Vietnam’s exports to a number of countries have increased strongly in the first months of this year thanks to the implementation of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), despite the sluggishness in the global trade.
The General Department of Vietnam Customs has announced statistics on Vietnam’s two-month exports to Japan and Canada, which surged by 11.2% and 36.7%,respectively, compared to the same period in 2018.
Vietnam’s export revenue to the Japanese market reached US$4.62 billion in the first quarter of 2019, an increase of 6.68% compared to the same period in 2018.
In March alone, Vietnam’s export revenue to Japan was reported at US$1.68 billion, a sharp increase of 62.25% compared to February 2019 and up 2.71% compared to March 2018.
In particular, the export of fertiliser has recorded a dramatic growth in the first quarter of 2019. Vietnam shipped 8,126 tonnes, equivalent to US$3.7 million,which is up 509% in terms of volume and 1,158% interms of value when compared to the same period of 2018.
Other types of Vietnamese exports to Japan also witnessed considerable expansion in the first quarter of this year, including chemical products (up 70%), animal feed and raw materials (up 56.8%), ore and minerals (up 52%), iron and steel of all kinds (up 49%); plastic materials (up 43%), and others.
Vietnam’s increase in exports to Japan in the first three months of this year was attributed to the CPTPP, under which, Japan for the first time pledged to completely eliminate import tariffs for a majority of agricultural and aquatic products imported from Vietnam.
In addition, the two free trade agreements (FTA) of Vietnam – Japan FTA and ASEAN – Japan FTA also remove tax barriers to Vietnamese aquatic products exported to Japan.
Meanwhile, Canada is also considered as one of the markets bringing the most added value to Vietnam’s exports under the CPTPP.
According to the General Department of Vietnam Customs, the two-way trade turnover between Vietnamand Canada has tripled from US$1.14 billion in 2010 to US$3.85 billion in 2018; in which Vietnam has always enjoyed trade surplus to Canada, with a trade surplus of US$2.14 billion in 2018.
After the effectiveness of CPTPP, Vietnam’s export revenue to Canada has grown strongly. Vietnam’s exports to Canada reached over US$506 million in the first two months of 2019, up 36.6% over the same period last year.
Garments and textiles and footwear are considered the two industries that benefit the most from CPTPP as the import tax rate for textiles and garment products will bereduced from 16 -17% to 0%, according to the 4-year roadmap, while tax rate on leather shoes will be decreased from 18% to 0%, according to the 7 -11 year schedule.