Individual Strengths Need to Be Added

The meeting concluded successfully and efficiently. In fact, the decision on the establishment of the Joint Subcommittee for Vietnam - Pakistan Trade was made in 2001 but its effectiveness was delayed until July 29, 2011. We expect such a meeting will be held annually and Pakistan will invite Vietnam to attend a similar meeting in Islamabad in 2012.

 

At the meeting, both sides agreed on measures to enhance cooperation like lifting tariff and non-tariff barriers to tap individual potentials and advantages of each party, encourage enterprises to exchange cooperation and bring mutual trade ties to new heights.

 

Both countries have made positive progress in bilateral trade relations in the past years. To step up investment cooperation, the two countries need to supplement fields of individual strengths. For instance, Vietnam is rich in agricultural and aquatic resources, footwear, furniture and handicrafts while Pakistan is strong at pharmaceuticals, textiles, garments, leather and footwear.

 

During this visit, Karachi-based Siddqsons Company Limited (Pakistan) - a seafood company - asked the Vietnam Association of Seafood Exporters and Producers (VASEP) to find a partner for a US$5 million seafood processing venture in Vietnam. This company will supply aquatic materials, mainly fish, for the export-oriented production facility in Vietnam. The investment will be increased if operations are good enough.

 

Currently, bilateral trade turnover reached only US$222.7 million in 2010, which certainly mismatched potentials, opportunities and expectations of both sides. A plenty of obstacles and difficulties impede trade and investment cooperation between the two countries like no representative banks for Vietnam in Pakistan, and vice versa. Payment between the two countries has to be carried out via banks in third countries. Moreover, there is no direct sea links or air links between Vietnam and Pakistan, causing slow and late deliveries of goods.

 

What’s more, tariffs on Pakistani goods exported to Vietnam are quite high in relation to other regional countries, especially rubber and pepper. Vietnam and Pakistan have not signed the free trade agreement (FTA) while the South Asian nation has inked FTAs with China and Malaysia.

 

At the joint meeting, we put forth these difficulties and recommended remedies. Firstly, the two countries should establish representative bank branches in both Pakistan and Vietnam to facilitate companies of the two countries to do business. Information exchange should be enhanced by both parties by organising trade fairs, exhibitions, seminars and business missions or accelerating trade promotion activities in both nations for companies to explore market opportunities and business environments. These are important channels for companies to survey markets, meet partners and discuss business opportunities.

 

I hope and believe that after my Vietnam visit and the joint meeting, the two governments will make effective measures to promote mutual trade and investment cooperation and double trade turnover in 2-3 years.