Africa and the Middle East have large oil and gas reserves, developed biological and petrochemical technologies and high demand for imports which are key exports of Vietnam. These two regions have emerged as high potential markets and offer significant opportunities for Vietnamese businesses. This was an overarching topic of the “Business and investment prospects with African - Middle East partners” seminar held in Hanoi on June 25.
Vietnam and African - Middle East countries established economic cooperation relations very soon. So far, Vietnam has set up trade relations with all 70 countries in Africa and the Middle East. This has provided an opportunity for Vietnam's goods to penetrate and increase market shares in the Middle East, particularly food, foodstuff, agricultural products, seafood and consumer goods.
Vietnam’s exports to Africa and the Middle East have been diversified. Apart from agricultural products such as rice, coffee, pepper, desiccated coconut, high-valued industrial goods like computers, electronic devices, cell phones, machines, equipment, spare parts, gems and precious metals have been also shipped to these markets.
On investment, Vietnam had 18 projects in 11 African countries with a total investment capital of US$728.3 million as of 2013. Viettel Group invested US$400 million in telecom projects in Mozambique and Cameroon while Petro Vietnam Group injected more than US$300 million in oil and gas exploration and production in Algeria, Congo and Madagascar. Private businesses invested in manufacturing roofing materials, motorcycles, apparels and electronics devices in Angola, South Africa and Ghana.
Besides, African countries also increased significantly investment capital in Vietnam. Nine African countries, including Mauritius, Seychelles, Nigeria and Maurice, invested a total of US$185.63 million in 72 projects in Vietnam, focusing on industrial processing, manufacturing, wholesaling, retailing, repairing, science and technology fields.
In addition, as the third largest re-export market in the world, Dubai - one of seven emirates of the United Arab Emirates (UAE) - is the gateway to the UAE, the Middle East and Africa. In 2013, the UAE became the largest export market of Vietnam in West Asia. Vietnam enjoyed a trade surplus of US$3.81 billion with this market in 2013, up 715 percent over 2010, with key exports being phones, computers, electronic products, apparels, pepper and footwear.
Pham Trung Nghia, Deputy Director of Africa, West Asia and South Asia Markets Department under the Ministry of Industry and Trade, said these markets have great demand and Vietnamese merchandise has established its standing and prestige with consumers here. In addition, Vietnam has a strong force of experts in many African countries. Now, some 8,500 Vietnamese experts are working in Libya, Algeria and Angola and 300 are working in health, education and agriculture sectors in Angola, Mozambique and Algeria. In addition, Vietnam has joined in many cooperation programmes with African countries, international organisations or third countries.
Remarking on measures to improve market access and expansion in Africa and the Middle East, Dr Tran Thi Lan Huong, a representative from the Middle East and Africa Journal, said that Vietnamese enterprises need to identify steps and fields to make breakthrough approaches like oil and gas cooperation, production and processing; information and communication cooperation; coffee, cashew and seafood processing; trade development; infrastructure construction; cement and brick production, etc.
Huong said that Vietnam should focus on Egypt, Algeria, South Africa and the UAE to make breakthrough penetrations into Africa and the Middle East because Egypt and Algeria will unlock the ways into North Africa, South Africa opens the ways to sub-Saharan Africa, and the UAE expands the penetration into the Gulf Cooperation Council (GCC).
Besides, to develop in these markets, Vietnamese businesses must actively take part in and carry out trade promotion activities, market surveys and exhibitions, build suitable market entry strategies; manufacture products of appropriate quality, specifications and designs in accordance with regulations on quality and environmental standards as well as consumer tastes and habits in specific markets.
Ha Vu
Vietnamese
