More Business Opportunities with Pakistani Enterprises

A Pakistani business delegation led by Mr Tariq Iqbal Puri, Chief Executive of Trade Development Authority of Pakistan (TDAP) and Chairman of Pakistan - Vietnam Joint Trade Committee, has arrived in Vietnam to attend the meeting session of the joint trade committee from 27 to 30 July 2011. The delegation consists of General Directors, Directors and representatives from large Pakistani enterprises operating in such industries as garment, textile, leather, pharmaceuticals, sports equipment, seafood, medical equipment, woollen carpets and general trade. On this occasion, the delegation had a business meeting with Vietnamese enterprises in a seminar on “Trade and investment co-operation opportunities between Vietnam and Pakistan” co-organised by VCCI and Pakistani Embassy in Hanoi.

 

According to Pakistani Commerce Secretary Zafar Mahmood, the first meeting session of Vietnam – Pakistan Joint Trade Committee provides satisfactory results for the two parties. Surely this will serve as a large opportunity and potential for the two nations. At the meeting, Pakistan and Vietnam reach an agreement on the necessity to establish task forces with a view to boosting export, reducing tariff, creating effective payment and transaction mechanism and creating favourable conditions for the two countries to conduct import, export activities. To this end, banks of the two nations need to open branches in the other’s country to facilitate payment for their enterprises.

 

Mr Zafar Mahmood also shares that in coming time, Pakistan will have a specific co-operation roadmap with Vietnam, from governmental level to VCCI and enterprises. Pakistan is a potential partner of Vietnamese enterprises. “I believe in future development and co-operation of the two countries. I hope that meetings will be held on a more regular basis so that enterprises of the two countries can have more chances to meet,” added Mr Zafar Mahmood.

 

Mr Shahid M G Kiani, Pakistani Ambassador to Vietnam says that in addition to participating in the first meeting session, the delegation also wishes to enhance the commercial relationship between the two nations. Pakistani leaders wish to have close co-operation with VCCI and Vietnamese Government in order to realize commitments made at the meeting. Pakistan has lots of opportunities to co-operate with Vietnam. Vietnam and Pakistan are friends and potential partners.

 

Ph.D Doan Duy Khuong, Vice President of VCCI, states that VCCI is willing to serve as a contact point for Pakistani enterprises operating in Vietnam to get in touch with ministries and ministerial-level agencies to tackle difficulties. VCCI is also willing to provide business information and consultancy for Vietnamese and Pakistani enterprises.

 

According to Mr Tran Quang Huy, Deputy Director of the Africa, West Asia and South Asia Market Department under the Ministry of Trade and Industry, Vietnam and Pakistan have established diplomatic relationship since 1972. Ever since, such relationship has grown strongly. During business trips of high-ranking officials of the two governments, agreements and MOUs in such areas as diplomacy, commerce, banking and finance, science, technology and fisheries have been signed. These documents serve as important legal frameworks for accelerating bilateral economic and business relation.

 

Trade turnover between the two nations has witnessed significant growth in recent time. In 2005, two-way turnover reached US$80million and went up to US$222.7 million in 2010 (up 2.78 times). In 2010, Vietnam’s export to Pakistan hit US$113.2 million and import from Pakistan, US$109.5 million. Major goods exported from Vietnam to Pakistan include tea, handbags, hats, umbrellas, farming products, garment and textile products and seafood, etc. It should be noted that Pakistan is Vietnam’s biggest tea importer.

 

The trade balance between Vietnam and Pakistan seems to get better. The trade turnover between the two countries is estimated to reach US$300 million in 2011.

Mr Huy believes that in the time to come, in order to further enhance the commercial relationship between Vietnam and Pakistan, it is necessary that enterprises of the two nations participate more enthusiastically in trade fairs, exhibitions and workshops; establish representative offices, branches or companies to approach market in the other country.

 

In the discussion amongst enterprises, Mr Huy thinks that enterprises need to well investigate and grasp demand for goods that they have strengths in, goods that their partners are in need of. Furthermore, it is vital that they be fully aware of partners’ business practices and methodologies so that they can work out long-term import, export strategies.

 

Besides, trade promotion agencies of Vietnam and Pakistan need to accelerate co-operation in organising trade promotion programmes, exchanging lists of trade fairs and exhibitions annually held in the two countries as well as advertise and encourage enterprises to participate in such events.

 

Mr Huy also added that in view of recent saddening cases between Vietnamese and Pakistani enterprises, it is pivotal that enterprises adhere to legal regulations promulgated by each country and international commercial practices. “The Ministry of Trade and Industry will co-operate with relevant authorities to set up an information channel and punishment mechanism to timely prevent repetition of such cases in the future without doing harm to commercial relationship between the two countries,” he said.