COUNTRY BRIEFING AND BUSINESS ASSESSMENT OF JAPAN

I. OVERVIEW
a. Japan economy
-Japan is a country that is the poorest country with resources for agriculture such as farming and
animal husbandry, but the Japanese always know how to transform to bring the best results.
Achievements of Japan:
- There are many leading industries in the world such as:
+ Automotive and ship manufacturing industry
+Electronic industry, electronic equipment
+ Industrial production of consumer goods
=> GDP per capita was high at 33,400 USD / person in 2001
-Turnover in 2013 amounted to $ 679 billion, making up 14% of the country's output, especially
ranked 6th in the world.
-However, Japan's population is in the aging stage. But at the same time it also opens up
opportunities for international workers to be able to export Japanese labor.
Vietnam is a country with all the factors that Japan should cooperate with.
b. Japan and Vietnam economy
-Vietnam and Japan have a long relationship lifetime, however commercial relationships only
play strong growth after the opening of Vietnam and the association signed.
-For many years, Japan was an investment partner FDI is the largest and the source of the country
leading ODA capital for Vietnam. Two countries are members of many world economic
organizations, typically such as TPP, WTO… thanks to that trade relationship trade between the
two countries has been continuously improved.
-Trade between 2 countries is constantly increasing, Japan is Vietnam's 3rd largest export market
consumer of garment products in particular wear, footwear, aquatic products, agricultural
products of Vietnam. Japan is an import partner top of Vietnam, supply of much-needed items for
the process of industrialization and modernization implementing industry-oriented strategy
exports of Vietnam, such as machinery and equipment, means of transportation, raw materials
important for production activities domestic.
II. FACTORS AFFECTING THE PROSPECTS AND POTENTIAL OF JAPAN TO
VIETNAM
1, Communication isues:
- Japanese people communicate politely, but fussy complicated, which sometimes make it
difficult for foreigners who want to learn deeply about Japanese culture.
-Vietnamese mentality also prefers relaxation, so the working style is not agile, active, strict like
the Japanese. But Vietnam learns very quickly, so it can make up for it.
2, Specific business opportunities:
a. Economy
Vietnam's investment and business environment has been strongly improved and highly
appreciated, Vietnam's economy continues to grow through covid-19 => Vietnam is a safe
investment destination. There is a great potential for investment in production business expansion
b. Trade
The trade relationship between the two countries is complementary and fair. Despite the COVID-
19 pandemic, the value of trade between the two countries in the first 11 months of this year only
decreased slightly. Japan is a country that has the strength to provide high quality machinery and
equipment and is an export market for highly competitive products to help improve the
production capacity of Vietnam's manufacturing industries.
c. Stable health system
 Successful against covid => Covid-19 epidemic prevention, improving the health sector. Japan
has helped countries, including Vietnam, to translate Covid-19
d. Legal
Accordance with the market mechanism and conditions of Vietnam for Japan suitable with
integration commitments, international practices => Building the foundation elements of a
transparent investment and business environment and advantages, maintaining macroeconomic
stability
e. Education and training
Vietnam and Japan have signed many cooperation documents in this field => Implementing
human training programs and exchanging cultural delegations and experts.
f. Tourism
Japan is also one of the countries with the largest number of tourists to Vietnam and vice versa
=> The investment in tourism development is open and full of potentials for both countries.
3, Supply chain management
-Japan is rebuilding the supply chain and Vietnam is one of the ideal locations for it.
-President Kitaoka Shinichi said that the supply chain facing the need to be restructured due to
geopolitical changes is a good opportunity for further development of Vietnam. The Chairman
also said he would cooperate on maritime security to ensure free navigation of ships and further
strengthen cooperation with ASEAN countries, including cooperation in human resource
development.
4, Business and trading patterns
-More than 1,000 Japanese businesses seek investment opportunities in Vietnam
-Japan is the second country in terms of FDI in Vietnam, with a total registered capital of over 60
billion USD
-Vietnam's business and investment environment is improving strongly, ranking 70/190 countries
on investment advantages.
-JETRO's survey also showed that over 63% of Japanese enterprises doing business in Vietnam
wish to expand business investment in the near future, the highest in ASEAN region. Vietnam
also showed itself to be the first country to see the advantage of supply diversification.
-Vietnam and Japan also signed an agreement to avoid double taxation, investment protection,
and many other agreements to ensure the interests of businesses from both countries in
investment and trade.
5, Governmental influences and policies
From 1986 up to now, Japan has implemented the policy of market opening and import liberalization.
a. Continuing export support measures
-Apply incentives and incentives for exporters such as tax exemption, reduction, financing at low-
interest rates. Opening up opportunities for Vietnam to easily export to Japan with these support
incentives.
-Trade promotion: building product introduction rooms, exploring and searching for future
products to connect with domestic businesses. Opportunities for Vietnam to connect with foreign
businesses to boost the economy.
-Financial - monetary policies: applying a series of measures. Through foreign currency
management, the use of exchange rate adjustment measures to affect foreign trade activities.
Making Vietnam easier with the currency of Japan.
b. Support to create conditions for foreign companies to sell products in Japan
-For items: assistance in finding commercial partners, support in market research, support offices
in 6 cities Japanese main.
-22 free trade zones are being developed to provide infrastructure
-Cut down the financial support for Japanese farmers: thereby creating conditions for foreign
agricultural products to be exported to this market.
 Since then, Vietnamese businesses can easily have headquarters in Japan.
6, Tax practices
-Import tax reduction. The preferential tariff rates apply to 141 developing countries and 14
territories under the Common Preferential System (GSP). In 2007, the Japanese Government
expanded the list of goods eligible for preferential subsidies to 49 least-developed countries, from
86% to 98% for all tariff categories.
-According to the Japan Tariff Association, the tariff on goods imported into Japan is among the
lowest in the world. Currently, the tax rates applied to agricultural products are decreasing. The
tax rate of goods such as cars, accessories, software, computers, and industrial machines is 0%.
 With this low tax rate, it will help Vietnam easily penetrate the market, boost the economy without
losing many strict tax costs.
7, Labor export
-The Japanese Ministry of Health and Welfare recently announced the number of foreign workers
in this country, as of the end of 2019, Vietnam ranked second with more than 401,000 people.
-The highest number of foreign workers working in Japan ever reflects the labor shortage caused
by the prolonged aging of the population in Japan.
-The Vietnamese workforce going to work in Japan will continue to maintain its momentum in
2020 and the following years. This is a group of skilled and skilled workers who return to their
home country to contribute to the supply of an experienced workforce.
 Bringing a large source of foreign currency income. Thanks to the reception of the workforce,
Vietnam has gained experience, technology, and skills transfer to open up the economy for the
country. Promote foreign relations.
8, Risks
a. Japanese import - export policy
-Japanese customs regulations are relatively complicated and complicated, causing many
troubles. Any country wishing to import goods must also make a customs declaration and obtain
an import permit after the inspection of these goods.
-Voluntary Export Restrictions: requires partner countries to reduce exports of items that could be
detrimental to Japanese production or consumption.
b. Taxes
However, in trade, Japan is criticized for implementing tariff policies to limit the purchasing
power of Japanese people. Some items, such as leather goods and agricultural products. Taxes on
processed products are also relatively high.
c. Products
The regulations on technical standards, safety, hygiene, and environmental protection are very
strict. If the product does not meet even the smallest element of these regulations, it will be
returned by the Japanese side. Therefore, businesses need to carefully study the regulations on
technical standards, safety, hygiene, and environmental protection that Japan sets for each type of
their products and fully meet the regulations this plan
III. CONCLUSION
The above factors show that the cooperation between Vietnam and Japan has brought many
benefits to the people, such as creating labor opportunities, medical assistance, support for
trainees, and ODA. Vietnam has abundant young human resources, suitable for labor export.
Vietnam's agricultural strengths are increasing. Japan has made important and effective
contributions to the cause of socio-economic development, hunger eradication, poverty reduction,
and improvement of the infrastructure system of Vietnam,...
The friendly cooperation between the two countries is a mutually beneficial relationship, a solid
foundation, and a strong driving force for new and promising development opportunities and
making positive contributions to peace, stability, and prosperity in the future. Thereby, each
citizen needs to actively participate and promote its role in contributing to further improving the
quality and efficiency of foreign affairs, promoting the image of a dynamically developing
Vietnam, being a reliable partner, and accountability in the international community.