Japanese agri-businesses are eyeing investments in Vietnam ahead of the Trans-Pacific Partnership (TPP) deal that would eliminate tariffs on trade, reports Vietnam News.
Japanese consulting firm Seiko Ideas has published a report stating that the TPP would see Japan open up to more imports from TPP-member countries, disadvantaging local farmers.
The report said Japanese companies could invest in Vietnam’s agriculture sector, then export the Vietnamese produce to Japan with zero tariffs once the TPP is in full force.
Opportunities for investment in hi-tech farming in Vietnam are reportedly already being explored, according to Nguyen Do Anh Tuan, head of the Institute for Policy and Strategy for Agriculture and Rural Development in Vietnam.
With 78 per cent of tariffs on Vietnamese agricultural exports set to be removed once the TPP takes effect, Tuan said Japanese companies could invest in machinery, fertilisers and pesticides, and looks to team up with Vietnamese companies to developed large-scale fields, packaging and processing facilities to supply both domestic and international markets.
Ten Japanese companies have already invested in agriculture, including vegetables, in Vietnam’s Central Highlands.
