The Hanoitimes – Over recent years, Vietnam businesses have made considerable inroads into the African and Middle Eastern markets, but most have failed to realise their full potential and achieve large-scale market leadership.
For these businesses, the key to reaching the next level will be learning to do business in the African and Middle Eastern way, rather than simply trying to impose the Vietnamese business model in a foreign market.
As of the end of 2013, Vietnam had invested US$728.3 million in 18 projects in 11 African nations.
Viettel alone had invested US$400 million in the telecoms sector in Mozambique and Cameroon, while Vietnam Oil and Gas Group (Petro Vietnam) had pumped more than US$300 million into the oil and gas field in Algeria, the Republic of Congo and Madagascar.
In 2013 the nation’s total import-export turnover with Africa peaked at just over US$4.3 billion and in the first half of this year it continued its upward trek hitting just more than US$2 billion.
The country’s key export items to Africa are rice, telephones and components, seafood while key imports from the market are cashew nuts, cotton and iron and steel waste.
The private sector has also invested in areas such as construction, automobile, garments and textiles, electronics, beverages, wood processing, gold and mineral resources.
On the other side of the coin, nine African nations have invested US$185.63 million in 72 projects in Vietnam.
Tran Quang Huy, head of the Ministry of Industry and Trade (MoIT)’s Africa, West Asia and South Asia Market Department says there are tremendous opportunities for future cooperation in the African market.
The Government has been diligent in its efforts to advance cooperative relations with African nations and promote trade and investment in areas of the nation’s strengths.
However, local businesses still face many challenges. For example, exports to Africa should be labelled in English and French or the language in the resident country, which is no easy task, Huy explains.
They should also strictly comply with laws and regulations pertaining to labelling of the foreign country, Huy added.
Hanoi Trade Promotion Centre Director Nguyen Thi Mai Anh says businesses should devise strategic plans to increase export turnover and not rely on the the centre in the future.
To realize Vietnam’s full potential, enterprises must show a strong and visible commitment to the African and Middle Easter markets, empower their local operations, and invest in local talent and pay closer attention to the needs of African consumers.
By Bach Nhat
Đăng ký: VietNam News