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Middle East market:
Vietnam has the potential to expand its export markets, especially agricultural products and foodstuffs to the Middle East and Africa.
This is the meeting of delegates at the "Middle East - Africa Trade Fair: Opportunities for Trade and Export Promotion" organized by the Ministry of Industry and Trade in Ho Chi Minh City on December 19. .
Much potential for boosting trade
Mr Ngo Khai Truong, Deputy Director of the Asia-Africa Market Department (Ministry of Industry and Trade), said that although geographically, Vietnam and the Middle East and Africa have friendly relations. Traditionally, good and constantly being strengthened, especially in the field of trade and investment.
The Middle East and Africa, which comprises 70 countries with a population of over 1.6 billion people, has great demand for imported goods which is considered a potential market for Vietnamese exporters. In 2016, the export turnover between Vietnam and Middle East, Africa reached 23.3 billion USD; Vietnam exported $ 14.9 billion and imported $ 8.4 billion.
Share with businesses about the opportunities in the African market, said Nguyen Thi Minh Phuong, Africa market leader, Asia-Africa Market Department said Africa comprises 55 countries, more population 1.3 billion people. The demand for agricultural products from African countries is enormous. In 2016, African countries imported $ 35 billion worth of agricultural products, estimated to reach $ 110 billion by 2025.
According to Nguyen Thi Minh Phuong, due to the harsh natural conditions, the African agriculture is very difficult to develop. As a result, most of the agricultural products, foodstuffs catering to the needs of people have to import from other areas. Particularly, commodities such as rice, seafood, coffee and pepper are in high demand. In addition, the characteristics of the African market is demanding in terms of quality, technical not too rigorous, preferential choice of products by price.
On trade policy, 43/55 African countries are members of the World Trade Organization; Vietnam has also participated in many cooperation programs with African countries. As a result, many countries have gradually removed non-tariff barriers and reduced import tariffs on Vietnamese goods. This is considered to be a very favorable condition for Vietnamese enterprises to boost their export of strong products and expand their market share in this market.
In the Middle East market, Mr. Ly Quoc Thinh, Middle East market leader, Asia-Africa Market Department, said the trade cooperation between Vietnam - Middle East has developed rapidly in recent years. If the total turnover of Vietnam-Middle East trade reached $ 5.2 billion in 2011, the figure doubled to $ 10.9 billion in 2016.
In 2016, exports from Vietnam to Middle East countries reached $ 8.06 billion, but only accounted for 1% of total imports of Middle East countries, this shows that Vietnam has a lot of surplus Expanding exports to this market.
According to Ly Quoc Thinh, Middle East countries now have high demand for food, agricultural products, tropical fruits, seafood, consumer goods, footwear and textiles. Every year, the Middle East is importing about $ 40 billion of food and foodstuffs. It is estimated that by 2035, the region will import about $ 70 billion in food and foodstuffs to meet consumer demand.
The advantage of the Middle East countries is its high purchasing power and high liquidity as many countries have developed economies and high per capita incomes. Apart from agricultural products, consumer goods, countries in the Middle East are also developing the construction industry, so the demand for household goods, construction materials and labor resources are also high. This is an opportunity for both Vietnamese businesses and workers.
Need to find out information
Although the import demand of Africa is very large, the access to this market poses many challenges for Vietnamese enterprises. Nguyen Thi Minh Phuong said that African countries have requirements on the label, language, code, Halal certification (permitting and legal) for imported goods is quite different from the Traditional export markets of Vietnam. Also, in some West African countries, fraudulent behavior in commercial transactions is on the rise.
Therefore, Vietnamese enterprises, when exporting to these markets, should pay careful attention, especially with the methods such as pre-delivery - post-payment; Need to thoroughly understand information from partners through the commercial counselor Vietnam and the host country.
Unlike Africa, the Middle East has a more developed economy, so the demand for imported goods is also higher, especially for food products. According to Mr. Ngo Khai Hoan, in addition to Halal certificates for food products, seafood imports, Middle Eastern countries often love Certificate of standards, quality inspection, labels ... issued by the Organization for Standards and Metrology (GSMO). In addition, the Middle East is a region where there are many instabilities in political security, business culture, payment methods are far from Vietnam, so most Vietnamese businesses know little about market information and the potential risks.
Therefore, in addition to encouraging Vietnamese enterprises to actively explore the market, seeking opportunities for cooperation and promoting trade in goods with the Africa-Middle East region, experts also advised businesses You should know the information, verify the information traders, market information before the transaction. Exporters should be wary of overly attractive deals and regularly seek information through reputable channels such as the commercial office in the host country to minimize the risks involved in the transaction. international commerce.