“Kazakhstan investors should come, as by the end of 2015, the ASEAN Economic Community (AEC) will be officially established. Increasing cooperation with Vietnam is tantamount to developing cooperation with 10 ASEAN members. Businesses of both sides should focus on infrastructure, mining, oil and gas, tourism, garment, footwear, rubber processing, vegetable and fruit, aqua-products, animal husbandry, and packaging tea and coffee. The two sides can also establish joint ventures in each other’s territory.”
The above is the statement of Dr Doan Duy Khuong, VCCI Vice President, at a recent business forum on Kazakhstan market in Hanoi sponsored by VCCI, Kazakhstan Embassy and Astana International Exposition (EXPO Astana).
According to Mr Khuong, in the recent past, bilateral economic-trade cooperation has developed positively even when trade value remains modest in comparison to potential. According to statistics of the General Department of Vietnam Customs, in 2014, Vietnam-Kazakhstan trade value stood at US$228.9 million with Vietnamese export worth US$218.4 million increased by 42 percent and import worth US$10.5 million, double that of 2013. However, the two countries can develop vigorously bilateral cooperation in the coming years.
“It has been evidenced by the fact that four months after the signing of Air Services Agreement in September 2012, on January 2, 2013, Air Astana of Kazakhstan started direct flights to Vietnam promoting trade and tourism between the two countries. Direct flights between Ho Chi Minh City, the biggest socio-economic centre of Vietnam and Almaty, the biggest city of Kazakhstan serve as the channel for long-term cooperation as well as tourism to discover the beautiful city of Central Asia,” Mr Khuong added.
In particular, the conclusion of Free Trade Agreement between Vietnam and Asia-Europe Economic Alliance will promote comprehensive and high commitments for mutual interests with specific conditions of each side. Vietnam will have preferential treatment on agricultural exports, garments, footwear and wood-based products, while giving the counterpart road maps for animal husbandry products, machines, equipment and vehicles. Those imports will not compete with Vietnamese products and, in fact, diversify consumers’ goods in Vietnam. Meanwhile, WTO provisions are honoured regarding service, investment, intellectual property, competition, trade safeguards, dispute settlement, SPS, TBT, etc., ensuring balanced interests consistent with domestic laws and without bearing on current Vietnamese negotiations.
Mr Khuong also believes that the signing and implementation of the agreement is a new important step to develop the fine tradition and friendship between Vietnam, the Russian Federation, Belarus and Kazakhstan for mutual interests. In addition to political, economic, trade and investment relations, the FTA will also promote cooperation in other fields such as education-training, science-technology and culture.
For his part, Mr Zhoshybayev Rapil, First Deputy Minister of Foreign Affairs of Kazakhstan and Commissioner of Expo 2017, said that his government is developing infrastructure to attract maximum investments and business cooperation with other countries including Vietnam.
It is reported that Kazakhstan will invest US$50 billion in green energy in 2020 and US$100 billion in 2050. Half of the investment capital will focus on renewal energy. Vietnamese businesses should make the best use of this opportunity.
At the forum, Kazakhstan delegation also introduced opportunities for business cooperation and expansion in EXPO Astana 2017, to be held from June 10 to November 10, 2017, at Astana, capital city of Kazakhstan.
According to Mr Duong Hoang Minh, Deputy Director, Department of European Market, Ministry of Industry and Trade, Kazakhstan is still a new market and Vietnamese businesses should conduct feasibility studies on geographical distance, bilateral payment and tariff barriers so as to make investments in infrastructure with quality and service of international standard. They must ensure high standard of food security in their cooperation.
Also in the framework of the forum, EXPO Astana signed with Saigontourist a cooperation agreement after the first direct flight from Ho Chi Minh City to Astana. It is regarded as initial cooperation for business opportunities between the two countries.
Quynh Chi
Vietnamese
