Garments aim to enter Japanese market

To capitalise on this lucrative market, many garment manufacturers have adjusted their operations and planned to increase export volume to Japan to 20 percent in 2013 from the current 10 percent.  

They have also invested in upgrading workshops, production lines, and other facilities to meet the tough requirements of Japanese importers.

According to the Vietnamese Trade Office in Japan, Japanese businesses attach great importance to trust in transactions and require production to meet the highest technical standards.

Japanese consumers also have strict demands for imports in terms of quality, durability, reputation, and convenience. They are interested in after-sale services and various product distribution modes and are willing to pay high prices for quality items.

The Japanese are among the most health aware consumers in the world, forcing garments, footwear, food, handicrafts and even packaging design to be adjusted to cater to their tastes.

The Vietnamese Trade Office forecasts that in a couple of years there will no longer be the concept of “China plus 1”, meaning 90 percent of garments are produced in China and the remaining 10 percent come from other countries.  

Therefore, there is a good possibility that foreign garment makers will shift their production bases from China to Vietnam to raise their share in this market to 20-30 percent.

Vietnam’s garment export volume to Japan is expected to exceed that to the European Union which is currently 16 percent.

In addition, many Vietnamese commodities imported into Japan such as farm products, seafood, garments, steel and electronic appliances are enjoying tax preferences under the 2008 Vietnam-Japan Economic Partnership Agreement (VJEPA).

This means Vietnamese garments will be exempt from Japan’s import tariffs if they meet the required specifications. It is also an incentive for Japan to relocate production bases and increase orders from Vietnam.