Vietnam-Poland Trade Being Brought to New Height

On April 21^st, the Economic and Commercial Chamber of Polish Embassy in Vietnam had a press conference on Vietnam-Poland cooperative and commercial ties. On this occasion, VIB Forum Magazine held an interview with Polish Commercial Counsellor Zbigniew Pawlik.

The Polish economy is developing very well. The GDP in 2005 increased by 3.2 per cent and the GDP was up 5.2 per cent in the first quarter of 2006 and is forecast to grow 4.6 per cent in 2006. Export is the locomotive pulling up the Polish economy. In 2005, export turnover reached US$89.3 billion (up 21.1 per cent on year) while import revenues were US$100.9 billion (an on-year increase of 14.5 per cent). The largest trade partner of Poland is the EU. The bilateral trade revenues were US$135.2 billion. The export revenue to the EU accounted for 77.3 per cent of the total while import revenues from the EU made up 65.6 per cent.

 

We increasingly understand the efficiency of our EU entry. At this point in time, we are receiving a large volume of money from the EU. Besides, 15 member countries in the EU bloc are opening their labour markets. When Poland entered the EU, more than one million Polish workers were employed abroad. Overseas Polish workers sent remittances to their families. This also made the Polish economy grow faster. 

The Polish economy is developing very well. What are Poland-Vietnam bilateral trade relations like?

The Polish economy is in good condition and Vietnam-Poland two-way trade ties are also very good. In 2005, the two-way trade revenues reached US$242.5 million, of which Poland earned US$53.4 million from exports to Vietnam and spent US$189.1 million on imports from Vietnam, up 26 per cent and 12.8 per cent on year, respectively. Main exports from Poland to Vietnam are materials, machinery, mechanical equipment for shipbuilding industry and mining, and milk products, mainly powered milk.

 

With credit support policies, the exportation of materials, machinery and equipment for shipbuilding industry to Vietnam has consistently ranked first in recent years. Export of these products were worth US$19.2 million in 2005, accounting for 35.9 per cent of Poland’s total export to Vietnam. The second largest export is powdered milk, which was valued US$17.7 million, accounting for 33.2 per cent, doubling in value in 2004.

 

Vietnamese exports to Poland in 2005 were principally unchanged. Farm produce (coffee, rice and tea) were staples. Farm products made up 31.7 per cent, or US$60 million, of Vietnam’s total export revenues to Poland. The second largest export was footwear, which formed 25.2 per cent of Vietnam’s total export turnover to Poland. Compared with 2004, the footwear export turnover rose 2.8 per cent to US$47.7 million. Garments came third with US$15.59 million, or 10.9 per cent of the total.

 

The appearance of new Vietnamese exports showed that Vietnam was diversifying exported commodities to Poland. Especially, the animal product export revenue in 2005 quadrupled that of 2004 to US$16.3 million, higher than many traditional items. Mechanical products, vehicles and high-tech products began to be exported with quite high revenues. These products brought higher value than other traditional products of Vietnam like farm produces, footwear and garments.

Poland greatly supports the development of the Vietnamese shipbuilding industry via credit agreements. At present, the two countries have successfully finished the old credit agreement; can you tell us something about the new one?

The US$70-million shipbuilding industry development credit agreement of the Polish Government has been successfully accomplished. Poland provided materials, machinery, equipment and technologies for Vietnam’s Vietnam Shipbuilding Industry Corp. (Vinashin). The credit pact has laid the foundation for the development of the Vietnamese shipbuilding industry and heightened the cooperative ties between the two countries in this field.

The continuation of the Polish policy to provide credits for Vietnam is a driving force for the mutual cooperation development, not only the ocean-going shipbuilding field. Poland is seeking new fields to grant credits to Vietnam. Coal mining, bauxite exploitation and processing, electricity, chemical, construction machinery and construction material are among the top choices. At present, Poland and Vietnam are in talks over two credit agreements, valued US$80 million and US$200 million, for Vinashin’s shipbuilding projects and Vietnam Coal and Minerals Group’s 200-MW thermoelectricity plant. The negotiations have reached initial results and we expect the two agreements to be signed in the second or third quarter of this year.