(VEN) - The market in Africa was a highlight for Vietnam's exports in 2009. While most Vietnamese exports to other markets fell, those to Africa grew last year. Vietnam Economic News' reporter Dinh Lan spoke with Ly Quoc Hung, the director of the South West Asia and Africa Department of the Ministry of Industry and Trade.
The government considered 2009 a key year in economic relations with Africa. What was actually done in the year?
Vietnamese exports to foreign countries declined in 2009, except those to Africa, which soared more than 20 percent against 2008, to about US$1.61 billion. Imports from this market came to US$500 million. Vietnam's biggest exports to Africa were rice, gemstones/metals, textiles/garments, seafood, computers/computer accessories, coffee and pepper. Major imports were raw wood, cotton, cashews, waste iron/steel and textile/garment/leather footwear materials.
The success resulted from the efforts made by the government, ministries, state authorities and businesses. However, what was achieved in the year was below the potential for Vietnam and Africa.
It is expected that Vietnam will sell more advantageous products to Africa in 2010 such as rice, coffee and pepper.
What are the trade promotion plans for this market this year?
The Ministry of Industry and Trade will continue to provide information about the African market for Vietnamese businesses, send business groups there to meet local businesses and importers and organize workshops, exhibitions and fairs in order for businesses in Vietnam and Africa to find business opportunities and boost trade promotion activities.
The Ministry plans to send a trade promotion group to Tanzania and South Africa in the third quarter of this year and launch many other trade promotion programs. The South-West Asia and Africa Department will make them public among businesses as soon as possible.
Africa is a large market with 53 countries. What countries do you think are a 'springboard' for Vietnamese products to expand to other markets in this continent?
They are South Africa, Egypt, Algeria, Angola, the Ivory Coast, Ghana, Nigeria, Morocco, Tanzania and Mozambique. Algeria needs to import a large amount of farm products, textile-garments and cement. Egypt needs to buy foreign seafood, textile-garments and electronic accessories. South Africa with the highest gross domestic product (GDP) in Africa is solvent.
Briefly, we choose successful and solvent markets as 'springboards' for Vietnamese goods to reach other markets.
What are opportunities for Vietnamese businesses in the market in South Africa?
I think that the opportunities lie in Vietnamese advantageous exports to South Africa including wood products, food, leather footwear and textile-garments. South Africa is also strong, stable and has the most potential financial market in Africa. This is a good factor for Vietnamese businesses developing in South Africa.
What can you say about the African market?
Africa stands on 31 million sq.km, with a population of more than one billion in 53 countries and a wealth of mineral resources, which are favorable for economic exchange with Vietnam. The purchasing power is high in Africa but the requirements, regarding product quality and design, are moderate and are not as high as in the markets in the EU, the US and Japan. Africa has been active to reduce/terminate technical barriers. With that in mind, I think that Africa is a fairly ideal marketplace for developing countries like Vietnam, particularly regarding price.
Many African countries are given preferences in trade with the US, the EU and other developed countries. Through Africa, Vietnam can find opportunities to develop international economic relations and expand our export market.
At this time, Africa has a high demand for products that are Vietnam's strengths such as rice, coffee, rubber, tea, handicrafts and textile-garments. Meanwhile, Africa has many kinds of material that Vietnamese businesses need to buy.
What advice do you have for Vietnamese businesses?
To succeed in Africa, Vietnamese businesses must fly there to survey the market, take part in exhibitions/fairs and set up distribution channels. They can also invest directly there to reduce transport costs and make use of the cheap, strong workforce in Africa. For example, Vietnamese businesses can invest in the areas of food processing, confectionery, beer, agricultural processing and more./.
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