Vietnam’s policy of opening new export markets to ease adverse impacts of global economic recession has made initial success after two years of acceleration. The country’s export turnover with new markets like the Middle East, Africa and particularly South Asia has increased significantly. Remarkably, within a short time, Vietnam’s shipments to Bangladesh climbed nearly 6 times.
Mr Ly Quoc Hung, Director of the African and Southwest Asia Market Department under the Ministry of Industry and Trade, said, immediately when the global economic crisis occurred, the ministry launched many trade promotion activities and supports for domestic companies to boost trade ties with India, Bangladesh, Pakistan and Sri Lanka. Priorities to approach Afghanistan, Bhutan, Nepal and Maldives were less.
According to the African and Southwest Asia Market Department, the two-way trade turnover between Vietnam and eight South Asian nations rose 64.7 percent year on year in the first three months of 2011. Vietnam earned US$512 million from exports to these markets in the reporting period, up 148.5 percent, and spent US$753 million on imports there, up 34 percent. In 2010, the bilateral trade revenue topped US$3.36 billion.
Hung said the export growth of nearly 150 percent to this region was attributed to the rising demand for agricultural products and foods from Vietnam. In addition, this also came after efforts of Vietnamese exporters in trade promotion and export introduction.
The free trade agreement between India and ASEAN countries, including Vietnam, which came into effect from June 1, 2010, also offered many opportunities for Vietnamese goods to make inroads into India. The shipments to India were worth US$292.5 million, accounting for 57.1 percent of the country’s total exports to this region and representing an increase of 88.2 percent in value, said Mr Hung. India is importing more from Vietnam, particularly garment and textile materials, footwear, cinnamon, steel products, motorcycle parts, etc.
Extraordinarily, the export to Bangladesh recorded the highest growth of nearly 590 percent, followed by Pakistan and Sri Lanka with 92 percent 32.9 percent rise, respectively.
Impressively, Vietnam can export high-end products like mobile phones, machines, equipment and auto parts to these markets, let alone agricultural and natural minerals as with other markets, Hung noted.
Specifically, the export value of mobile phones, steel and yarns reached US$83 million, US$60 million and US$25 million, respectively. In the first quarter, Vietnam saw very good results of new exports to this region, including rice (US$121 million), clinker (US$24 million), pharmaceuticals, motorcycle parts and bottled water. Notably, rice and clinker were strongly exported to Bangladesh since late 2010.
Vietnam’s imports from Indian made up the largest proportion in the region with 94 percent, or US$708 million, up 37.7 percent year on year, followed by Pakistan with US$28.6 million, down 22.3 percent; and Bangladesh with US$11.6 million, up 222.2 percent.
Vietnam mainly imports animal feeds, cottons, pharmaceuticals, chemicals, pesticides, and raw materials for apparel, footwear, plastic and pharmaceutical industries from South Asian countries. Vietnam’s major imports from India are also the country’s strong exports like pharmaceuticals, equipment, machines and spare parts.
Hung said imports from South Asian nations are not luxury goods but inputs for manufacturing and processing activities or consumer goods. Prices and types of goods from these markets are very competitive and diverse. Nonetheless, Vietnam suffers a trade deficit of US$241 million with South Asian markets.
Huong Ly
Vietnamese
