In order to develop and elevate trade ties between Ho Chi Minh City in particular and Vietnam in general with Dubai - UAE (the United Arab Emirates), Vietnam Chamber of Commerce and Industry, Ho Chi Minh City Branch (VCCI-HCM) cooperated with MIG Company and Relam - Dubai to open the Dubai - Vietnam Trade Forum.
Delivering the opening keynote to the Forum, Mr Tran Ngoc Liem, Deputy Director of VCCI - HCM, said that Dubai - UAE is one of key markets in the Middle East and Africa Trade Promotion and Development Project backed by the Government of Vietnam. Vietnam - UAE trade relations have grown quite well in recent years, featured by the trade value climbing 35 folds in 12 years, from US$140 million in 2006 to more than US$5.6 billion in 2017. Particularly, Vietnam mainly runs a trade surplus with the UAE market. In 2017, Vietnam exported over US$5 billion worth of goods to the UAE while spending just US$6 million on imports from the Middle East country.
While asserting that Dubai - UAE is a key market for HCM City's trade expansion with Middle East countries, Ms Cao Thi Phi Van, Deputy Director of the Trade and Investment Promotion Centre of Ho Chi Minh City (ITPC), admitted that Dubai - UAE is ranked 43rd among 100 countries and territories investing in HCM City with just nearly US$10 million in 11 projects. Particularly in trade, HCM City’s export turnover to the UAE is very modest, just nearly US$300 million, a very small pie in the US$5 billion export value of Vietnam to that country. This shows that both HCM City and Dubai - UAE are yet to unlock their potential. Moreover, UAE states are not included in ITPC’s investment promotion programmes in the previous years.
“Realising that the cooperation potential between Dubai and HCM City has not been tapped effectively due to operations of trade promotion agencies, ITPC recently organised two business delegations to the UAE in March and late October 2018, led by HCM City People’s Committee Chairman Nguyen Thanh Phong. The city government wants to see stronger investment cooperation ties with Dubai - UAE, or particularly raising the investment value of this partner in the city,” she stressed.
Sharing about Vietnam - Dubai cooperation prospects, Mr Ashraf A.Mahate, Head of Export Market Intelligence at Dubai Exports, said, in 2017, a company bought up to 20 per cent of Vietnam's pepper output for sale in Dubai central markets, showing Vietnamese companies can go to Dubai to do business. Currently, Dubai's main exports are jewellery, pearls, gemstones and metals (accounting for 51.5 per cent). Moreover, Dubai has the world's lowest tariffs and exempt corporate income tax. This is a great advantage for Vietnamese enterprises to invest in this potential market.
He recommended that, “To export goods to Dubai - UAE more easily, Vietnamese businesses should combine offline and online channels. Firstly, they should go to Dubai to meet with Dubai Exports and we will help them figure out appropriate trade promotion plans. Then, they should open a showroom or a branch office or a representative office in Dubai to enjoy more attractive tax incentives and financial supports. Later, they should register sales booths on the online trading platform T-HUB. Like Dubai Exports, T-HUB will help Vietnamese businesses find suitable trading partners. Importantly, T-HUB will provide comprehensive support for administrative, logistics and financial procedures.”
My Chau
Vietnamese
