Vietnam to export more farm products to Japan, RoK Japan and the Republic of Korea (RoK) are still two potential export markets for Vietnamese farm products, according to the Asia-Pacific Market Department under the Ministry of Industry and Trade (MoIT). Breaking through non-tariff barriers The department said that apart from reducing and eliminating tariffs to promote the export of agricultural and seafood products to Japan and the RoK, it is necessary to break through their markets’ non-tariff barriers. According to the United Nations Conference on Trade and Development (UNCTAD), non-tariff measures are generally defined as policy measures other than ordinary customs tariffs that can potentially have an economic effect on international trade in goods, changing quantities traded or prices or both. Different from normal tariff measures, non-tariff measures are difficult to quantify by concrete figures and closely associated with security, health and social purposes. Therefore, the impact of non-tariff measures on international trade are difficult to define and it is also difficult to ask nations to remove these tariffs. Japan has tight controls over the quality of Vietnamese agricultural and seafood products. But Vietnam has not fully yet met its requirements. The Japanese Ministry of Health, Labour and Welfare has recently decided to inspect Ethoxyquin (ETQ) residue in all frozen shrimps imported from Vietnam at the maximum residue limits (MRL) of 0.01ppm. In addition, the RoK’s strict regulations on animal plant quarantine remain the biggest snag in the export of Vietnamese farm products, especially fresh fruit, cattle and poultry. Like Japan, the RoK has also inspected ETQ residue in shrimps imported from Vietnam, also at 0.01ppm. Opportunities for Vietnamese goods to penetrate the RoK, Japan Over the past three years, Vietnam’s total export turnover has achieved double-digit growth. For example, its exports to Japan and the RoK have increased by 27% and 40%, an average annual basis. Its export earnings from Japan and the RoK in 2012 was estimated at US$13.1 billion and US$5.6 billion, up 21.2% and 18.2% respectively against the previous year. The Vietnam-Japan Economic Partnership Agreement (VJEPA) took effect on October 1, 2009, marking a milestone in the cooperative relations between the two nations. This was Vietnam’s first free trade agreement (FTA) ever signed since its admission to the World Trade Organization (WTO). Vietnam and the RoK have joined the ASEAN-Korea FTA (AKFTA) with preferential policies on the opening of trade of goods and services for both sides. The VJEPA and AKFTA are aimed at improving bilateral trade exchange between Vietnam and Japan and between Vietnam and the RoK. Japan’s sharp reduction in tariffs on imported agricultural and seafood products has opened up opportunities for Vietnamese businesses to penetrate the Japanese market. Last year, Vietnam earned over US$285 million from its farm products exported to Japan, double the figure of 2009. Vietnam’s agricultural and seafood exports to Japan have increased dramatically in recent years, but they make up a small proportion of Japan’s total import volume. The RoK has imported many agricultural and seafood products from other nations in the world, but Vietnam’s market share below 5%. This means there remains plenty of opportunity for VOV to increase its market share in the two potential markets mentioned above. VOV