HCM City (VNA) – Although South Asia is an enormous market with substantial consumer demand well-suited for Vietnam's key export staples, trade potential with the region remains fully untapped, experts revealed at a workshop in Ho Chi Minh City on November 13.
The workshop, jointly held by Ho Chi Minh City's Centre for International Integration Support (CIIS) and the Ministry of Industry and Trade's Asia – Africa Market Department, highlighted the significant opportunities in the region.
According to Director of the Asia – Africa Market Department Do Quoc Hung, the region, with eight countries and a population of more than 2 billion people, boasts strong purchasing power and is a promising market for Vietnam.
South Asia offer significant opportunities for Vietnamese exports, including machinery, electronics, chemicals, building materials, garments and textiles and agricultural products, yet trade volumes remain below potential, reaching only 16.3 billion USD last year, or less than 4% of the country’s total exports to Asia – Africa.
Statistics from the General Department of Vietnam Customs showed that trade revenue between the two sides in the January – October period was 14.4 billion USD, a year-on-year increase of more than 6%. Vietnam’s shipments grew by 12% to 9.3 billion USD, with key exports maintaining robust growth like telephones, steel, metal, garments and textiles, and rubber.
He held that Vietnamese firms have not tapped into the market to the fullest extent due to limitations in experience, knowledge of the market, stringent technical barriers for exports, and increasing protection measures in the market.
In the same vein, CIIS Deputy Director Huynh Minh Vu said Vietnamese enterprises have been hesitating to explore the market due to obstacles regarding insufficient market information, complicated business environment, and differences in culture and business practices.
He pointed out emerging opportunities beyond traditional industries like garment and textile and agriculture as South Asian countries are diversifying their markets with IT, renewable energy and medical equipment production sectors, saying their economic shifting creates big opportunities for Vietnamese firms, particularly small and medium-sized enterprises which are able to provide high value-added goods and services.
For his part, Vietnamese Trade Counsellor in India Bui Trung Thuong underscored the need for businesses to take the initiative in seeking market information, building specific strategies, establishing partnerships with local firms and renewing their products for successful market access to South Asia.
In the long term, Vietnam should develop its logistics system and transport corridors to reduce shipping costs, thus enhancing Vietnamese products’ competitive edge in this market, he added./.
