"The two governments of Vietnam and Iran should promote cooperation on trade and investment based on the platform of common interests. Iran is always willing to be the “bridge” that helps Vietnam’s commodities to come across to the Central African region." This is statement of H.E. Mr Hossein Alvandi Behineh, Ambassador of the Islamic Republic of Iran to Vietnam made at the conference "Opportunities for Vietnam - Iran cooperation and business meeting" held recently in Ho Chi Minh City. The conference was organised by the Vietnam Chamber of Commerce and Industry- Ho Chi Minh City Branch (VCCI – HCM) in collaboration with the Iranian Embassy in Vietnam.
Iran and Vietnam established diplomatic ties on August 4, 1973. By now, after 40 years, the friendly and cooperative relations between the two countries have been growing substantially. In addition to regular high-level visits, the Vietnam - Iran Friendship Society was set up in September 2009. Both governments are well aware of the importance of economic development. The two countries have concluded many important agreements: General agreement on economic, cultural and technology sciences cooperation in 1993; Trade Agreement (including the MFN status), Sea Transport Agreement in 2002; Memorandum to expand and diversify economic cooperation and bilateral trade in 2007. VCCI also signed a cooperation agreement with the Iran Chamber of Commerce, Industries and Mines in December 2009 in Hanoi, during the 6th session of the Vietnam-Iran Intergovernmental Economic and Trade Committee. All these agreements have created a strong foundation for the two countries to promote trade and bilateral investment.
According to Director of VCCI - HCM Vo Tan Thanh, current trade with large markets such as the U.S., the EU is facing many obstacles, so Vietnam enterprises should strengthen and expand cooperation with other partners, Iran included. Iran is a potential market with many commodities of comparative advantages that meet Vietnam’s demand. On the other hand, Vietnam also is a large market for Iranian businesses to invest and exploit.
"To further enhance bilateral economic ties, it’s urgent for the two countries to remove barriers, focused on the aspects of finance and banking. To do this, in addition to macro-solutions such as accepting payment by convertible currencies, adopting goods-for-goods exchange, choosing Dubai as trade location. Apart from the governments’ efforts, the two business communities should also be more proactive in studying the market, updating information and capturing business opportunities," suggested Mr Thanh.
Even though highly appreciated Vietnam - Iran relations, Ambassador Hossein Alvandi Behineh also pointed out one of the current barriers is that the two countries’ businesses do not enough information about each other's markets, so Vietnam couldn’t realise the full potential of Iranian market and vice versa. To remove this bottleneck, the two sides needed to promote high-level visits because the governments play a major role in trade-boosting. In addition, the two countries should also organise more trade fairs and exhibitions to help enterprises of both sides promote their products. The exchanges at exhibitions, trade fairs and workshops not only had a profound and far-reaching effect but also play an important role in connecting Iran and Vietnam businesses more closely.
"Iran's Embassy in Vietnam will create the most favourable conditions so that the two countries' businesses can effectively take up every opportunity to do business together. More than that, Iran is willing to be the “bridge” that helps Vietnam’s commodities comes across to the Central African region," affirmed Ambassador Hossein Alvandi Behineh.
* On trade cooperation, Iran is in demand and importing from Vietnam many advantageous commodities such as rubber, rice, agricultural products (coffee, pepper), seafood, footwear, wood products, etc. In reverse, Vietnam currently imports from Iran products such as asphalt, cotton, metals, sulfur, leather. From 2001 to 2011, bilateral trade had increased nearly 30 times, from US$6.5 million to nearly US$185 million. In the near future, Iran hopes to raise this figure to US$500 million.
In the investments area, as of the end of 2012, Iran had one investment project in Vietnam with a total investment of US$10,000. For its part, PetroVietnam has signed a contract of exploring Danan oil block with a total investment of over US$115 million and the MOU on mining projects worth about US$1 billion.
Thanh Tan
Vietnamese
