Vietnam, Japan to scrap autoparts, seafood, clothing tariffs

Viet Nam plans to scrap tariffs on autoparts and steel products from Japan in return for an end to duties on seafood, clothing and farm products exported to Asia’s largest economy, Vietnam’s trade minister said.

The first bilateral free-trade accord between the nations has been agreed upon in principle and is aimed at boosting trade between the two Asian nations, Minister of Industry and Trade Vu Huy Hoang told reporters in Hanoi Monday.

“The agreement is expected to increase the competitiveness of the two countries in the region and in the world,” Hoang said. “The two sides will finalize some technical content in the draft so that the official agreement can be signed by the end of this year.”

Negotiations on the trade agreement, which may help Viet Nam bolster slowing growth with increased exports, started in January 2007. Japan is the second-biggest destination for Vietnam’s goods after the U.S. Trade between Japan and Vietnam will rise to US$16 billion this year from $12.2 billion in 2007, the Dau Tu newspaper said September 19, citing an official from the Ministry of Industry and Trade. (Bloomberg)