At the invitation of Vietnamese President Truong Tan Sang, President of the United Republic of Tanzania Jakaya Mrisho Kikwete paid a State-level to Vietnam from Oct 26 – 28, 2014. On the occasion of this official visit, the Vietnam Chamber of Commerce and Industry (VCCI), in collaboration with Tanzania Investment Centre, held a Roundtable Discussion with the President of Tanzania and the Tanzania Investment Centre on business and investment opportunities in Tanzania.
This was the second visit to Vietnam of President Jakaya Mrisho Kikwete. The first time was in 2001 when he served as the Minister of Foreign Affairs and International Cooperation.
At the discussion, President Jakaya Mrisho Kikwete said that his visit to Vietnam this time aims to promote bilateral cooperation as well as exchange experiences and seek measures for cooperation in the fields of agriculture, fishery production, investment, education, health care and telecommunications, as well as to exchange views on international issues of mutual concern.
According to the President, Tanzania currently has many preferential policies for investors. Since 1996, Tanzania has been conducting economic reforms such as opening up the private economy, liberalising and diversifying the economy. Tanzania now has an economic growth of about 7 percent a year. Besides, the country also has a stable political and legal system and many favourable policies which could provide great support for Vietnam enterprises coming to invest in Tanzania.
As an agriculture-based economy, Tanzania is implementing the strategy “Agriculture as top priority”, with agricultural investment taking up seven percent of the budget. The government also makes the best of outside aid and support for this field. Especially, Tanzania is one of eight countries with the best economic conditions in the region, well-developed infrastructure, and an efficient traffic system of waterways, road and aviation. By doing business in Tanzania, Vietnam can have access to other African countries.
According to VCCI Vice President Hoang Van Dung, political and diplomatic relations between Vietnam and Tanzania have been growing well. Trade agreements signed between the two countries in 2001 with the MFN status in bilateral trade has opened up new business opportunities for enterprises of the two countries. This has provided a very important legal framework for bilateral trade.
However, according to statistics, trade cooperation between the two countries still remains modest, failing to meet its potential. Before 2009, the bilateral trade volume had been about US$30-40 million/year; since 2010, it has reached over US$100 million a year. By 2013, bilateral trade reached US$105 million. The first 6 months of 2014, Vietnam's exports to Tanzania was US$17.4 million.
Import and export between the two countries included mainly rice, clinker, cotton, cashew nuts, forage, etc. In March, the Ministry of Agriculture and Rural Development of Vietnam sent a delegation to Tanzania to study the cooperation potential in rice growing and the construction of a research institute in the semi-autonomous Zanzibar area. Tanzania wishes Vietnam to supply small agricultural machines to markets in Tanzania and the other five East African countries, hopes to learn from Vietnam's experience in rice farming and aquaculture. In the telecommunications sector, the government of Tanzania licensed Viettel Group to build and deploy a 3G telecom network operator in Tanzania, scheduled to open by mid-2015.
Mr Dung said that a number of important export items of Vietnam have successfully penetrated the market of Tanzania, of which rice is the dominant item. In addition, Tanzania also has high demand for Vietnam’s imported machinery and the technology of cashew nut processing. Tanzania also wishes to cooperate with Vietnamese enterprises in the field of textiles, dairy, fruit juice production and special agricultural cooperation. Tanzania is also a market that Vietnam could import some needed products such as cotton, cashew nuts and forage.
According to Mr Dung, implementing directives of the Prime Minister, the Vietnam-Africa-Middle East Business Forum has been hosted by VCCI since 2011 on the basis of the Vietnam-South African Business Forum period 2003-2010. The trilingual Vietnam-Africa/Middle East e-commerce portal with Vietnamese, English and Arabic have benefited businesses from both Vietnam and Africa/Middle East region with easier access to information, therefore creating favourable conditions for profitable trade.
Mai Anh
Vietnamese
