Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), hosted a meeting with a business delegation led by Mr M Anis Ud Dowla, Former President of Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI). The visit concurred with the delegation’s attendance to the Vietnam Expo 2012 - a major trade fair event in the country.
All visiting Bangladeshi businesses are keen to boost understanding and cooperation with Vietnamese partners. On this occasion, Mr M Anis Ud Dowla, asked Vietnamese companies to cooperate with Bangladeshi businesses in the areas of common interest like apparel, textile, shipbuilding, and apparel - the strength of Vietnam. Vietnam can outsource Bangladeshi hire workers.
Mr M Anis Ud Dowla also proposed VCCI to set up a Vietnam - Bangladesh Business Council in order to strengthen economic and investment cooperation between the two countries. VCCI President Vu Tien Loc promised to submit this proposal to the Vietnamese Prime Minister.
According to VCCI, trade relations between Vietnam and Bangladesh are modest but progressive. The two-way trade turnover increases year after year, with US$47.4 million in 2007, US$64.7 million in 2008, US$82 million in 2009, and US$288 million in 2010. Notably, the value soared 67.9 percent year on year to US$483.5 million in 2011. Of the sum, Vietnam earned US$442.5 million from exports to Bangladesh, up 74.8 percent, and spent US$41 million, up 17.65 percent.
Shipments of key commodities steadily expanded. Particularly, rice value climbed 53.35 percent, fabrics advanced 40.19 percent, and clinker surged 715.61 percent. Notably, clinker was started to be shipped to Bangladesh in 2010, its value amounted to US$116 million. New products like fertiliser, steel and starch gradually grip footholds in Bangladesh. Declining exports to this South Asian market included iron and steel (down 18.35 percent), machinery, tools and accessories (21.15 percent), and plastic materials (24.96 percent).
Rice remained the key export in 2011. The MOU signed by the Government of Vietnam and the Government of Bangladesh has effectively promoted exports. However, with the Bangladeshi Government’s recent announcement on rice halt till June 2012 at the back of increasing domestic production caused difficulties for Vietnamese rice exporters in late 2011 and early 2012.
Pharmaceuticals, textile materials, leather - footwear, iron and steel are key imports from Bangladesh. Some products had high growth, including pharmaceuticals (up 72.92 percent), yarns (40.74 percent), and tobacco materials (67.43 percent). Most imports from Bangladesh are input materials for production.
According to statistical analysis, Vietnam’s export prospects to Bangladesh are still optimistic in 2012. Clinker shipment is forecast to grow up robustly as Vietnamese cement producers continue signing new contracts to send this product to this market. However, the rice export will face a lot of difficulties because the Government of Bangladesh has ordered to halt rice import till the middle of 2012 and then resume import but from neighbouring countries like Pakistan and India rather than Vietnam.
In general, the economic cooperation between Vietnam and Bangladesh has not developed strongly. The two sides are striving to bring the economic and commercial cooperation as well as on other fields like agriculture, fishery, industry, handicraft, finance, banking, culture, education, tourism and health to match political relations.
Up to now, Vietnam and Bangladesh have signed some agreements such as Agreement on Aviation Transportation (1993), Agreement on Economic and Scientific and Technological Cooperation (1994), Trade Agreement (1996), Agreement on Establishment of the Joint Commission for Economic, Trade, Cultural, Scientific and Technological Cooperation, Agreement on Double Taxation Avoidance (2004), Agreement on Investment Promotion and Protection (2005), Protocol on Cooperation in Agriculture (2004), Protocol on Cultural Exchange Programme for 2004-2007 (2004), etc. VCCI also signed an agreement on cooperation with the Federation of Bangladesh Chamber of Commerce and Industries in 1997.
Quynh Anh
Vietnamese
