore, Malaysia, Australia, Canada. Meanwhile, Vietnam’s trade relations with members such as Brunei, Peru and Chile is still restricted , especially Brunei, import and export turnover between Vietnam and Brunei was nearly US$ 100 million in 2017.

Vietnam’s exports to CPTPP members’ markets are means of transport, machinery, phones, computers, textiles and fishery products.

Creating growth rate for Vietnam

Right after CPTPP being signed, the World Bank issued a report on economic benefits and reform promotion in Vietnam

According to the report, for Vietnam, multilateral trade agreements such as the CPTPP will create motivation for growth model based on Vietnam’s investment and exports.

“Even if based on modest assumptions, the CPTPP is expected to contribute to increasing by 1.1% for GDP by 2030. With the assumptions of productivity increase, CPTPP will contribute to increasing more than 3.5% for GDP”- Mr. Ousmane Dione, Country Director of World Bank for Vietnam said.

The WB also provided an optimistic assessment that the agreement was expected to benefit all income groups.

In addition, the World Bank predicted that CPTPP would help to boost foreign investment and increase service sector and labor productivity in Vietnam. Thereby, domestic private enterprises would have more opportunities to participate in the global value chain and encourage the development of small and medium- sized sectors.

Vietnam, Japan enhance economic and trade links Prime Minister Nguyen Xuan Phuc and Prime Minister Shinzo Abe on June 5 attended the Vietnam Investment ...

“The new agreement will bring direct benefits to Vietnam thanks to trade liberalization and strengthening of market access. The most important thing is to promote and speed up the domestic reform process in many different areas,” Mr. Sebastian Eckardt, the World Bank’s Lead Economist for Vietnam said.

In addition, CPTPP is able to promote reforms in many areas such as competitiveness, management, services (finance, telecommunications, and temporary participation of servic suppliers), Customs, e-commerce, the environment, Government procurement, intellectual property, investment, labor standards, legislation, market access, rules of origin, non-tariff measures, trade remedies, etc.