The comprehensive free trade agreement between Japan and Vietnam that will come into effect later this year is the latest manifestation of the crucial role that Japan has played in Vietnam’s evolution from command economy to market-oriented one. The Japanese parliament ratified the agreement, referred to as the Vietnam-Japan Economic Partnership Agreement, in June. It paves the way for a significant two-way increase in the flow of goods and services as well as improvement in other areas such as investment and labor movement. Its implementation will be one of the cornerstones of the “strategic partnership for peace and prosperity in Asia” that the two countries are currently working on.