The Forum for Economic Cooperation between Vietnam and Middle East - North Africa Partners recently took place in Hanoi. This was considered an important external economic event to open up opportunities for new cooperation with the Middle East and North African countries - territories with strategic locations and rich oil and gas resources.
Laying emphasis on the importance of handshaking with the Middle East - North African nations, Vietnamese Prime Minister Nguyen Tan Dung said that, after more than 30 years of implementing the opening and reform strategy, Vietnam has now become a middle-income developing country. Vietnam is also an attractive investment destination where the political environment is stable, the market with a population of 90 million is richly potential. It is also situated in the dynamically developing Asia - Pacific region - the growth engine of the world economy. Middle East - North African nations connect three continents, namely Asia, Europe and Africa, whose abundant economic strengths and potentials are yet to be fully tapped. The Prime Minister said that Vietnam wants to deepen cooperation with Middle East - North Africa nations in the fields they are strong at.
Drastic measures needed
Vietnamese Deputy Minister of Planning and Investment, Nguyen Van Trung, said, in the context of ongoing quick international economic integration and connectivity in both East Asia and the Middle East - North Africa, with their supplementary potentials and strengths, Vietnam and the Middle East - North African nations have many opportunities for further economic cooperation development.
Investment is a bright spot as many companies are investing many projects in Vietnam like Nghi Son oil refinery and petrochemical complex, Long Son oil refinery and petrochemical complex, Ha Long Star Hotel, Hiep Phuoc Premier Container Terminal in Ho Chi Minh City, and Zamil Steel pre-engineered steel plant.
Several Vietnamese companies have also carried out investment projects in the Middle East and North Africa. One notable example is oil and gas exploration and production project invested by Vietnam National Oil and Gas Group (PetroVietnam) in Algeria. Currently, around 26,000 Vietnamese are working on infrastructure development projects in Middle East - North Africa countries.
According to statistics, economic and commercial cooperation between Vietnam and Middle East - North Africa countries has made significant progress in recent years. Specifically, trade turnover between Vietnam and the region totalled US$7.4 billion in 2012, an 878 percent increase over 2002. Annual trade turnover with certain nation partners even exceeded US$1 billion.
Although trade turnover between Vietnam and the Middle East - North Africa region has rapidly expanded in recent years, the performance is beyond the potential and falls short of expectations of both sides, said Vietnamese Deputy Minister of Industry and Trade, Le Duong Quang. So, in the coming time, the both sides need to apply solutions to boost growth, complete legal framework, regime and policy to facilitate trade exchange and investment cooperation of enterprises.
Vietnam and Middle East - North Africa countries need to quickly sign the Agreement on Investment Promotion and Protection, the Agreement on Double Tax Avoidance, and agreements on cooperation in banking, finance, aviation, shipping, energy and other fields; strengthen cooperative relations between ministries, State agencies, chambers of commerce and industry, business associations; actively promote bilateral cooperation through the Joint Committee of Vietnam and Middle East - North Africa countries; and bolster trade - investment cooperation to ensure security food and energy security. Due to distant geographical location, the two sides should intensify information and communication activities to facilitate enterprises to approach partner markets.
Anh Phuong
Vietnamese
