The export value of Vietnam’s products to countries in Africa, Western Asia and Southern Asia was posted at US$1.3 billion in 2005, up 30 per cent over the previous year, of which the African market obtained a recorded increase of 84 per cent, accounting for more than US$660 million, according to the Department of Africa, Western Asia and Southern Asia under the Ministry of Trade.
Though the figure holds a small ratio in Vietnam’s total export value, these foreign markets, incorporating more than 80 countries, are drawing increased attention from both the Government and enterprises within Vietnam.
Vietnamese products are available in almost African, Western Asian and Southern Asian countries, including the major exports of rice, coffee, TV and electronic products, garments, footwear, plastic products, furniture, tea and pepper.
Vietnam annually ships around 1.8-2 million tones of rice to the markets, however, most shipments are made via companies in third countries because the importers are not able to make large payments of US$3.5-4.5 million on each shipment immediately.
Over the last two years, garment and footwear products have recorded high annual growth, with 60 per cent and US$50 million in export value and 30 per cent and US$50 million, respectively, although they have to face fierce competition on similar exports from China. Sport shoes, cloth shoes, all kinds of shoes for children, slippers and beach sandals are familiar in these markets but leather shoes have not made an appearance.
To expand exports to these long-distance but potential markets, the Department of Africa, Western Asia and Southern Asia has advised local enterprises to set up good business relations with Pakistan, Turkey, Iran, Arab Saudi, Greece, Israel, Morocco, Algeria, Senegal, Nigeria, Ghana, Angola, South Africa, Namibia, Tanzania, Mozambique and regard them as springboards to enter neighboring countries.
Vietnamese firms are also urged to work out strategies to penetrate into markets based on their competitive edge and utilize support from relevant bodies such as embassies and commercial sectors, and the Foreign Market Department under the Ministry of Trade. They should also consider opening trade offices or warehouses in the foreign markets with the aim of being active in making payments as well as understanding the demand for Vietnamese products. Vietnamese garment and furniture exporters need to set up joint venture factories in these regions because most of the countries enjoy a zero import tax rate to the EU and the US for their garment shipments.
At present, Vietnam has the Middle East and Africa Research Institute under the Ministry of Science and Technology, Vietnam-Africa Friendship and Cooperation Association, Vietnam-Africa Business Forum, and Vietnam-Africa Business Portal at
www.vinafrica.com providing information on the nine countries in southern Africa and Egypt, Algeria, Morocco, Angola, Tanzania, Senegal, Benin, and Libya. The activities of these organizations are responsible for creating the most favourable conditions to boost trade and economic relations between Vietnam and Africa and the Middle East.
Africa, Western Asia and Southern Asia are also good markets for wood materials and cashew nuts for Vietnamese importers, therefore, local enterprises should enhance their exports and explore import sources in these markets, remarked the department.
Vietnamese enterprises tapping the African market when their financial capacity is still weak and not able to meet slow payment requirements from African firms stands as one of the major hindrances to the development of Vietnam-Africa trade and economic relation, according to the department.
The Nam
Vietnamese
