Vietnamese products are well placed to meet the growing demand for food, garments, electronics, motorbikes, agricultural equipment, pharmacy and coffee in the African market.
Huge potential
Vietnam’s exports to Africa have picked up steadily in recent years, from US$1.56 billion in 2009 to US$3.5 billion in 2011.
The country has so
far established trade ties with nearly all 55 African nations which are in need
of rice, garments, footwear, machinery, equipment, computers and spare parts,
agricultural machinery, plastics, timber products, motorbikes and processed
food.
Its key export markets include South Africa, Egypt, Ivory Coast, Angola, Nigeria, Ghana and Tanzania.
Deputy Minister of Trade and Industry Ho Thi Kim Thoa says Vietnam and Africa are both WTO members, and Vietnam’s exports to the continent enjoy Most Favoured Nation (MFN) tariffs.
Vietnam has also engaged in tri-party cooperation programmes to bring more goods to the African market, Thoa says.
Victoria Kwakwa, Director of the World Bank in Vietnam, emphasises that Africa is a potential market for Vietnamese goods.
Overcoming challenges
Experts urge that to boost exports to Africa, Vietnamese businesses should be active in overcoming obstacles and turn them into advantages.
According to Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), such obstacles include geographic distance, high transport costs, trading through intermediaries and language barriers.
Le Dang Dung, Vice-Director General of Viettel group, which is operating well in Africa, believes that Africa’s population of 1 billion is a huge market for Vietnamese investment. Many domestic businesses are now focused on this market but not well coordinated as they should be. They still lack up to date market information and are easy to run into risk in the face of local banks operating at a low level efficiency. They also face a lot of difficulties in labour recruitment.
So, Dung insists, it is very important for them to grasp the pros and cons when doing business in Africa.
The VCCI has recently established a Vietnam-Africa-Middle East Business Forum which serves as a bridge to promote trade exchange and economic cooperation and also as a channel for businesses to get updated on market trends in the region.
Deputy Minister of Foreign Affairs Bui Thanh Son says there is plenty of opportunity for those who really understand African partners and know how to establish cooperative ties with them within the legal framework of trade and investment.
Sharing the same view, Kwakwa adds opportunity always comes with challenge. The key to successful business is to fully understand the market demand and customer taste.
Angele Bonane from International Francophonie Organisation (OIF) suggests that Vietnamese businesses should create trust among African importers by improving the quality of products and promoting sales and marketing.
(VOV)
