Iran Can Provide Economic Advantages for Vietnam to Facilitate Trade with Middle East

Iran and Vietnam have vast political, economic, cultural and scientific potentials and capabilities for cooperation which still haven't been tapped by the two countries.

In the past four decades, both countries have enjoyed a close cooperation and cordial traditional ties based on mutual respect and understanding. Exchange of many high-ranking visits has taken place so far and a great number of agreements and memoranda of understanding have been signed to strengthen our bilateral relations which reflect the desire of the leaders and peoples of our two countries.

 

In economy and trade, we successfully organized the 8th Joint Commission for Trade and Economic Cooperation in Hanoi in 2013. In 2010, trade volume between Iran and Vietnam reached US$144 million, in 2011: US$186 million and in 2012: US$316 million. In 2013, value of Iran's export to Vietnam was US$207 million (based on Iranian custom's data) and import value was 58 million dollars (based on Vietnamese custom's data). According to this fact, Vietnam became Iran's biggest export market in ASEAN in 2013. These figures have reflected approximately year-on-year increase in trade cooperation but the two sides will strive to increase bilateral trade turnover to a higher level of US$1 billion per year in the coming time. 

 

In my opinion, the two countries can cooperate in the following fields like exporting agriculture and fisheries products, garments, sport shoes, hand-phones and etc to Iran and importing Iranian oil products, petrochemicals, urea, asphalt, chemical products, agricultural and fisheries products, as well as cooperation in fields like road and construction, advanced technology and research in various fields of science.

 

With regard to cultural and educational cooperation, until now, the Iranian Government has been presenting a lot of scholarships to Vietnamese students and an Iranian student has come to Vietnam for a Vietnamese language course. A Persian language course has also been organised in VNU – University of Social Sciences and Humanities for the past two years. Iran and Vietnam’s literature books have been translated into Vietnamese and Persian languages. In 2013, an Iranian traditional music group held performances in Hanoi on the occasion of the 40^th anniversary of diplomatic ties between the two countries. Therefore, in my view, although political relations between Iran and Vietnam and cooperation at the international level in the UN, NAM and other international organizations as well as economic, trade, cultural and academic ties during the past 4 decades have been on the increasing trend, both countries should and are able to develop much more than before.

 

Through history, Iran has been an important country in global trade owing to its location in the Middle East and Central Eurasia. Countries including Azerbaijan, Armenia, Turkey, Iraq, Pakistan, Afghanistan and Turkmenistan are situated along Iran’s borders. Our country also has access to the Caspian Sea in the north and the Persian Gulf and the Oman Sea in the south, which borders by sea with other 8 important countries.

 

Iran has signed the agreement titled International North–South Transport Corridor which is the ship, rail and road route for moving freight from India to Europe through Central Asia, the Caucasus and Russia and till now, many countries have joined that agreement. Iran is the closest and the most secure path to reach the markets of peripheral countries with approximately 300 million population. Being member of ECO Organization consisting of Pakistan, Afghanistan, Turkey, Azerbaijan Turkmenistan, Kazakhstan, Kyrgyzstan, Uzbekistan and Tajikistan and with well-developed ports, rail roads and transit roads linking all of its cities to neighbouring countries, Iran can provide economic advantages for Vietnamese exporters who want to access new markets or expand their exports to the said countries.

 

It is expected that opportunities for the development of bilateral economic and trade relations will increase more than ever through the high – ranking visits from Vietnam to Iran in reciprocation for Iran's high – ranking official visit to Vietnam during the past years, as well as further exchange of business delegations will take place. I hope in the coming time, traders and investors of the two countries will play more active role in expansion of bilateral relations.

 

Lack of practical information on business potential among entrepreneurs of Iran and Vietnam is one of the biggest obstacles in developing bilateral cooperation. Governmental officials should facilitate relations between economic sectors and traders of the two countries through different ways such as facilitation of people-to-people and traders' relations, dispatching of trade delegations and encouraging entrepreneurs to participate in each other's economic and trade fairs. To this end, exchange of high-ranking political delegations and implementation of existing agreements, contracts and MOUs can be very useful. 

 

Further development of the friendly relations between the Islamic Republic of Iran and the Socialist Republic of Vietnam will be in line with the promotion of international peace, stability and security, as well as assurance of international maritime navigation which won't be against any third country.