"Thai food companies are very active to search for importers and exporters and to build international distribution channels. Therefore, by cooperating with Thai partners, Vietnamese companies will gain experience and take the initiative in expanding consumer markets," said Mr Petch Chinnabutr, President of the National Food Institute ( NFI) under the Ministry of Industry of Thailand at the Vietnam - Thailand Business Exchange Programme and food show in Ho Chi Minh City. The programme was jointly organised by the Vietnam Chamber of Commerce and Industry (VCCI) and NFI.
The Thai business delegation consisted of 20 food companies covering a broad range of food industry like confectionery, beverages, sauces and spices, agricultural product processing. The visitors to HCM City wanted to meet and exchange with Vietnam businesses to seek for suppliers, distribution agents and partnership opportunities in the food industry.
Delivering an opening speech, Mr Nguyen The Hung, Deputy Director of VCCI - HCM City Branch (VCCI HCM), said the traditional friendship relations between Vietnam and Thailand are increasingly strengthened in all fields. In June 2013, Vietnam and Thailand agreed to elevate their bilateral friendly and cooperation relationship to the strategic partnership level, thus opening up a new page in the bilateral relations. In addition, in the framework of ASEAN cooperation, many food products from the two countries are imposed zero tax when they are traded. Currently, Vietnam and Thailand are maintaining their rice export cooperation mechanism, promoting economic linkage and cooperation to tap the potentiality of the East - West Corridor. Especially, the both sides are keen to promote cooperation within the framework of regional and international cooperation forums like ASEAN, GMS, ACMECS and APEC.
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Commercially, Vietnam is now the second largest ASEAN trade partner and the ninth largest global trade partner of Thailand. Vietnam mainly imports machinery, equipment, spare parts, material plastics, household electrical appliances and components, gasoline, auto parts and computers from Thailand while exporting telephones, crude oil, steel, transport vehicles and spare parts, seafood, computers and machinery to Thailand. In the first five months of 2013, the bilateral trade value reached US$3.77 billion, of which Thailand earned US$2.41 billion and Vietnam took US$1.36 billion. The two nations target to bring the two-way trade turnover to US$15 billion in 2020, or an annualised rise of 20 percent.
As for investment, Thailand is the 10th largest out of 96 countries and territories with investment capital in Vietnam with 300 projects worth US$6.11 billion. Many projects have very big scales like Tipco, Amata and Siam Cement Group. Vietnam meanwhile has seven projects worth US$11.35 million in Thailand.
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In recent years, the two countries have boosted two-way merchandise trading. With various models and good quality, Vietnam’s exports to Thailand are much favoured by Thai consumers and Thailand's exports to Vietnam also gained similar response.
According to Mr Petch Chinnabutr, due to similarities in economic, social and climate conditions, Vietnam and Thailand have very favourable conditions for boosting cooperation in agriculture and food processing. In the coming time, Thai companies will their investments in food processing industry - a very strong industry of Thailand, into the ASEAN region. Accordingly, farms will be built in Vietnam to supply self-contained food processing chains. These farms will grow standard, quality-assured products for processing and exporting to other countries. In particular, Vietnam's Da Lat City is an ideal destination for Thai food investors.
Ms Panpimon Suwannaphongse, Consul General of Thailand in HCM City, said, as a powerful agricultural country, Vietnam can strengthen its global position if it can accelerate biotech development and application in food industry to increase food supply for the world. Particularly in Thailand, the food industry is a leading economic sector and major forex earner. Based on their abundant potentials, the food cooperation between Vietnam and Thailand will certainly bring economic benefits to both countries.
Hong Hanh
Vietnamese
