The market is demanding but has great potential
According to Mr. Tran Phu Lu - Director of the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), in recent years, the Vietnam - Japan economic relationship has developed strongly, becoming a pillar in bilateral relations.
Vietnam is currently Japan's 7th largest export partner and 9th largest importator. On the other hand, Japan is a potential export market for Vietnam, benefiting from four free trade agreements (VJEPA, AJCEP, CPTPP and RCEP).
In 2024, the total bilateral import-export turnover will reach 46.23 billion USD, an increase of 2.78% compared to 2023. Of which, Vietnam exports about 24.61 billion USD to Japan with key items including textiles, means of transport, machinery, equipment, wood, plastic, etc. Imports from Japan reached 21.62 billion USD, mainly electronics, machinery, steel and components.
In Ho Chi Minh City - the most dynamic economic center in the country, trade relations with Japan are enhanced through promotional activities, connecting businesses and organizing economic and cultural exchange programs.
According to Ms. Quyen Thi Thuy Ha - Head of the Vietnamese Trading Branch in Osaka, Japan is a demanding market with strict quality requirements, but great potential. Vietnam currently accounts for only about 3.3% of Japan's import market share, with a lot of room for development.
Japanese consumers prefer products with clear origins, high durability, and environmental friendliness. Some industries are assessed to have great prospects including clean food, cosmetics, products for the elderly, consumer technology and especially textiles - footwear and agricultural products.
Sustainable cooperation and legal barriers to note
Mr. Shiotani Yuichiro - General Director of AEON TOPVALU Vietnam - emphasized that AEON sets a goal of sustainable development, prioritizing internationally certified products such as MSC, ASC, FSC, and fair trade. AEON has implemented many social projects in Vietnam, typically supporting coffee farmers in Son La. Enterprises that want to become official partners of AEON need to meet the requirements of production capacity, experience, financial transparency and comply with the Code of Conduct (CoC).
In terms of legality, Mr. Oguma Toshihiro - JCCH Supervisor and General Director of Mizuho Ho Chi Minh City Branch - noted that Vietnamese enterprises need to clearly understand the "Foreign Trade and Foreign Trade Law" of Japan and the regulations of OFAC (USA) due to the impact on international transactions. All transactions over 30 million yen must be fully reported. In particular, USD-related payments are under the control of the US financial system. Violating regulations can lead to asset freezes.
Therefore, Vietnamese enterprises need to proactively research the market, ensure transparent origin, improve product quality and especially comply with international law. This is a key condition to reach the Japanese market sustainably.
