VBD - Address for Trade Exchange between Vietnam and Australia Enterprises

VBD - Address for Trade Exchange between Vietnam and Australia Enterprises

Last year’s total two-way goods exchange value between Vietnam and Australia reached AUD 2.726 billion. Of this figure, AUD 2.3 billion went to Vietnam’s export and AUD 436 million, Australia’s export. Accounting for 7.6 per cent of Vietnam’s export turnover in 2002, Australia is considered the third largest export market for Vietnam, behind the US (15.2 per cent) and Japan (14.9 per cent).

Australia is a large market with a population of 19.4 million people, whose per capita income is put at US$28,000 per annum. The country has a high consumption and import demand. Last year Australia’s import turnover was put at US$82.91 billion. Therefore, Australia is a market of great potential for Vietnamese exporters.

Apart from some of its major enterprises, Vietnam has about 29,000 small and medium-sized enterprises involved in import and export activities, accounting for 25 per cent of the country’s export value. This sector has great potential for export. However, most enterprises still face difficulties in their import and export activities, especially in entering new markets, learning consumers’ tastes, contacting partners, accessing information about the trade customs and policies of Australia due to a constraint in information about the country. In fact, Vietnamese enterprises have concentrated further on other major markets, such as the US, Japan, the Republic of Korea and the EU, with fierce competition against rivals they don’t yet have enough strength to overcome. Meanwhile, they have yet to pay enough attention to such a potential market as Australia.

In this context, the Vietnam Business Development Company (VBD) was set up to become an effective trade promotion channel for small and medium-sized enterprises from both Vietnam and Australia. Established by individuals who have spent many years studying and doing business in Australia, VBD can provide useful information about the market, help enterprises seek partners and provide different trade services for its customers. VBD’s great advantage is its focus on exploiting information about only the Australian market with a representative office in the country and co-operation with local entrepreneurs.

With high quality services, VBD has set a target of helping small and medium-sized enterprises in those fields with great export potential, such as handicraft, seafood, textile and garment, footwear, tea and coffee. At the same time, VBD introduces Vietnamese importers to Australian enterprises in the mining and energy industries, high-tech, machinery, wine, wheat, and flour. Specialising in trade promotion, VBD has co-operated with domestic and international transportation firms to provide consulting and convenient delivery services.

Also, the company provides education and emigration services which are closely linked to trade activities. It has consulting experts, licensed by the Australia Emigration Department, to take on the services. So far, VBD has become the only Vietnamese company to provide such services.

Now two years in operation, VBD’s services have proven themselves effective for enterprises, helping them increase their business capability, expanding their market and minimising costs and time for them. So far, about 130 enterprises, namely Arterport, Vina Mine, Bika Cafe and Hung Quang Flour, have entered the Australian market via VBD. In the coming year, apart from promoting its services, VBD will continue to diversify its business activities to exploit its strength, directly exporting some goods which are favourites in Australia.

With these orientations, VBD has become a reliable source for enterprises in both Vietnam and Australia. Such enterprises as VBD will play an important role in Vietnam’s integration into the world markets as trade activities heat up.