Ukrainian Market: Much Potential for Vietnamese Businesses

Vietnam and Ukraine have signed 20 agreements on trade and economic cooperation, which include many important areas such as: maritime transport, air transport; culture; education and science, investment promotion and avoidance of double taxation. According to representatives of the Europe Market Department of the Ministry of Industry and Trade, Ukraine is a promising market and will create favourable conditions for Vietnamese businesses to come to this market. of double. According to representatives of the Europe Market Department of the Ministry of Industry and Trade, Ukraine is a promising market and will create favourable conditions for Vietnamese businesses to come to this market.

According to statistics, since 2000, two-way trade turnover between Vietnam and Ukraine has increased stably. In 2010, the trade turnover between the two countries reached US$255.7 million, of which Vietnam's exports to Ukraine totalled US$115.7 million and imports from Ukraine totalled US$140 million. Export turnover between the two countries in 2011 reached almost US$300 million. Vietnam mainly exports to Ukraine products such as seafood, vegetables, cashew nuts, textiles and imports: Wheat, chemicals, fertilizers and machinery. However trade relations between Vietnam and Ukraine are still not commensurate with the potential and desire of the two countries.

 

On investment, Ukraine has invested in six provinces of Vietnam. By the end of 2011, investors of Ukraine had 10 valid projects in Vietnam. Ukraine possesses total registered capital of US$23.273 million, ranking 59th out of 92 countries and territories investing in Vietnam. So far, Ukraine has invested in six industries of Vietnam, in which the transport logistics sector ranks first, with only one project but total registered project capital of US$ 15.66 million, followed by the processing industry, manufacturing with two projects for total registered capital of US$5.73 million; and three science and technology projects with a total registered capital of US$ 1.45 million.

 

Ukrainian companies invest in Vietnam in two basic forms which are joint venture and the 100 percent foreign ownership. In particular, joint ventures attracted six projects and 100 percent foreign ownership attracted four. Some projects such as: Lotus Joint Venture Project, VIDPOL casting – engineering joint venture company; and Song Da Consulting JSC with the total registered capital of US$854,667. Currently, Vietnam has five investment projects in Ukraine with total investment capital of US$2,987,495 in 100% Vietnam-owned projects.

 

Representatives of the Ukrainian Embassy in Hanoi said that the relationship between the Vietnam and Ukraine markets is a mutual complementary relationship; there is no element of competition and antagonism, especially in economic benefits. All efforts to develop market share in the two regions will help the enterprises of the two countries integrate with the world economy. Accessing Ukraine is a chance for Vietnamese businesses to develop business activities in Eastern Europe and is an opportunity for Ukrainian businesses to expand markets in Southeast Asia.

 

Giving advice to Vietnamese enterprises, representatives of the Embassy of Ukraine in Hanoi emphasized that export options, including setting up branches bearing the name of a Ukrainian legal entity importing, is a reasonable plan. A business can use completely legal ability to enter the market, to control the risk at early stage market development; on the other hand, an enterprise can shorten the time to explore the market thanks to the active activities of its own branch on foreign territory.