Vietnam - Africa - Middle East Business Forum: Promoting Trade and Investment Cooperation

In his opening speech, Dr Vu Tien Loc, President of Vietnam Chamber of Commerce and Industry (VCCI) said Vietnam has diplomatic relations with most countries in Africa and the Middle East. Vietnam, Africa and the Middle East have many complementary advantages for mutual development. In particular, Africa and the Middle East are the area with the ability to meet the demands of Vietnam on the supply of raw materials, fuel, diversified export markets, services, human resources, and investment.

 

According to Mr Loc, Vietnam – Africa and the Middle East trade and investment relations are increasingly expanding. In particular, trade between Vietnam and other countries in Africa increased from US$2.07 billion in 2009 to US$4.77 billion in 2011 and was estimated to reach US$1.81 billion in the first eight months of 2012. Vietnamese goods exported to Africa are mainly rice, textiles, footwear, electrical-electronic, mechanical, plastics, and chemicals ... Important export markets are South Africa, Egypt, Algeria, Mozambique and Morocco ... As of August 2012, Vietnamese enterprises had 17 investment projects to Africa with a total project value of nearly US$1.2 billion.

 

Vietnamese businesses are developing oil and gas investment cooperation in Algeria; promoting oil and gas exploration projects in Tunisia, Madagascar, Egypt and Sudan; besides, investing in Africa in the field of assembly, motorcycles; market research, looking for investment opportunities to assemble, manufacture of agricultural tools in Tanzania; and investing telecommunications service provider in the Mozambique.

 

In particular, Vietnam has a team of experts working in many African countries in various fields. There are about 8,500 Vietnamese labor experts in Libya, Algeria, Angola and 300 health, education, agricultural professionals in Angola, Mozambiquen and Angeria.

 

Trade between Vietnam and the Middle East countries have recently increased. In 2010, two-way trade turnover reached US$3.31 billion, in 2011 it reached US$5.17 billion and the first eight months of 2012 it was estimated at US$3.95 billion. The largest export market is the UEA, Turkey, Saudi Arabia, Iraq and Israel, with the main export items including mobile phones and accessories, computers, fiber types, seafood, rubber, tea, milk, pepper ... Vietnam imports mainly plastic materials, liquefied natural gas, metals, precious stones and precious metals products. On investment, the implementation of cooperation projects is processing smoothly, until August / 2012, Vietnamese enterprises have four investment projects in the Middle East with a total projects value of more than US$84 million.

 

According to Mr Le Dang Dung, Deputy General Director of Viettel Corporation, Chairman of Vietnam - Africa - Middle East Business Forum, Africa with one billion people and the Middle East with 260 million people are growing and potential markets for Vietnam. Africa and the Middle East countries have close diplomatic relations with Vietnam. Party and the Government of Vietnam has also identified strategies to promote economic relations with Africa and the Middle East. "The number of two-way trade turnover between Vietnam and Africa and the Middle East has demonstrated the relationship. However, these numbers are not commensurate with the potential and desire of the nation", Mr Dung said.

 

According to Mr Dung, there are now many Vietnam enterprises operating in Africa and the Middle East, but these are discrete activities with no cohesion or support each other. Enterprises lack information about the market, and have to fend for themselves so they may face a lot of risks. There is no bank support in those markets so it’s ineffective to operate, especially in repatriating profits. Human resource recruitment issues also face difficulty. Most of Vietnamese businesses engage in trade and sale, very few enterprises dare to invest directly in those markets. Notably, there are a huge number of businesses interested in Africa and the Middle East market but do not dare to have trade or investment cooperation.

 

He said, to the develop economic and investment relations to commensurate with the potential of Vietnam, Africa and the Middle East, the parties need to build a forum to become home for communities of Vietnam, Africa, the Middle East enterprises to provide information and encourage business cooperation and exchanges of trade and direct investment. The business community can access information through multiple channels such as website forums, the secretary board, experts, seminars, training and distribution of materials ...

 

He also said that the Forum is committed to be a bridge between the business communities, the transmission bridge of policies and laws of the Government to the business, at the same time conveying the contributions and proposals of business to the Government and relevant ministries; calling, encouraging and guiding potential enterprises interested in investment and setting business in Africa and the Middle Easts. Now leading corporations such as Viettel and CMS will play a leading role, supporting new businesses looking for opportunities for business startup.

 

However, he said, the most important thing is the support of the Government form the countries specifying into the policies, regulations, and in particular improving administrative procedures. Vietnam also needs to strengthen the state level visits to Africa and the Middle East.

 

During this term, the Forum aims to promote trade between Vietnam, Africa and the Middle East to US$ 11 billion by 2013, especially there will be more than double the number of direct investment projects in Vietnam to Africa and the Middle East and vice versa.