Promoting Cooperation with Tanzanian Enterprises

Speaking at the meeting, Dr Doan Duy Khuong affirmed that in spite of great potential for cooperation; trade relations between Vietnam and Tanzania are still limited. Dr Khuong welcomed the interest of the Tanzanian government and businesses with Vietnam. He also hoped that the meeting would open up better opportunities for the two countries’ enterprises in the future, bringing more Vietnamese investors into the Tanzanian market, particularly in sectors such as cement and coal slag.

 

According to trade statistics, as of March 2015, the total import-export turnover of Vietnam and Tanzania reached US$121.65 million. Export turnover to Tanzania in 2014 reached US$51.65, increasing by 103 percent compared to 2013. In the first 3 months of 2015, export turnover reached approximately US$20.88 million. The main export items of Vietnam to Tanzania include textile products, rice, electrical wires and cables. In Vietnam's exports to Tanzania, rice accounts for the largest proportion (83-85 percent). Rice imported from Vietnam accounts for 50 percent of the annual average rice import demand of Tanzania. In addition, some industrial products such as clinker, fertilizers, machinery, tools, spare parts, components, computers are Vietnam’s potential export items because they can meet current needs of the Tanzanian market.

Regarding import, Vietnam only imports from Tanzania some commodities, mainly cotton, raw cashew nuts, small machinery. Among these, cotton accounts for 64 percent of the import value between Vietnam and Tanzania. Generally, the amount of imported goods is limited and unstable.

 

According to Mr Florens M.Turuka, enterprise structure of Tanzania now is different from that of Vietnam. Tanzania has two major centres, namely Business and Investment Centre in charge of private enterprises and the National Trade Centre in charge of state enterprises. Every year, these two centres jointly organise meetings to discuss issues related to business and investment to draw the lessons learned, with the participation of the Prime Minister or the directors of the two centres. Tanzania has established the investment promotion centre to be the bridge connecting investors with the economy of Tanzania. This centre will coordinate foreign and Tanzanian enterprises. To promote and attract investment, investors must register here to get the support in terms of trade and finance. The Tanzanian delegation to Vietnam is very interested in the investment law, land law and the current tax policy in Vietnam. Currently, Tanzania is promoting the procedure of avoidance of double taxation.

Regarding the incentives for investors, Mr Florens M.Turuka confirmed that along with general economic reform activities, the investment environment in Tanzania is being significantly improved.

 

The Government is trying to attract foreign investors by measures such as loosening exchange rates, issuing certificates for foreign banks to operate and reducing bureaucratic procedures in attracting investment. Thanks to that, foreign investment has been constantly increasing. Particularly, Tanzania is one of eight countries with the best economic conditions in the region including good infrastructure development, river system, road system and airways. Cooperating with and investing in Tanzania, Vietnam’s enterprises can now reach the countries in the African continent.

 

In addition, Tanzania is also very eager to cooperate with Vietnam in the field of agriculture. Therefore, Tanzania said it would be willing to give large area of agricultural land for Vietnam to exploit and cooperate. Tanzania also suggested that Vietnam send experts in agriculture and irrigation. Vietnam currently has two agricultural projects in Tanzania which are looking for partners to implement, namely Synthesis household economy with Tanzania (livestock, rice cultivation, small machinery) and Cooperation project in the fields of fisheries, cashew growing and processing in Zanzibar with Tanzania.

 

Participating in the meeting, representatives from some enterprises shared that the current exchange of information between the two countries is still limited, particularly information in the field of trade. Enterprises of the two countries do not know much about each others' market and business practices. In fact, some export items of Vietnam have entered Tanzanian market through intermediary companies abroad. In addition, Tanzania has limited financial capacity, so direct trade under the opening L/C method is difficult. Enterprises expect to be supported more in terms of information to reach and expand cooperation and investment in this market.