VJEPA – a turning point in the history of Vietnam-Japan relations
QĐND - Friday, December 26, 2008, 20:59 (GMT+7)
The Vietnamese Minister of Commerce and Industry, Vu Huy Hoang, and the Japanese Foreign Minister, Hirofumi Nakasone, acting under authorization from the prime ministers of their two countries have just signed an agreement on economic partnership (VJEPA).
The signing ceremony was held on December 25th.
The signing of VJEPA, which is seen as an economic and political turning point in the history of the relationship between the two nations, marks the 35th year of diplomatic relations between the two nations.
VJEPA is a bilateral comprehensive agreement involving a series of areas, such as goods and services trade, and investment, as well as the improvement of the business environment, and labor, technical and quality standards cooperation.
Under the agreement, some 92 per cent of both sides’ exports, including Vietnamese seafood, garment and agricultural products will enjoy tax holidays.
In return, Japanese industrial exports to Vietnam, including automobile spare parts and electronics, will befreed from taxes, or havethemsharply reduced by Vietnam.
In addition, the agreement aims to promote investment and trade exchanges between the two sides, which will help bring into full play the strengths and potentials of the two nations.
VJEPA is expected to come into effect in 2009.
Translated by Thu Nguyen