Czech Deputy Prime Minister and Foreign Minister Karel Schwarzenberg recently led a business delegation to Vietnam to explore the market and seek cooperation opportunities with local partners, distributors and agents. On this occasion, the Vietnam Chamber of Commerce and Industry (VCCI) organised the Vietnam - Czech Business Forum in Hanoi for over 50 Vietnamese companies and 21 Czech firms.
Czech participants are mainly engaged in wine production, road and bridge construction, oil and gas equipment production, thermal and hydro power production, wastewater treatment, information technology, measurement software, data processing, import and export, banking and finance.
Czech Deputy Foreign Minister Tomas Dub said the trade deficit between Vietnam and the Czech Republic is quite big. Currently, many Czech consumers are familiar with Vietnamese agricultural products, foodstuff and garments. However, the majority of Czech companies purchase Vietnamese products from suppliers in third countries like Sweden, the Netherlands and Denmark, because they do not know much about Vietnamese companies.
Dr Doan Duy Khuong, VCCI Vice President, said economic and trade ties between Vietnam and the Czech Republic have developed consistently in recent years. According to the General Department of Customs, the two-way trade turnover climbed from US$205 million in 2010 to nearly US$$220 million in 2011. In particular, the Czech Republic exports, worth US$36.5 million, were mainly machinery, equipment, tools, iron and steel, while Vietnam shipped apparel, footwear, vehicles and seafood worth US$183.4 million.
Although bilateral trade and investment relations have maintained fairly steady growth over the past years, the outcome has failed to meet the expectations and potential of both sides, said Mr Khuong. With flexible economic mechanisms, Vietnam can serve as a good doorway for Czech goods to enter the ASEAN market, while the Czech Republic will be an important partner and a gateway for Vietnamese goods to penetrate the European Union.
“Plenty of advantages remain untapped by the two countries. Many key exports of Vietnam have not gained a presence in the Czech market. Therefore, businesses of both countries will need to change their approach to each market in the coming time,” said Mr Khuong.
Mr Dang Hoang Hai, Director of the European Market Department under the Ministry of Industry and Trade, said the Czech Republic is a high potential market for Vietnam’s traditional exports. After the Czech Republic announced the inclusion of Vietnam on the list of 12 priority markets for foreign trade and Vietnam adds the Czech Republic to the list of high potential markets, companies taking part in the national trade promotion programme from 2011 afterwards will surely increase shipments to the Czech Republic if their projects and activities are effective. This market is also a stepping stone to enter other regional markets,” said Mr Hai.
In addition, according to experts, to grasp opportunities in the Czech Republic, Vietnamese enterprises need more practical support from the State to accelerate market surveys, join trade fairs and exhibitions, and open branches and representative offices in the Czech Republic to promote the popularity of products and seek partners.
In the framework of the business forum, the Department of Science and Technology of Can Tho City signed a cooperation agreement with the Czech Republic certification agency for electric equipment.
Vietnam and the Czech Republic will host the third meeting of the Intergovernmental Committee in June in Prague to foster trade and economic cooperation. On this occasion, VCCI will organise a Vietnamese business delegation to explore trade opportunities in the Czech market.
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