The economy in Vietnam in recent years continuously faced difficulty; however, trade relations between Vietnam and the markets of Africa and the Middle East have still achieved success.
Africa with 1 billion people and the Middle East with 260 million are growing potential markets for Vietnam. Countries in Africa and the Middle East have close diplomatic relations with Vietnam. The boost of exports to Africa and the Middle East has particular significance in the context of the traditional export markets of Vietnam facing difficulty due to the global economic crisis today.
Trade between Vietnam and other countries in Africa and the Middle East increased sharply in recent times. In particular, Vietnam always has a surplus to these two markets, and the structure of commodity exchange is increasingly diverse. Vietnamese goods initially had standing and prestige for consumers in Africa and the Middle East, especially rice. The export market has expanded to the entire 55 countries of Africa and 15 Middle East countries.
According to statistics, import-export turnover between Vietnam and Africa and the Middle East continually grows from US$9.9 million in 2011, US$10.2 million in 2012 and US$13.86 million in 2013. Facing difficulties in developing markets such as Europe, America and Japan, Vietnamese enterprises are gradually turning to markets in Africa and the Middle East.
In addition to the field of trade, cooperation in industry, agriculture and investment between Vietnam and other countries in Africa and the Middle East also began to focus and expand.
So far, Vietnam has 17 investment projects in 10 countries and territories in Africa, with a total investment of US$711 million, of which oil and gas sector has the highest proportion of investment. Next are the investment cooperation projects of telecommunications networks in the Republic of Cameroon of Viettel Group with total capital of approximately US$400 million in each country. Investment areas of Vietnam to Africa are increasingly diverse: from telecommunications, manufacturing motorcycle, producing garments, electronics, refrigeration to ecotourism. In industrial cooperation, there are 7 countries and territories in Africa investing in Vietnam with 37 investment projects totalling US$67.76 million.
For the Middle East, cooperation in the field of industry, oil and gas primarily focused on a number of partners such as the Kuwait market with projects Nghi Son oil refinery, Arab Economic Development Fund of Kuwait lending capital for infrastructure development; and construction projects in Kuwait hiring Vietnamese workers. In Saudi Arabia, there is Zamil Steel Factory project investing in Long Son consortium, manufacturing, infrastructure and agriculture, etc. In the UAE market, there is infrastructure construction project. In Oman, Oman Investment Fund (OIF) buys 12.6 percent stake of PVI. Israel has dairy and milk processing in Nghe An, telecommunications cooperation and gene technology and biology.
To reach the aforementioned success, it must mention the very positive activity of Vietnam – Africa and the Middle East Business Forum in the past year. Most of the activities of the Forum are attracting participation of Vietnamese enterprises.
In fact, many contracts between enterprises of Vietnam and Africa and the Middle East were signed and implemented through the connection of the Forum through workshops, business meetings and survey trips. A good example is the company CMS, a member of the Forum, is currently working on construction contracts worth US$3 billion in Angola, opening a branch company in Cameroon, signing African timber contracts worth Euro 3.5 million, cooperation agreement with Israel project marine aquaculture recirculating closed with a total value of US$70 -100 million / 1 farm in Hoang Bo district, Quang Ninh; cashew processing contracts of Guinea Bissau in 3 processing enterprises in Vietnam to re-export it to China, Europe and America.
According to the Secretariat of Vietnam -Africa and the Middle East Business Forum, although the Forum has operated effectively, in general the promotion of trade between Vietnam and Africa and the Middle East remains at a modest level, not commensurate with the potential and desire of businesses of both sides; promotion activities are passive, not informed early to allow time for preparation and performance.
Besides, mechanisms, policy support from the government, the ministries of the two sides are thin and not really effective for businesses doing business with markets in Africa and the Middle East; banking and finance system and transportation are not reliable enough to support the exchange and cooperation between the business community in Vietnam and the countries of Africa and the Middle East.
On the other hand, the two sides do not really actively participate in the international exhibitions / fairs in Vietnam and other countries in Africa and the Middle East due to the high cost of travel to these markets.
Thus, to further facilitate the connection between Vietnam and Africa and the Middle East, the gradual removal of difficulties and active participation of Vietnamese enterprises will boost economic trade and investment between Vietnam and countries in Africa and the Middle East.
Anh Mai
Đăng ký: VietNam News