Boosting Business Cooperation with Egypt

VCCI Vice President Doan Duy Khuong said Vietnam and Egypt are two relatively close markets. The two-way trade was positive from 2009 to 2012. While Vietnam’s exports to Egypt steadily increased, Egypt’s export revenue was volatile. In 2013, as political unrest in Egypt led to the scarcity of foreign currencies for trade payment, the two-way trade turnover plummeted 24 percent from 2012.

 

To strengthen tourism cooperation and development, the two countries need to encourage and support tourism industry and traditional festivals and exchange information and experience in tourism development, said Egyptian Ambassador to Vietnam Youssef K. Hanna. In addition, the two sides need to encourage marketing and tourism and develop tourism human resources.

Ayman Ali Osman, Head of Economic and Commercial Office in Beijing (Embassy of Egypt in Beijing, China) introduced trade, investment and tourism policies in Egypt. The country has a favourable geographical position as it is the gateway to the African market and the centre of Arab countries and the Middle East. Investors will receive a lot of incentives when they do business in Egypt.

 

According to VCCI, Egypt is an agricultural country but its industry is relatively developed. Its incomes mainly come from oil and cotton exports. Egypt is rich in natural resources and this advantage will facilitate investors when they invest and do business here. Mining industry of Egypt is very developed. Oil production and export has played a central role in the Egyptian economy over the past 20 years. However, due to shrinking reserves, Egypt has slowed down oil production. Its garment and textile sector is relatively developed and this generates the most jobs in the country. In addition, Egypt has developed mechanical engineering, steel, cement, chemical, pharmaceutical and automobile industries.

 

Egypt's service sector expands 4.5 percent a year average. Important services include tourism, banking, mining and Suez Canal operation. Tourism is the largest forex earner of Egypt. The Egyptian Government is planning to deepen the Suez Canal to support bigger ships but it has not set the time for this plan yet.

 

Vietnam’s key exports to Egypt are seafood, black pepper, fibres, automotive parts and coffee. In 2013, Vietnam spent US$1.18 million on imports from Egypt, up 15 percent against 2012 while its export earnings slumped.

 

In recent years, Vietnam mainly imports textile materials, leather and footwear, ores, minerals, milk and some other commodities from Egypt.

 

After the presidential election in April 2014, plus the loan from the Arab world, Egypt's economy is expected to gradually recover and its trade exchange with the world, including Vietnam, will regain growth momentum.

 

The two have not had any investment projects in each others' countries. Bilateral cooperation on intellectual property has not been established. However, Vietnam and Egypt are both the full members of the World Intellectual Property Organisation (WIPO) and the signatories to the Paris Convention for the Protection of Industrial Property, and the Madrid Agreement Concerning the International Registration of Marks.