Latin and Africa - New Business Opportunities Opened
Over 100 businesses have accompanied President Tran Duc Luong and Prime Minister Phan Van Khai in their working visits to Latin America and Africa respectively. New opportunities have been opened up for Vietnamese businesses in those potential regions.
Important contracts signed
The business delegation accompanying President Tran Duc Luong to Brazil, Chile and Argentina consisted of 40 companies in such areas as banking, tourism, oil and gas, fisheries and agriculture.
During the visit, Vietnamese businesses signed several important contracts on investment, technology transfer and import and export. Vinacoal gained additional sales of coal worth US$3 million. Garment and footwear companies attained agreement on an export valued at US$2 million. Vietnam Steel Corporation reached agreement on import-export of materials and introduced investment project on exploiting and processing iron ore in Thach Khe (Ha Tinh). Vietnam airlines discussed with Brazilian partner on the purchase or renting of Embracer aircraft, and with Chilean partner on freight. Vinacafe discussed with Brazilian counterpart on the import of equipment and co-operation in investment and building of processing factory in Vietnam. Tan Thuan Export Processing Zone (Vinatex) decided to import timber worth some US$3 million to produce furniture for export. CMC Computer Company agreed to produce and supply low cost computers to the Latin American market. In particular, Vinamobi company signed contract to export mobile phones worth some US$16 million and together with Japanese and South Korean partners invest in CDMA project producing mobile phones in Argentina with an investment of US$10 million. The businesses will continue their contacts on the Internet to get more information on demand and supply.
VCCI President Vu Tien Loc, Head of Vietnamese business delegation said that during the visit, VCCI has discussed with Industry Union of Brazil, Chambers of Commerce and Industry of Chile and Argentina on the implementation of existing agreements and signing new agreements to boost the co-operation on trade and investment such as in the exchanges of information, consulting service, business missions, investment co-operation, as well as the organisation of business forum at APEC Conference in Vietnam in 2006.
According to Mr. Loc due to geographical distance, costly freight and transit restricts the competitiveness of the companies. However, the countries involved have a good impression and warm feelings toward Vietnam. Vietnamese businesses therefore have good opportunities to expand in those markets.
Opportunities open up
The visit to three African states : Morocco, Algeria and South Africa by Prime Minister Phan Van Khai and 60 Vietnamese companies was regarded as an exploration of a distant but potential market for economic co-operation. In addition to major agreements with the three countries, the Vietnamese business delegation headed by VCCI Vice-President Doan Duy Khuong had important meetings with business communities from those countries. According to Mr. Doan Duy Khuong, some 1,000 companies from the four countries have met and signed initial agreements on investment co-operation. For instance, Saigon Tourist has concluded with the South Africa Tourism Corporation to organise tourist delegations visiting each other’s countries; Vietnam Automobile Corporation and Algerian partner signed agreements on assembling heavy trucks in Vietnam for export and a joint venture factory to produce buses in Algeria; Saigon Jewel Corporation (SJC) reached initial agreement with some South African companies on the import of gold materials. Vietnamese companies have also concluded agreements on the export of products such as medicines, handicraft products, rubber, aquaproducts, tea, coffee, and garments.
Mr. Khuong also said that in the coming years, business communities from all four countries will develop bilateral co-operation such as the organisation of a business forum. Morocco will send a business mission to Vietnam in April 2005. VCCI and Morocco Chamber of Commerce and Industry have signed a co-operation agreement. Prime Ministers of Morocco and South Africa will visit Vietnam in May 2005 and will bring business delegations to seek investment in Vietnam and sign agreements on trade and investment. For its part, Algeria will also organise a Vietnam-Algeria business forum in March 2005. South Africa and Vietnam will organise a trade fair in Johannesburg in May and June 2005.
Some companies have achieved specific results. Mr. Hoang Tuan Khai, Director of General Import-Export Company I said that his company has reached agreement with Sibor Co on the exports to South Africa of rice, coffee, pepper and ceramics. The companies have also asked VCCI to provide market information and a list of partners and at the same time promote export to those countries.
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