Vietnam and Japan officially signed the Vietnam Japan Free Trade Agreement (VJFTA) on December 25, 2008. This agreement has been in effect since October 1, 2009 and has brought benefits to both countries.
The VJFTA is a comprehensive trade agreement that aims to promote economic integration and enhance trade and investment between Vietnam and Japan. Under this agreement, Vietnam and Japan have agreed to eliminate tariffs on a wide range of goods and services.
One of the main benefits of the VJFTA is that it has helped to increase Vietnam`s exports to Japan. As Japan is one of the largest economies in the world, expanding trade with Japan has been a priority for Vietnam. Since the implementation of the VJFTA, Vietnam`s exports to Japan have increased significantly. In 2018, Vietnam`s exports to Japan were valued at USD 21.2 billion, a 14.8% increase from the previous year.
The VJFTA has also helped to attract Japanese investment to Vietnam. Japan is one of the largest investors in Vietnam, with Japanese companies investing heavily in the country`s manufacturing and infrastructure sectors. The VJFTA has provided Japanese investors with greater access to the Vietnamese market, making it easier for them to do business in Vietnam.
In addition to boosting trade and investment, the VJFTA has also helped to strengthen the economic ties between Vietnam and Japan. The agreement has facilitated greater cooperation between the two countries in a range of areas, including technology, agriculture, and energy.
Overall, the Vietnam Japan Free Trade Agreement has been a success for both countries. It has helped to increase trade and investment, promote economic integration, and strengthen the economic ties between Vietnam and Japan. As both countries continue to grow and develop, the VJFTA will undoubtedly play an important role in their future economic relations.