Japan and Vietnam to Grow Agricultural Development Cooperation

July 4, 2014 Posted by Vietnam Briefing Reading Time: 3 minutes

HANOI – On June 26, Japan and Vietnam held their first high-level dialogue on agricultural development cooperation in Hanoi, attended by Vietnamese President, Truong Tan Sang, and Japan’s Agriculture, Forestry and Fisheries Minister, Yoshimasa Hayashi.

RELATED: Dezan Shira & Associates’ Business Advisory Services

The dialogue called for the development of a medium-to-long-term vision for agricultural sector cooperation between the two countries. The meeting concluded with a bilateral agreement that aims to promote Vietnam’s farm sector growth and increase investment opportunities for Japanese firms in the Vietnamese market.

According to the agreement, Japan will assist Vietnam in building a high-quality agricultural production chain covering the production, processing, distribution and sale of Vietnamese agricultural products (especially those destined for the Japanese market).

Although Vietnam is rich in raw agricultural materials, the market value of its produce remains relatively low due to the country’s obsolete technology and underdeveloped production and supply chain infrastructure. If the country receives advanced biological technology from Japan, Vietnam will be able to increase its agricultural productivity and produce high-value products that meet both Japanese and world standards.

During the first phase of bilateral agricultural cooperation between the two countries, Japan will focus on helping Vietnamese products, such as shrimp and coffee, meet its food safety standards. Once Vietnam is able to produce qualified products that meet Japanese standards, other products aside from coffee and shrimp will be permitted to enter the market.

Recently, several Japanese firms have begun exploring investment opportunities in Vietnam, especially in the agroforestry and fisheries industries. According to the Japan External Trade Organization (JETRO), Japanese firms have been actively looking for opportunities in Binh Dinh province’s fishing and the tuna processing industries.

Another popular destination for Japanese firms is the Mekong Delta, which features significant potential for the development of agriculture and fishery operations.

Cooperation between the two countries, one with an abundant supply of raw agricultural materials and one with advanced technology in farming and agricultural processing, is expected to improve economic efficiency on both sides.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email vietnam@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

Related Reading

Developing Your Sourcing Strategy for Vietnam
In this issue of Vietnam Briefing Magazine, we outline the various sourcing models available for foreign investors – representative offices, service companies and trading companies – and discuss how to decide which structure best suits the sourcing needs of your business.