Businesses target Middle-East, African markets

Middle-Eastern and African markets with a demand for Vietnam ’s major exports such as rice were the major targets for business circles during a workshop in Hanoi on December 2.

Deputy Minister of Industry and Commerce Le Duong Quang told the workshop that the Middle East is emerging as a potential market for Vietnam , as a number of regional countries are pursuing an eastern-orientated trade policy.

In order to grasp these opportunities, Vietnam has signed bilateral agreements with countries in the region, including agreements on trade, economic and scientific-technological cooperation and maritime transport along with political and diplomatic efforts.

This has helped to lay a firm legal foundation for businesses to expand their operations in the region, said the deputy minister.

Statistics released by the ministry have revealed that two-way trade revenue with the Middle-East reached almost 1.2 billion USD in 2007. The figure is expected to increase by 30 percent this year.

The Southeast Asian nation earned 700 million USD from the export of rice, coffee, clothing, computers and electronic components, footwear, seafood and wooden furniture. In return, it imported petroleum, petrochemical products, fertilizers and steel from Middle-Eastern markets.

Regarding the African market, experts see a lot of potential for development, with its huge demand for Vietnamese products, particularly rice and other food products.

However they also recognised a number of disadvantages, namely the huge distances involved and largely underdeveloped state of the continent with a low liquidity capacity.

With all of these limitations, the two sides have yet to tap trade potential, they acknowledged.

However, trade relations between Viet Nam and Africa grew rapidly during 2007, surpassing the 1 billion USD mark, with the Southeast Asian nation enjoying a trade surplus for export of 684 million USD. In the first eight months of this year alone, the country recorded 922 million USD in export revenues and posted 692 million USD in imports from African nations.

In addition to trade relations, Vietnam is expanding cooperation in the oil and gas sectors with several African countries, such as Algeria and Nigeria. (VNA)