Opportunity to Explore Panama Market

Speaking at the meeting, VCCI President Vu Tien Loc said Vietnam was the first country to sign the Protocol to the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal. In the process of international development and integration, Vietnam always attaches importance to promoting friendly cooperation with Latin American countries, including key partner Panama.

 

"Together with good development of political relations, trade and economic cooperation between the two, Vietnam and Panama have made significant progress in the recent years. Bilateral trade turnover increased from US$50 million in 2005 to US$246 million in 2011 and US$120.3 million in the first six months of 2012. The two countries have the potential and demand for cooperation in various fields such as shipping, agriculture, and traditional medicine. On investment, Panama now has nine projects with a total investment capital of US$51 million in Vietnam involved in real estate, processing, manufacturing, transportation and warehousing, ranking 52 out of 96 countries and territories with direct investment in the country. In spite of having no investment project in Panama, Vietnam now has a company opening a representative office and is operating it well in the Colón Free Trade Zone,” Dr Loc said.

 

However, he said, despite significant results in business partnerships, they are still below the available potential and desires of both sides. "No one else but businesses will play a leading role in promoting trade and economic cooperation between the two countries and strengthening and developing the bilateral friendly relations,” added Dr Loc.

 

Panama President Ricardo Martinelli Berrocal, said Panama now has the Latin America’s largest Colon Free Trade Zone. Through the Panama Canal, businesses can exchange commodities with all the countries in the Caribbean and Latin America regions and elsewhere. Panamanian businesses want to cooperate with Vietnam to gain experience in rice and coffee production, while it is always ready to exchange, cooperate and share with Vietnam in the field of infrastructure construction for ports and wharves.

 

He affirmed that Panama is willing to be a door for Vietnam to enter the Latin American market with a market of 600 million people. He also hopes that Vietnam, as the world’s largest rice exporter and second largest coffee exporter, can easily dominate this market.

 

In 2014, Panama will have the largest airport in Latin America, which offers the best conditions of tax, customs and infrastructure for foreign businesses. In addition, Panama is expanding the canal to support larger ships and facilitate shipping, import and export.

 

To attract foreign companies, Panama has open policies and provides the most favourable conditions for investors. Currently, Panama is simplifying administrative procedures concerning the establishment of representative offices and free overseas transfer of profits. In addition, the right to business freedom of every entity is guaranteed. There is no discrimination with foreigners.

 

According to Panama Foreign Minister Juan Carlos Varela, obtaining the licence for opening a representative office or a branch in Panama takes only 1 - 2 days. Businesses only need to register over the internet. If they open an office in the Colon trade zone, they will be issued one license, and if they open it outside the zone, they will be granted a code. For the time being, Panama has many law offices in several Southeast Asian countries, where Vietnamese enterprises can contact for consultancy.

 

In particular, in order to penetrate the Panama market successfully, Vietnamese businesses must have plans and strategies for product marketing and branding in different forms. The most effective way is to participate in trade fairs and exhibitions in Panama.

 

According to Vietnamese Industry and Trade Minister Vu Huy Hoang, to facilitate businesses to boost exports and investments to Panama, the Ministry of Industry and Trade is willing to support and create favourable conditions for them to promote investment and join trade fairs and exhibitions as well as provide necessary information for Vietnamese and Panamanian companies.