centrally-planned mechanism and develop a socialistoriented multi-sector market economy. requiring Vietnam's economic th Page 2 of 6 . The Socialist People’s Republic of Vietnam was founded in 1954 and unified in 1976 after the Vietnam War. Vietnam’s identity has been shaped by long-running conflicts with foreign forces. serious challenges also come after become a member of WTO. Since 1986. On November 11. Vietnam officially became the World Trade Organization’s 150 member after 11 years of preparation. With the history spans over 4000 years. Nowadays. Over that period. However. Vietnam became a full member of ASEAN on 28 July 1995. Vietnam has embarked on the course of ―Đổi mới‖ (Renovation Policy) – the comprehensive economic renovation which aims to eliminate the subsidy-based. 2007. the economy of Vietnam has experienced rapid growth. Vietnam is in the period of integrating into the world's economy. to ensure the continuation of liberalizing reforms and create options for trade expansion. bureaucratic.560 sq km. The intention of Vietnam in accessing to WTO was to provide an important boost to the country’s economy. as a part of globalization. entered Asia-Pacific Economic Cooperation (APEC) in November 1998 and has participated ASEAN Free Trade Area (FTA).Name : ID : NGUYEN Ngoc Nam Trung 12410258 Business and Economy in Asia Pacific MUTO Koji Vietnam – Japan Relations The economy of Vietnam Vietnam – a country locates in South East Asia which has the area of 329. including 8 years of negotiation. Twenty years of liberal economic reforms have brought sweeping changes and foreign investment to a nation characterized by increasing industrialization and a reduction in poverty.

copper and bronze back in those days because of their huge profit when brought to Japan. At present. Japanese traders often donated money to the locals and were well treated. Although Vietnam’s economy. Because of the expansion in trading of Japan. Princess Ngoc Khoa to Araki Shutaro. an eminent Japanese trader. Japanese troops remained in Vietnam until they surrendered to the Allies in 1945 when World War II officially ended. spices and sandalwood were popular trading goods to Japanese silver. As time goes on. many countries’ ports in South East Asia such as Siam (Thailand) and Malaysia were visited by the Japanese red seal ships. They also established a Japanese district named Nihonmachi in Hoi An so as to handle the influx of traders. Many settled and assimilated into their new surroundings. reflecting the crippling effect of the Vietnam War (1954–75) and austerity measures introduced in its aftermath. contact between Japan and Vietnam came in the form of trade. Page 3 of 6 . Modern times Japan invaded Vietnam in September 22. Vietnamese silk. which continues to expand at an annual rate in excess of 7 percent. According to an archaeological dig in Kyushu. is one of the fastest growing in the world.Name : ID : NGUYEN Ngoc Nam Trung 12410258 Business and Economy in Asia Pacific MUTO Koji sectors to open the door to increased foreign competition. Leaders of both countries exchanged amicable letters and gifts with each other. 1940 and began constructing military bases to strike against the Allies in South East Asia. However. Vietnamese records show that there were already hundreds of Japanese traders residing in the area where Lord Nguyen Hoang opened the port of Hoi An in the early 17th century. the economy is growing from an extremely low base. Lord Nguyen Phuc Nguyen even married his daughter. Vietnam has established diplomatic relationship with over 179 countries all over the world (The World & Vietnam Report – Ministry of Foreign Affairs). Vietnam – Japan relations History Early contacts until 14th – 15th century There was no historical record to recite exactly when the Japanese started trading with Viet Nam. in the early 16th century. trade restriction was place between South East Asia and Japan when Tokugawa became aware of the nation’s overexploited silver and copper in 1685. sugar. a Vietnamese ceramic with the inscribed date of 1330 was revealed but it is unknown how the fragments arrived there. The two countries enjoyed a warm degree of friendship. Vietnamese historians only knew that Chinese merchants traded with the Viet a couple hundred years before the Japanese.

In November 1992. annual ODA to Vietnam exceeds 100 billion yen. Unfortunately. it pledged $US890 million in aid for the country. Japan had made contact with the North Vietnam and had reached an agreement to establish diplomatic relations in September 1973. Japan promptly established diplomatic relations and ended economic restrictions with Cambodia and Vietnam. Japan is Vietnam’s top economic partner. the rise of problems with Cambodia saw a freeze in this support over a 14-year period from 1978 – 1991. the Japanese government began to provide Official Development Assistance (ODA) in 1977.Name : ID : NGUYEN Ngoc Nam Trung 12410258 Business and Economy in Asia Pacific MUTO Koji Japan had consistently encouraged a negotiated settlement at the earliest possible date during the Vietnam War of the 1960s and 1970s. When the Vietnam War ended on April 30. development of education. building and upgrading of transportation and electricity projects. which include China. 1975. in accordance with the treaty. and France as well as Japan continued diplomatic efforts. These nations share a place in the Southeast Asian economy and security framework. In 2007.5 percent increase from the 2006 level of $US835. The two countries have granted each other the MFN status since 1999 and Japan has become one of the biggest trading partners of Vietnam.6 million. and environment protection. Vietnam joined ASEAN in 1995 and the establishment of the ASEAN Plus Three consultations in 1997. However. With regard to foreign direct investment. Since 1995. the ASEAN nations. Today. Japan’s long-term assistance program for Vietnam focuses on five key areas of human resource development and institutional building. Japan is the largest ODA donor of Vietnam in the 1992-2006 periods. economic. agriculture and rural infrastructure development. Tokyo offered Vietnam US$370 million in aid. was decisive. Indonesia (as co-chair with France). 1991 Final Act of the International Paris Conference on Cambodia among the Cambodian parties. security and defense areas. Page 4 of 6 . Before the hostilities ended. The two sides have set up a dialogue mechanism at various levels in all political. a 6. Vietnam’s stance during the long period of negotiations for the resolution to this Cambodian conflict was extremely important. Japan opened an embassy in Hanoi. A resolution to the Cambodian conflict would be found with the involvement of the United Nations. Japan provides to Vietnam the greatest amount of support being given to a single country. Japan. The two countries concluded the Agreement on Investment Promotion and Protection in November 2003. and South Korea. Following the October 23. Later. the two sides’ high level leaders agreed to build the Vietnam-Japan relations along the line of ―reliable partnership and long-term stability‖. Following the unification of North Vietnam and South Vietnam into the Socialist Republic of Vietnam. training and healthcare. Resolution of shifting to ―Doi Moi‖ policies which was passed at the 6th National Meeting of the communist party of Vietnam in December 1986. Australia. In 2002. Vietnam then became isolated in the international community. despite the weakening of the Japanese economy and growing tensions over the budget. among countries around the world providing support to the developing countries. and the five permanent members of the United Nations Security Council. Japan now ranks third among countries and territories investing in Vietnam.

many Japanese decision-makers hope protectionist pressures will go away over time with an aging farmer population that is shrinking and increasingly part-time. in the absence of a substantial farm reform program that would make liberalization of these products easier. Japan’s FTA program. interests.Name : ID : NGUYEN Ngoc Nam Trung 12410258 Business and Economy in Asia Pacific MUTO Koji Free Trade Agreement Program Summary An FTA is an agreement between two countries or regional groupings to eliminate or reduce tariffs and other barriers on trade in goods and services. it is likely to provide a positive. highly protected rice and beef markets are not being offered for liberalization. Moreover. Japan hopes to energize its economy by freeing up trade in goods and services. boost to increasing Japan’s role in the economics and political economy of East Asia. as well as to better compete with China for influence in Asia — objectives that seem to support U.S. Japan’s FTA program to date has not been robust enough to have much impact. On the one hand. The pursuit of FTAs is occurring worldwide and Japan is not an exception. The biggest constraint on moving forward on FTAs of Japan is agriculture. yet small. However. is likely to have varied effects on U. Exports from non-members will find out that they will be discriminated against. While some progress is being made in cutting tariffs on food items that serve small markets. assuming the current cautious and defensive course persists.S. Page 5 of 6 . interests.

Retrieved on May 08. computers.charm.14 billion while imports from Japan matched with nearly an equivalent amount of $6. On 2nd October 2009. Japan will be able to send duty-free its auto parts.html Owen. 2005.586 tax lines while Japan pledges to cut 7. steel and electronic goods for assembly in Vietnam. On 25th December 2008.http://www. among other farm and marine products. Luc. textile and garment. Japanese officials said. Norman G.html Asia Regional Trading Center.. shrimps and products made from shrimps. durian and okra. services and investments.12 billion. From the beginning of October 2009. durians and flowers and so on.com/wfbcurrent/vietnam/vietnam_people. particularly parts that require high skill and have to be brought from Japan. Chandler. ―Japan early trade coin and the commercial trade between Vietnam and Japan in the 17th century‖. Thuan.theodora.Vietnam Economic Partnership Agreement http://aric.mofa. Vietnam commits to cutting 2. University of Hawaii Press. Under the new agreement. Japan and Vietnam signed an economic partnership with a promise to cut tariffs on some 92 percent of goods and services traded between the two nations within a decade. ISBN 0824828410. bilateral trade is projected to reach a very high figure in the next few years. The 2008 world factbook. Vietnam people 2008http://www.220 tax lines. 107). The agreement is said to be strengthen the mutually beneficial economic collaboration between our two countries by facilitating freer flows of goods.shtml Agreement between Japan and the Socialist Republic of Viet Nam for an Economic Partnership – Ministry Foreign of Affairs of Japan – http://www. furniture. and leather shoes products are three main Vietnam-made exports to Japan. Thegioi Publishers. With the signing of the agreement. Vietnam will get duty-free access to the Japanese market for shrimp. 2009 . the Vietnam.Japan Economic Partnership agreement came into effect.php?id=146&ssid=3&title=JapanVietnam%20Economic%20Partnership%20Agree ment%20 Page 6 of 6 . David The emergence of modern Southeast Asia (p. References Communist party of Vietnam (1986) ―6th National Congress Documents‖. Exports from Vietnam to Japan in 2007 touched US $6.ru/coins/vn/nagasaki. Aquatic. Major Vietnam-made exports to Japan enjoy import duty rates of 0% from October 1 include garments and textiles.jp/region/asiapaci/vietnam/epa0812/index.Name : ID : NGUYEN Ngoc Nam Trung 12410258 Business and Economy in Asia Pacific MUTO Koji Japan – Vietnam Economic Partnership Agreement The two sides began discussing on the free trade agreement in January 2007.org/fta.adb. Hanoi.go. electric cables. Trade and Investment – Japan.

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