The programme on inter-regional trade promotion between the Economic and Monetary Community of Central Africa (CEMAC), the West African Economic and Monetary Union (UEMOA) and three French speaking countries in the Mekong, namely Vietnam, Laos and Cambodia, was initiated by the Organisation Internationale de la Francophonie (OIF) in partnership with the International Trade Centre (ITC) in 2008. It has so far produced very good results. To learn more about the programme, Vietnam Business Forum interviewed Mr Imamo Ben Mohamed Imamo, Programme Senior Officer from ITC and Ms Angele Bonane, Programme Specialist from OIF, during their working visit to the Vietnam Chamber of Commerce and Industry (VCCI).
Could you talk about the programme on inter-regional trade promotion between CEMAC, UEMOA and French speaking countries in the Mekong, namely Vietnam, Laos and Cambodia?
Mr Imamo Ben Mohamed Imamo: The programme was initiated by the Organisation Internationale de la Francophonie (OIF) in partnership with the International Trade Centre (ITC) in 2008. It was launched in Siem Reap, Cambodia, through a business development forum that was organized in partnership with Ministry of Commerce of the Kingdom of Cambodia, providing opportunities for all 17 countries to go through trade flow analysis surveys conducted in each region to identify inter-regional trade opportunities among three francophone economic communities: two from Africa and the one from South-East Asia. At this event, the participants included representatives from private sector organizations, governments (mainly ministries of commerce) and trade support institutions as well as chambers of commerce and trade promotion organizations. Based on the outcomes of the surveys, they selected three main sectors: agri-business foods, textiles and clothing, and wood and wood products. At the forum, the approach followed by the countries with technical support from OIF and ITC was to focus on market surveys to better document the opportunities identified through the main sectors and also identify the key companies which might be invited to business fora. After these market surveys it was also decided that the main tools to encourage business transactions would include trade missions supported by OIF and ITC. At the forum, an action plan was designed by participants with the technical support of OIF and ITC. In November, 2008, the first buyer -seller meeting took place in Ho Chi Minh City which focused on rice, bringing together more than 120 companies from 17 countries to initiate business contacts and conclude transactions. At the end of the meeting, we estimated the total value of business transactions between firms at US$29 million. We organized another buyer –seller meeting on textile and clothing in Benin, Africa, followed by two successive buyer-seller events on wood and wood products in Ho Chi Minh City and in Congo Brazzaville, also supported by OIF and ITC. At the same time, along with VCCI and Vietnamese Ministry of Industry and Trade (MOIT), OIF and ITC also facilitated a number of trade missions conducted by Vietnamese firms in Africa. VCCI and MOIT also hosted a number missions led by African companies. In 2013, we plan to convene another series of trade missions with African firms coming to Vietnam and a number of Vietnamese companies travelling to Africa.
In January 2013, an inter-banking meeting was held in Hanoi, Vietnam with the attendance of 10 representatives from a number of African commercial banks from CEMAC, UEMOA and representatives from three Mekong countries, including a large number of Vietnamese bankers, to discuss how to facilitate payments of business transactions. What are the positive results after the meeting?
Ms Angele Bonane: In January 2013, banks from the 3 regions met and discussed how to remove difficulties in business transactions and methods of payment. Besides helping address the problems in business transactions among the three regions, we also held meetings to facilitate companies in initiating business contacts, provide information about the required standards of goods specific to each market. Following the success of this meeting, we wish to organize a similar meeting in Cameroon so that banks can meet, deepen their mutual partnerships and support increased business through strengthened trust.
Establishing relationships and strengthening the capacity of national trade promotion organizations is important. What activities on this topic does the programme have?The programme was initiated by the Organisation Internationale de la Francophonie (OIF) in partnership with the International Trade Centre (ITC) in 2008. It was launched in Siem Reap, Cambodia, through a business development forum that was organized in partnership with Ministry of Commerce of the Kingdom of Cambodia, providing opportunities for all 17 countries to go through trade flow analysis surveys conducted in each region to identify inter-regional trade opportunities among three francophone economic communities: two from Africa and the one from South-East Asia. At this event, the participants included representatives from private sector organizations, governments (mainly ministries of commerce) and trade support institutions as well as chambers of commerce and trade promotion organizations. Based on the outcomes of the surveys, they selected three main sectors: agri-business foods, textiles and clothing, and wood and wood products. At the forum, the approach followed by the countries with technical support from OIF and ITC was to focus on market surveys to better document the opportunities identified through the main sectors and also identify the key companies which might be invited to business fora. After these market surveys it was also decided that the main tools to encourage business transactions would include trade missions supported by OIF and ITC. At the forum, an action plan was designed by participants with the technical support of OIF and ITC. In November, 2008, the first buyer -seller meeting took place in Ho Chi Minh City which focused on rice, bringing together more than 120 companies from 17 countries to initiate business contacts and conclude transactions. At the end of the meeting, we estimated the total value of business transactions between firms at US$29 million. We organized another buyer –seller meeting on textile and clothing in Benin, Africa, followed by two successive buyer-seller events on wood and wood products in Ho Chi Minh City and in Congo Brazzaville, also supported by OIF and ITC. At the same time, along with VCCI and Vietnamese Ministry of Industry and Trade (MOIT), OIF and ITC also facilitated a number of trade missions conducted by Vietnamese firms in Africa. VCCI and MOIT also hosted a number missions led by African companies. In 2013, we plan to convene another series of trade missions with African firms coming to Vietnam and a number of Vietnamese companies travelling to Africa. In January 2013, banks from the 3 regions met and discussed how to remove difficulties in business transactions and methods of payment. Besides helping address the problems in business transactions among the three regions, we also held meetings to facilitate companies in initiating business contacts, provide information about the required standards of goods specific to each market. Following the success of this meeting, we wish to organize a similar meeting in Cameroon so that banks can meet, deepen their mutual partnerships and support increased business through strengthened trust.
Mr Imamo Ben Mohamed Imamo: In ITC we do have dedicated sections which provide technical support to strengthen the capacity and capability of trade support institutions to deliver better services to exporting SMEs. One of the strategic objectives of ITC is to foster the capacity of those Trade Support Institutions (TSIs) to be active multipliers of our knowledge services in the field. This is why under this technical section we do have several pillars which focus on improving the TSIs’ performance. For that, we assess and benchmark their operations and services and provide them with developmental recommendations. Essentially we want these TSIs to become stronger in delivering value-based services to exporters, as well as having the capacity to guide potential new exporters.In ITC we do have dedicated sections which provide technical support to strengthen the capacity and capability of trade support institutions to deliver better services to exporting SMEs. One of the strategic objectives of ITC is to foster the capacity of those Trade Support Institutions (TSIs) to be active multipliers of our knowledge services in the field. This is why under this technical section we do have several pillars which focus on improving the TSIs’ performance. For that, we assess and benchmark their operations and services and provide them with developmental recommendations. Essentially we want these TSIs to become stronger in delivering value-based services to exporters, as well as having the capacity to guide potential new exporters.
Another key pillar is a business generation programme based on which the OIF and ITC partnership has been set up. The programme uses a specific methodology which supports South-South trade and cooperation. We also have a programme to support foreign trade representatives. We build the capacities of trade attachés on better representing the commercial interests of their countries while posted abroad.
As internationalization of companies became the new standard for commerce, it is difficult for a single TSI to fulfil the needs of exporters. There is an urgent need for TSIs to consider partnering with other TSIs, pooling together their resources for better results. So our main pillars of capacity building are networking, benchmarking and strengthening the capacities of foreign trade attachés.
What is your assessment about Vietnam as a potential partner and market in your region, and what have you done to support Vietnam to enter these markets?
Ms Angele Bonane: We have tried to promote business exchanges among the three regions and have organized many field trips and seller/purchaser meetings to increase trade exchanges between Vietnamese companies and those from French speaking countries. Additionally, our programmes have helped strengthen the solidarity among francophone countries. Vietnam is among the countries that benefit from a number from OIF technical assistance programmes. We have led a number of Vietnamese companies to such countries in CEMAC and UEMOA as Ivory Coast, Cameroon, Central African Republic, Burkina Faso, Mali, Senegal, Gabon and Guinea Bissau. We wish Vietnamese companies would be able to set up representative offices in sub Saharan Africa, just as Tai Anh Wood Processing Company which recently opened a representative office in Gabon.
VCCI plays an important role, even more important than other chamber s of commerce, in our programmes. VCCI is our reliable information provider and key private sector partner. Through its trade missions to Africa, VCCI has signed many MOUs with such countries as Burkina Faso, Senegal, Congo, Central African Republic, Cameroon and Benin. They are the foundations for further institutional cooperation between Vietnam and those countries.
Mr Imamo Ben Mohamed Imamo: One of the main objectives of this programme is to give Vietnamese companies and those from CEMAC and UEMOA the opportunities to know each other and initiate business. Originally, there was a misperception that they could not do business together, because CEMAC and UEMOA are geographically very far from Vietnam. However, the fact is that Africans consume rice from Vietnam, which is supplied by traders and intermediates based in Europe. The main objective is to facilitate direct business between Vietnamese companies and their partners in CEMAC and UEMOA. We know Vietnam consumes timber from Africa. Instead of importing it via intermediates based in Singapore, Vietnamese wood importers can go to Congo, Cameroon or Gabon to meet partners in Africa and initiate direct contracts. Today, we are very happy that we have been strongly supported by our Vietnamese partners, VCCI and MOIT. They have done a good job in supporting this joint initiative of OIF and ITC and we are more than grateful to VCCI and MOIT for their very valuable contributions to this project, helping us achieve concrete results that go beyond our original expectations. VCCI now has a Vietnamese exporter roster of companies which concluded business transactions with partners in Benin, Cameroon, Congo, etc. But there are still challenges, for example, in information exchange. Many African companies do not know what they can buy from Vietnam; and many Vietnamese firms don’t know much about what business opportunities are available to them in these 14 countries in Central and Western Africa. So our common challenge, today, is to facilitate further the exchange of business information and support investment and the transfer of know-how and technology among the three regions.
One of the main objectives of this programme is to give Vietnamese companies and those from CEMAC and UEMOA the opportunities to know each other and initiate business. Originally, there was a misperception that they could not do business together, because CEMAC and UEMOA are geographically very far from Vietnam. However, the fact is that Africans consume rice from Vietnam, which is supplied by traders and intermediates based in Europe. The main objective is to facilitate direct business between Vietnamese companies and their partners in CEMAC and UEMOA. We know Vietnam consumes timber from Africa. Instead of importing it via intermediates based in Singapore, Vietnamese wood importers can go to Congo, Cameroon or Gabon to meet partners in Africa and initiate direct contracts. Today, we are very happy that we have been strongly supported by our Vietnamese partners, VCCI and MOIT. They have done a good job in supporting this joint initiative of OIF and ITC and we are more than grateful to VCCI and MOIT for their very valuable contributions to this project, helping us achieve concrete results that go beyond our original expectations. VCCI now has a Vietnamese exporter roster of companies which concluded business transactions with partners in Benin, Cameroon, Congo, etc. But there are still challenges, for example, in information exchange. Many African companies do not know what they can buy from Vietnam; and many Vietnamese firms don’t know much about what business opportunities are available to them in these 14 countries in Central and Western Africa. So our common challenge, today, is to facilitate further the exchange of business information and support investment and the transfer of know-how and technology among the three regions.
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