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(VEN) - In 2011, trade between Vietnam and African, West Asian and South Asian countries continued to grow impressively. A wide range of products were exported, including new kinds such as cement, mobile phones, computer hardware and agricultural machinery. This is a good signal for increased trade cooperation between Vietnam and the rest of the world.
2011: big success
Statistics from the General Department of Customs show that in the first nine months of 2011, Vietnam's exports to African, West Asian and South Asian countries totaled US$6.43 billion, up 83 percent compared with the same period of 2010. The yearly export value was estimated to reach about US$8 billion, including US$3.5 billion worth of exports to Africa (up 97 percent compared with 2010), US$2.4 billion worth of exports to the Middle East (up 45.4 percent) and US$2.1 billion worth of exports to South Asia (up 46 percent).
Industrial cooperation between Vietnam and the countries in the above regions showed good results. Specifically, the Vietnam National Oil and Gas Group carried out two oil and gas exploration and extraction projects with total investment of US$360.36 million. One of the two projects was carried out in Algeria as a joint venture between Vietnam, Thailand and the Sonatrach Company of Algeria with total investment of US$243 million. The oil extraction process of this project will begin in 2014 with a capacity of 20,000 barrels each day. The other project was carried out in Madagascar with investment of US$117.36 million.
The Viettel Corporation has been licensed to operate in Mozambique as a telecommunications service provider and an infrastructure investor. After signing a memorandum of understanding on cooperation with the 21st Century Technologies of Nigeria, the Corporation for Financing and Promoting Technology (FPT) of Vietnam has developed some activities to promote investment in and trade with Nigerian partners in the fields of service provision, training cooperation and equipment export.
However, the Department for Africa, West Asia and South Asia of the Ministry of Industry and Trade said that Vietnam's trade with Africa, West Asia and South Asia remains lower than with other regions in the world. This means great prospects for increased cooperation in 2012 and the ensuing years.
Plans for 2012
With a large population and an underdeveloped commodity economy, Africa is considered to be a potential market for Vietnamese export products, especially agricultural products and consumer goods. To boost exports to this market, domestic companies must create quality products that suit the tastes of African consumers and seriously abide by technical requirements, especially for products such as machinery and equipment, processed agricultural products, animal feed and construction materials.
In 2012, Vietnam will continue to export to the Middle East market textiles and garments, leather and footwear, household utensils, consumer mechanical products, agricultural mechanical products, construction materials, agricultural produce and processed agricultural products.
To boost trade with South Asian countries, Vietnam can take full advantage of the ASEAN-India Trade in Goods Agreement. India can be considered as a gateway through which Vietnamese products can penetrate the regional market because the business communities of the two countries are becoming more interested in each other.
Nowadays, more and more people in African and Middle Eastern countries prefer to eat seafood instead of meat in everyday meals. Therefore, those countries' demand for importing seafood and aquatic products has increased. This will bring good opportunities for Vietnamese companies to boost seafood exports. They can also promote aquaculture in African and Middle Eastern countries to export to neighbor markets.
Due to the high import demand of regional markets as well as improved quality of Vietnamese goods, the export of industrial products with high added values such as computer components and electronic appliances, auto spare parts and motorbikes, chemicals, plastics, rubber, machinery and equipment is predicted to continue to grow in 2012.
However, one thing which concerns domestic companies when doing business in the above markets is the spread of trade frauds with support of the Internet. Nguyen Cong Hien, the Vietnamese Trade Counselor in Israel, warned domestic companies of the need to learn as carefully as possible about foreign partners and not to sign contracts via the Internet so as to avoid being defrauded. To achieve good results of doing business with Israeli partners, domestic companies must know very well about their principles. In the long term, domestic companies must think of opening branches or representative offices in foreign countries and send their experts to survey foreign markets.
The Department of Africa, West Asia and South Asia of the Ministry of Industry and Trade affirmed that it will be side by side with businesses in efforts to increase exports in accordance with the motto "Paying more attention to Africa, creating a breakthrough in South Asia, boosting exports to the Middle East." This department will continue to develop a project which aims to improve the efficiency of import-export companies in order to boost exports to the African market. In addition, it will send trade promotion teams to some major markets in the region such as India, Egypt and the United Arab Emirates (UAE). At the same time, the department will organize workshops to provide domestic companies with more information about the markets as well as the policies of foreign countries. It will assist domestic companies in efforts to open branches, representative offices or bonded warehouses in major foreign markets./.
By Hung Cuong & Le Anh
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