Distinctive flavors key for Vietnamese products to attract Japanese consumers: Aeon exec

Japanese consumers have a strong and diverse appetite for imported goods, particularly those with distinctive flavors, said Shiotani Yuichiro, general director of Aeon Topvalu Vietnam Co., Ltd.

He was speaking at a seminar on "Promoting exports to the Japanese market and standards for accessing the Aeon Vietnam distribution system," organized by the Investment and Trade Promotion Center of HCMC (ITPC) in collaboration with Aeon Topvalu Vietnam Co., Ltd. and Aeon Vietnam Co., Ltd.

Yuichiro said the primary factor that would help Vietnamese products gain traction with Japanese consumers would be their unique flavor.

But businesses should also meet Japanese market requirements, including high product quality standards, appealing aesthetics, convenient packaging and design, and a commitment to sustainability and environmental friendliness, he added.

To support Vietnamese small and medium enterprises in exporting goods to Japan and the Aeon system, Aeon Topvalu Vietnam Co., Ltd, a private brand developed by Aeon, provides guidance on technical and quality standards towards having them adapt and improve, Yuichiro.

Quyen Thuy Ha, head of the Vietnam Trade Office in Osaka, Japan, said that Vietnam and Japan have complementary economic structures. Japan is Vietnam’s third-largest export market and fourth-largest trading partner, she noted. Major Vietnamese exports to Japan include textiles, vehicles and spare parts, wood and wood products, seafood, and phone components.

Ha said combining Vietnam’s manufacturing capabilities with Japan’s technological expertise and quality management could yield substantial benefits for both countries. For instance, Vietnam’s textile and garment industry could leverage rules of origin to enjoy tariff preferences when exporting to Japan.

The wood and handicraft sectors also have significant opportunities, as Japanese consumers are willing to pay premium prices for unique and artistic products, she said.

Ha emphasized that while the market potential is considerable, Japan’s strict import standards and high requirements for quality and sustainability pose challenges.

Therefore, Vietnamese exporters must invest in research, product improvement, and quality management, paying attention to all aspects from cultivation and harvesting to production, packaging and distribution.

Ha also felt that Vietnamese businesses could benefit from e-commerce to boost exports as Japanese consumers increasingly shift towards online shopping.

She said Japan already consumes various types of noodles, so Vietnam’s dragon fruit noodles could only succeed if introduced correctly. She recommended that businesses explore consumer preferences through market fairs and gain specific insights into the Japanese market.

Tran Phu Lu, director of ITPC, said Japan has been a leading economic and trade partner for Vietnam in recent years. The two countries have signed numerous bilateral and multilateral free trade agreements (FTAs), such as the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP), the Vietnam-Japan Economic Partnership Agreement (VJEPA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership Agreement (RCEP).

These FTAs have established crucial cooperation frameworks, fostering trade, investment, and business relations between the two nations. Trade exchanges between Vietnam and Japan have remained balanced, sustainable and grown steadily, he said.

According to the General Department of Vietnam Customs, trade turnover between the two countries in the first seven months of 2024 reached $25.87 billion, up 4% from the same period in 2023. Vietnam’s exports to Japan totaled approximately $13.46 billion, a 2.8% increase year-over-year.

Meanwhile, HCMC has accorded great importance to the comprehensive strategic partnership with Japan. Two-way trade turnover between HCMC and Japan grew 14% year-on-year in January-July 2024 to $2.21 billion. HCMC’s exports to Japan during this period are estimated at $1.3 billion, up 6% year-on-year.