Tokyo trade talks start this week

The January 16-18 Tokyo talks, led by deputy minister Phan The Rue, follow pre-negotiation talks held in Hanoi last December, and it is hoped the agreement will be concluded by the end of this year.
The talks are viewed as important because an Economic Partnership Agreement (EPA) is distinct from a Free Trade Agreement (FTA) in that it has greater scope with issues related to investment, trade, services and intellectual property rights.
“Japan is a very supportive partner of Vietnam in terms of trade. Its agricultural and industrial products are entirely different to those produced by Vietnam. On this basis, an EPA will help accelerate trade between the two countries in a way that supplying each other with goods that they do not have,” said a senior official from the Ministry of Trade (MoT).
Trade between Vietnam and Japan under the framework of the EPA would bring Vietnam greater opportunities to buy cheaper industrial and hi-tech products from Japan, the official explained.
With a comprehensive focus on the liberalisation of trade in goods and service, effective protection of intellectual property rights, improvement of the business environment, and securing of stable supplies of natural resources, energy and food, the EPA is believed to offer a big contribution to Vietnam’s business environment and make it much more attractive to foreign investors.
“Vietnam will become more competitive in terms of investment compared to other ASEAN countries with a reduction in tariffs on parts and components,” according to Japan Embassy’s charge´s d’affaires de interim Daisuke Matsunaga.
Currently, tariffs on parts and components in Vietnam are still considerably higher than those in Thailand or China, where Japanese companies are locating lots of their manufacturing plants.
“The EPA is going to benefit both parties when Japanese firms will also have opportunities to enjoy low tariffs on parts and components, hence cutting their production costs,” Matsunaga said.
He added stricter implementation of intellectual property rights would also increase Vietnam’s managing capability over the issue, which would encourage foreign companies to do business here.
Vietnam’s great efforts to liberalise trade and investment and its WTO membership being effective from January 11 are said to be a favourable condition that have allowed EPA talks with Japan to begin.
“Being both WTO members with convergent trade and investment policies will help both sides find the same ‘language’ to talk about a long-time partnership,” the MoT’s senior official said.






No. 796/January 15-21, 2007