An overview of the panel discussion (Photo: VNA) Economic ties between African and MiddleEastern countries and Southeast Asia in general, Vietnam in particular is stillconstrained, said Deputy Prime Minister and Foreign Minister Pham Binh Minh atthe two-day conference ‘Meet Ambassadors from the Middle East and Africa 2019’held by the Ministry of Foreign Affairs from September 9 to 10 in Hanoi.
Addressing the panel discussions for boosting tradecooperation within the framework of the conference, Foreign Minister Minh saidthat despite 16 free trade agreements already being inked, Vietnam has had nonewith any countries within Africa and the Middle East.
Potentials leaving untapped
Africa and the Middle East together make up a vastarea of 36 million sq.km, with a population of 1.8 billion. Many internationalexperts held that Africa could be the growth momentum for the global economy.
Vietnam has established diplomatic relations with69/70 African and Middle Eastern countries with bilateral trade of over 17.5billion USD, an increase of over 300 percent from 2008 to 2018.
According to insiders, African and Middle Easterncountries have high demand for farm produces, especially tropical ones, due totheir harsh natural conditions.
Addressing the panel discussions for boosting tradecooperation within the framework of the conference, Foreign Minister Minh saidthat despite 16 free trade agreements already being inked, Vietnam has had nonewith any countries within Africa and the Middle East.
Potentials leaving untapped
Africa and the Middle East together make up a vastarea of 36 million sq.km, with a population of 1.8 billion. Many internationalexperts held that Africa could be the growth momentum for the global economy.
Vietnam has established diplomatic relations with69/70 African and Middle Eastern countries with bilateral trade of over 17.5billion USD, an increase of over 300 percent from 2008 to 2018.
According to insiders, African and Middle Easterncountries have high demand for farm produces, especially tropical ones, due totheir harsh natural conditions.
Deputy Prime Minister, Foreign Minister Pham Binh Minh and delegates at the conference (Photo: VNA)
However, according to Deputy Foreign Minister NguyenQuoc Cuong, the bilateral trade value of 18 billion USD in 2018 show its humblecontribution to Vietnam’s total trade value of 480 billion USD.
Therefore, during the panel discussions, participantsdiscussed concrete to overcome obstacles hindering two-way trade in order tounlock potentials in bilateral cooperation.
Obstacles hindering two-way trade
Speaking about difficulties facing two-way tradebetween Vietnam and Africa, Middle East regions, Foreign Minister Minh saidthat a lack of insights into each other’s market, business practices and legalsystem is among major obstacles hindering the cooperation between Vietnam andthe regions.
Besides, he also stressed the far distance betweenVietnam and the two regions also result in an improper attention of relevantministries, agencies and enterprises of the two sides.
Deputy Foreign Minister Minh also pointed out thatineffective bilateral cooperation mechanisms have yet to fully exploitpotentials in trade cooperation between the parties.
From their own experiences in doing business withcountries from the Middle East, Deputy General Manager of Lavifood Joint StockCompany Duong Thi Bich Diep voiced her concern over the Middle Eastern enterprises' long habit of not usingLetter of Credit for making payment, which results in a huge risk forVietnamese enterprises.
Timely conference with practicaldiscussions
According to Tarzania Ambassador to Vietnam MblewaBrighton Kairuki, the conference was organised at the right time as Africa isratifying the Africa continental free trade area and the continent is welcomingVietnamese enterprises to do business to take advantage of the free tradearea.
Mr. Maher Al Arayssi, Chief of Representative Officeand Purchasing Manager of Lebanon-based C-food International said that through meetingswith ambassadors, international development organisations and business partnersduring the event, businesses like his have identified several problems they arefacing to come up with effective measures.
Suggesting the way to boost bilateral tradecooperation, both sides needs “more aggressiveness”, which means more delegations,both from the government and businesses should be regularly exchanged, according to Adib Kouteili, Co-founder & Director of PEB Steel Buildings Co., Ltd, a business participating in the event.
Diplomats from both sides also discussed measures toenhance cooperation in such fields of mutual strength and demand, includingagriculture and telecommunications.
Deputy Minister Minh suggested that the both sidesenhance cooperation and assistance in not only bilateral forums but alsomultilateral ones, such as the United Nations and cooperation mechanismsbetween Vietnam and the African Union and between Middle Eastern, Africancountries and Vietnam.
Participants also voiced their expectation that theMinistry of Foreign Affairs would continue hosting similar events in thefuture, which offer opportunities for enterprises from both sides to meet upand meet with policy makers, in order to boost bilateral trade.
They also asked the diplomats and policy makers toaccelerate negotiations in order to facilitate trade and investment betweenVietnam and Africa, the Middle East.
An initiative of establishing a portal for trade andinvestment between Vietnam and Africa, the Middle East was voiced during thetrade panel. The portal is expected to provide market insights as well asinformation of potential partners for enterprises from both sides.
According to Deputy General Manager of LavifoodJoint Stock Company Duong Thi Bich Diep, the portal will save enterprises’ timeand effort in market research while performing as a secured platform forenterprises to expand their business to the both sides’ markets as it isgovernment guaranteed.-VNA
Therefore, during the panel discussions, participantsdiscussed concrete to overcome obstacles hindering two-way trade in order tounlock potentials in bilateral cooperation.
Obstacles hindering two-way trade
Speaking about difficulties facing two-way tradebetween Vietnam and Africa, Middle East regions, Foreign Minister Minh saidthat a lack of insights into each other’s market, business practices and legalsystem is among major obstacles hindering the cooperation between Vietnam andthe regions.
Besides, he also stressed the far distance betweenVietnam and the two regions also result in an improper attention of relevantministries, agencies and enterprises of the two sides.
Deputy Foreign Minister Minh also pointed out thatineffective bilateral cooperation mechanisms have yet to fully exploitpotentials in trade cooperation between the parties.
From their own experiences in doing business withcountries from the Middle East, Deputy General Manager of Lavifood Joint StockCompany Duong Thi Bich Diep voiced her concern over the Middle Eastern enterprises' long habit of not usingLetter of Credit for making payment, which results in a huge risk forVietnamese enterprises.
Timely conference with practicaldiscussions
According to Tarzania Ambassador to Vietnam MblewaBrighton Kairuki, the conference was organised at the right time as Africa isratifying the Africa continental free trade area and the continent is welcomingVietnamese enterprises to do business to take advantage of the free tradearea.
Mr. Maher Al Arayssi, Chief of Representative Officeand Purchasing Manager of Lebanon-based C-food International said that through meetingswith ambassadors, international development organisations and business partnersduring the event, businesses like his have identified several problems they arefacing to come up with effective measures.
Suggesting the way to boost bilateral tradecooperation, both sides needs “more aggressiveness”, which means more delegations,both from the government and businesses should be regularly exchanged, according to Adib Kouteili, Co-founder & Director of PEB Steel Buildings Co., Ltd, a business participating in the event.
Diplomats from both sides also discussed measures toenhance cooperation in such fields of mutual strength and demand, includingagriculture and telecommunications.
Deputy Minister Minh suggested that the both sidesenhance cooperation and assistance in not only bilateral forums but alsomultilateral ones, such as the United Nations and cooperation mechanismsbetween Vietnam and the African Union and between Middle Eastern, Africancountries and Vietnam.
Participants also voiced their expectation that theMinistry of Foreign Affairs would continue hosting similar events in thefuture, which offer opportunities for enterprises from both sides to meet upand meet with policy makers, in order to boost bilateral trade.
They also asked the diplomats and policy makers toaccelerate negotiations in order to facilitate trade and investment betweenVietnam and Africa, the Middle East.
An initiative of establishing a portal for trade andinvestment between Vietnam and Africa, the Middle East was voiced during thetrade panel. The portal is expected to provide market insights as well asinformation of potential partners for enterprises from both sides.
According to Deputy General Manager of LavifoodJoint Stock Company Duong Thi Bich Diep, the portal will save enterprises’ timeand effort in market research while performing as a secured platform forenterprises to expand their business to the both sides’ markets as it isgovernment guaranteed.-VNA
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