What is the Vietnam – Japan Economic Partnership Agreement (VJEPA)?
The Vietnam – Japan Economic Partnership Agreement (VJEPA) is a comprehensive bilateral free trade agreement between Vietnam and Japan, signed on December 25, 2008, in Tokyo, Japan, and becoming effective on October 1, 2009. This agreement, abbreviated as VJEPA, marked a significant milestone as Vietnam’s first bilateral economic partnership agreement after joining the World Trade Organization (WTO).
Negotiation Background and Reasons for Establishing the FTA
Background: VJEPA is the first bilateral economic partnership agreement that Vietnam signed after joining the World Trade Organisation (WTO) in 2007. The agreement was negotiated based on the framework of the ASEAN – Japan Comprehensive Economic Partnership (AJCEP).
Reasons for formation:
Promoting the Strategic Partnership: The signing of VJEPA aims to strengthen and further enhance the strategic partnership between Vietnam and Japan, which already had strong economic cooperation ties.
Attracting Investment and Technology: One key objective is to attract foreign direct investment (FDI) from Japan, especially in supporting industries and high technology, thereby improving Vietnam’s production capacity.
Opening Access to a Major Market: The agreement creates favourable conditions for Vietnamese goods—such as agricultural products, seafood, and textiles—to access the Japanese market, one of the largest and most demanding markets in the world, with preferential tariffs.
A First-Generation FTA: VJEPA is not merely a traditional trade agreement on goods; it also includes commitments on services, investment, intellectual property, and business facilitation. Therefore, it is considered a comprehensive Economic Partnership Agreement (EPA).
What are the main benefits and commitments of the VJEPA?
The VJEPA is a comprehensive agreement structured across 14 chapters and numerous annexes, designed to foster extensive economic cooperation between Vietnam and Japan. Its key commitments span various critical areas, including trade in goods, services, investment, and other forms of economic collaboration, offering significant benefits to businesses in both countries.
| Chapter | Chapter Title (Vietnamese) | Main Content |
|---|---|---|
| 1 | General Provisions | Objectives; definitions; and scope of the Agreement. |
| 2 | Trade in Goods | Commitments on tariff elimination and reduction. |
| 3 | Rules of Origin | Criteria for determining the origin of goods eligible for tariff preferences (Form VJ C/O). |
| 4 | Customs Procedures | Rules on customs procedures and trade facilitation. |
| 5 | Sanitary and Phytosanitary Measures (SPS) | Ensuring food safety and protection of human; animal; and plant health. |
| 6 | Technical Barriers to Trade (TBT) | Minimizing trade barriers caused by technical standards and regulations. |
| 7 | Trade Remedies | Rules on the application of safeguard and anti-dumping measures. |
| 8 | Trade in Services | Market access and national treatment commitments for services. |
| 9 | Investment | Commitments to protect and facilitate investment activities. |
| 10 | Intellectual Property | Protection and cooperation on intellectual property rights. |
| 11 | Competition | Rules on competition policy. |
| 12 | Economic Cooperation | Areas of cooperation to help Vietnam enhance competitiveness. |
| 13 | Dispute Settlement | Mechanism for resolving disputes between the two governments. |
| 14 | Institutional Provisions | Establishment of the Joint Committee and implementation provisions. |
Key Commitments
Tariff Commitments:
- Japan is committed to eliminating import tariffs on about 94.6% of Vietnam’s total tariff lines within 10 years.
- Vietnam committed to eliminating tariffs on about 87.6% of Japan’s total tariff lines within the same period.
Rules of Origin: VJEPA uses Certificate of Origin Form VJ. The rules of origin under VJEPA are relatively more flexible than those in other FTAs, particularly for textiles and seafood, allowing Vietnamese businesses to better utilise the agreement.
Investment and Services: Commitments go beyond the WTO level in certain service sectors, offering broader market access and stronger protection for investors.
Where can I find official VJEPA documents and implementation guidelines?
For businesses seeking to understand and utilize the VJEPA, official documents and implementation guidelines are readily available from reliable sources. The Vietnam FTA Portal, managed by the Ministry of Industry and Trade (MOIT), serves as the primary and most authoritative resource. This portal provides the full text of the VJEPA in both Vietnamese and English, along with detailed tariff reduction schedules and product-specific rules of origin, accessible directly at https://vntr.moit.gov.vn/.
Implementation Guidelines and Legal Documents
- Ministry of Industry and Trade (MOIT): The lead implementing agency. Issue circulars on Rules of Origin and procedures for issuing Form VJ Certificates of Origin (C/O).
- Ministry of Finance (General Department of Customs): Issues government decrees on Vietnam’s special preferential import tariff schedules under VJEPA during the implementation phase.
- Business Support Organizations: The Vietnam Chamber of Commerce and Industry (VCCI), through its WTO and Integration Center, provides handbooks, training materials, and detailed guidance for businesses on how to utilise VJEPA preferences effectively.
See other FTAs:
