Trade relationship between Vietnam and Japan: Current situation and trend

Abstract

Using the Comparative Advantage Theory, models to evaluate trade relationship and data of the United Nations, the study analyzes the relationship between Vietnam and Japan in the period 2001 -2015. Japan is the largest trading partner of Vietnam with trade volume steadily increasing and equal bilateral trade volumes. Results indicate that the high Vietnam – Japan trade intensity reflects the importance of Japan to Vietnam in international trade. The bilateral trade of these two countries tends to be extraindustry, to which Vietnam exports to Japan comparative advantage products such as agricultural and labor-intensive products while Japan exports to Vietnam machine, equipment and input materials. Vietnam – Japan trade relationship is projected to keep expanding owing to continuously improved bilateral political and economic relationship.