Republic of Mozambique Calls for Investment from Vietnam

Currently, Mozambique is one of the 10 largest African export markets for Vietnam. In 2012, Vietnam's exports to Mozambique valued US$85.67 million, up 20 percent over 2011, of which rice brought home US$32.5 million; cement, US$12.6 million; steel products, US$$8.6 million; electric wires and cables, US$8.4 million; and machines and tools, US$5.1 million. In 2013, Vietnam's export to Mozambique is forecast to reach US$100 million.

 

As of March 2013, Vietnam had 742 overseas investment projects in 59 countries and territories around the world with a total registered capital of US$15.5 billion and it invested US$345 million in Mozambique, the eighth largest amount in Africa. However, Mozambique has not had any investment project in Vietnam.

 

Mr Nguyen The Hung, Deputy Director of VCCI - HCM, said Mozambique is actually a potential market for Vietnamese exports and a favourable gateway for Vietnamese exporters to penetrate southern African markets. But, bilateral trade relations remain very modest and fall short of expectations and potentials of the two countries. Therefore, further promoting two-way economic cooperation is urgently necessary. This requires not only efforts from the two governments, but also the response and active participation of the two business communities.

 

Ambassador of the Republic of Mozambique to Vietnam, Mr Gamilied Munguambe, said the current major concern of Vietnam and Mozambique is how to lift the level of economic relations to that of political - diplomatic relations. Vietnam and Mozambique signed the Trade Agreement in 2004 and Agriculture Agreement in 2007. The two sides are currently in negotiation on a Double Tax Avoidance Agreement. Once this agreement is signed, it will provide a lot of opportunities for promoting investment and trade relations for the two countries.

 

Mr Aiuba Cuerenia, Planning and Development Minister of the Republic of Mozambique, also hoped that the two countries will boost trade and investment with practical actions. He said extractive industries like coal and natural gas have made a breakthrough in Mozambique’s economic development. Apart from abundant natural resources, Mozambique also holds a plenty of advantages in agriculture, forestry, fisheries, oil, gas and mineral. However, in agriculture and fishery, despite rich potential, Mozambique just produces, not yet processing. Hence, this will be a great opportunity for Vietnamese businesses to invest in the agricultural and fishery sector in Mozambique.

 

He stressed that "Not only agriculture, Mozambique also welcomes Vietnamese investors to invest in food processing, seafood processing, construction, infrastructure, finance - banking, garment - textile, and especially tourism and civil aviation. Mozambique is reforming its economy; thus, opportunities for investment cooperation with foreign companies, including Vietnam, are huge.”

 

Speaking of the difficulties that Vietnamese companies may face when they invest in Mozambique, Mr Lourenco Sambo, Director of Mozambique Investment Promotion Centre, said these problems are being actively removed by the Government of Mozambique through its efforts to build a legal framework and policies on foreign investment incentives.