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| Vietnamese Ambassador to Saudi Arabia Dang Xuan Dung. (Source: Vietnamese Embassy in Saudi Arabia) |
Saudi Arabia is currently one of Vietnam's leading economic partners in the Middle East with an annual two-way trade turnover of nearly 2.7 billion USD in 2022. According to the Ambassador, what opportunities in economic cooperation await the two countries ahead?
As you commented, it can be said that Saudi Arabia is our leading economic partner in the Middle East. First of all, Saudi Arabia is the largest market in the Gulf Cooperation Council (GCC). In addition, both countries have a need to strengthen relations so that the two economies can complement each other, especially in the context of our country implementing the Socio-Economic Development Strategy for the 2021-2030 period and rising to the second position in ASEAN in terms of import-export turnover, while you are actively and urgently promoting the implementation of the goals of the Vision 2030 Plan to diversify the economy. These are favorable points for the relationship between Vietnam and Saudi Arabia to achieve remarkable developments in recent years, especially in the field of trade.
Notably, in the first 7 months of 2023, we exported over 608.2 million USD worth of products to Saudi Arabia, up more than 60% over the same period in 2022, and imported over 956.5 million USD, down 11.4%. Another good thing is that the trade deficit has decreased from over 699 million USD to over 348 million USD, showing that Vietnamese products are increasingly asserting their position in this market.
With that result, I believe that economic cooperation between the two countries is facing many great opportunities in the coming time.
In terms of trade , our businesses have the opportunity to increase exports of products that are our strengths and that the Saudi Arabian market has a large consumption capacity, such as agricultural products, seafood, food, textiles, construction materials, machinery, equipment, computers, electronic products and electronic components, etc.
Regarding human resources , within the framework of the Vision 2030 Plan, the Saudi Arabian Government is accelerating the implementation of “mega-projects”. Therefore, Vietnam will have many opportunities to supply skilled human resources such as engineers, skilled workers in the fields of construction, oil and gas, and further in hotels, restaurants, nurses, nursing… when Saudi Arabia aims to attract 100 million tourists by 2030.
Regarding tourism , cooperation in this field promises a lot of development potential for a number of reasons, such as Saudi Arabians have the habit of traveling as a family, taking long vacations, and are willing to spend and shop at a higher level than tourists from other countries. Therefore, our tourism businesses need to prepare attractive tour packages and have promotional strategies to attract tourists from Saudi Arabia and the entire Middle East region.
Immediately after the policy of granting Evisa to citizens of all countries was implemented, we noticed that many Saudi Arabian citizens and citizens of other countries working and living in Saudi Arabia expressed interest and planned to travel to Vietnam.
This is a good sign not only for Vietnam's tourism industry but also opens up opportunities to increase trade exchanges because many Saudi Arabian tourists will combine tourism with exploring business and investment opportunities in Vietnam.
From September 11-13, 2023, the Ministry of Foreign Affairs will coordinate with the Saudi Arabian Embassy and the Riyadh Chamber of Commerce and Industry to welcome a Saudi Arabian business delegation to learn about the Vietnamese market. How does the Ambassador assess the significance of this event?
| With over 50 businessmen, investors and representatives from several ministries and sectors of Saudi Arabia, this can be considered the largest business delegation from Saudi Arabia in particular and the Middle East in general to Vietnam in recent times. The visit of the business delegation was carried out in the context that both our and your businesses want to expand their markets and scale of cooperation. |
We believe that this will be a good opportunity for businesses from both countries to meet directly, exchange information, learn about cooperation methods, and at the same time, it is also an opportunity for us to further promote our image, country, and people to Saudi Arabian businesses, affirming that Vietnam has the potential and capacity to produce the products you need.
I believe that the visit will create more motivation for Saudi Arabian businesses as well as businesses in other countries in the region to come to Vietnam to learn and seek investment and business opportunities.
It is known that this is the first time the leader of the Riyadh Chamber of Commerce and Industry has led a business delegation to Vietnam. Why Vietnam, Ambassador? What opportunities do Saudi Arabian businesses see?
From the Embassy's perspective and through discussions with local entrepreneurs and investors, I have noticed three noteworthy points: First , Vietnam is currently considered by businesses in the Middle East as a bright spot in Southeast Asia, with many types of products that the region has great demand and consumption for, such as agricultural and aquatic products, food, telephone products, electronic components, machinery, equipment, textiles, furniture, charcoal, agarwood, construction materials, bricks, paving stones, etc.
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| Ambassador Dang Xuan Dung and Embassy staff introduce Vietnamese export products at a product exhibition in Al-Ahsa Province, Saudi Arabia. (Source: Vietnamese Embassy in Saudi Arabia) |
Second , the composition of this business delegation (including many different business sectors such as industry, mining, agriculture, tourism, entertainment, retail, agarwood, textiles, interior and decoration, chemicals, rubber, plastics, food, beverages, information technology, medical and beauty services, etc.), shows that Saudi Arabian companies highly appreciate our production capacity in many fields, the potential for multi-industry cooperation with Vietnamese partners as well as investment opportunities in our country.
Third , I think Saudi Arabia's own internal needs, such as food security, also push Saudi Arabian companies to diversify their product supply, especially in the current volatile world context.
Recently, Vietnam has issued the Project “Strengthening international cooperation to build and develop Vietnam’s Halal industry by 2030”. This is the first project to provide major national orientations to open up the potential Halal market and Saudi Arabia is one of the priority partners and markets. What does the Ambassador think about the potential for cooperation between businesses of the two countries in this field?
First of all, it is a fact that many Vietnamese companies have been exporting Halal products to Muslim countries. However, in order to penetrate deeper into the global Halal product market with a scale of over 2.2 trillion USD in 2022 and forecast to increase to nearly 4.2 trillion USD in 2028, we need to strengthen the construction and development of the Halal industry in a systematic way to take advantage of the existing opportunities.
The project “Strengthening international cooperation to build and develop Vietnam’s Halal industry by 2030” chaired by the Ministry of Foreign Affairs and receiving coordination from ministries, departments, sectors, businesses and associations… has recently been approved by the Prime Minister, showing that we are on the right track.
The project provides major national orientations on mobilizing international resources to build and develop Vietnam's Halal industry comprehensively, helping our businesses participate deeply and effectively in global Halal product production and supply chains.
Saudi Arabia is one of the largest markets in the Middle East, with a large demand for many agricultural products, seafood, food, fashion, pharmaceuticals, cosmetics, etc. This shows that the potential for cooperation between businesses of the two countries in the Halal field is huge.
What are the main opportunities and challenges for Vietnamese enterprises when entering the Saudi Arabian Halal market? What is the Ambassador's advice for Vietnamese enterprises interested in and wanting to invest in the Saudi Arabian market?
In my opinion, there are two main challenges for businesses when penetrating this market.
Firstly , not many of our businesses and employees understand and grasp the regulations related to Halal products because those regulations are related to Islamic rules and regulations. Furthermore, our businesses do not have large-scale facilities for manufacturing and processing products that meet Halal standards.
Second, our Halal certification centers are few and newly established, and have not yet received widespread recognition from many countries, including Saudi Arabia. Therefore, many export enterprises have to access Halal certification services from centers abroad, making the cost of certification higher.
From the Embassy's perspective, we would like to give some notes to Vietnamese businesses that are interested in and want to invest in the Saudi Arabian market as follows:
Firstly , it is necessary to carefully research information about partner businesses, customer preferences as well as regulations and procedures for granting Halal certification, ensuring food hygiene and safety to ensure that goods entering the market are cleared promptly, minimizing costs.
Second , you need to be patient in your transactions and avoid being hasty to avoid losing opportunities for cooperation because business practices in Saudi Arabia and some other Arab countries are different from those in the US or Europe. For example, during the month of Ramadan, it is difficult to contact partners during the day because during this time they fast, drink and focus on performing the ritual.
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| Ambassador Dang Xuan Dung and delegates cut the ribbon to inaugurate the Amazing ASEAN Week at Lulu Supermarket, from September 6-12, 2023. (Source: Vietnamese Embassy in Saudi Arabia) |
Third , it is necessary to send samples for customers to try, evaluate quality, design, etc. Businesses need to pay attention to packaging specifications so that customers can clearly see the product inside, with information in English and Arabic.
Fourth , in addition to packaging and labeling according to customer requirements, we need to focus on building our own brand for our products to create a position in the market.
Fifth , if you want to call for investment or cooperate with a Saudi Arabian partner, you must provide detailed information about the project. The project description must be carefully prepared and highly convincing in terms of feasibility, payback period, profit rate, etc. for your consideration.
Economic diplomacy continues to be one of the key activities of the diplomatic sector in general and of Vietnamese representative agencies abroad in particular. How has the Vietnamese Embassy in Saudi Arabia promoted this work in recent times, Ambassador? Could you please tell us about the Embassy's efforts in connecting businesses and promoting the market between the two sides?
In recent years, economic diplomacy with its basic contents has always been a focus of the Embassy's activities. In that spirit, the Embassy has proactively implemented many specific measures suitable to local conditions so that economic diplomacy can achieve better results.
Firstly , in terms of trade, we have proactively provided information about our businesses to local partners (building a list of businesses, receiving samples for display), and at the same time closely contacted local Chambers of Commerce to conduct economic diplomacy activities, organize product displays, organize business forums, connect B2B, etc.
The Embassy's Trade Department is the direct information connection between businesses of the two countries, providing updated information on trade policies, food safety regulations, and quality measurement standards of the host country so that Vietnamese businesses can understand and comply.
In addition, the Embassy also regularly helps verify and examine partners and businesses and issues warnings to ensure safety in transactions with new partners, thereby helping to limit unnecessary risks for Vietnamese businesses.
Every year, the Embassy coordinates with Lulu Supermarket and ASEAN countries to launch new products during Amazing ASEAN Week to promote Vietnamese export products to local consumers and the Diplomatic Corps. This year, Amazing ASEAN Week was held from September 6-12, and received positive responses from customers right from the first days of opening.
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| Ambassador Dang Xuan Dung speaks at the Amazing ASEAN Week, taking place from September 6-12, 2023. (Source: Vietnamese Embassy in Saudi Arabia) |
From September 17-20, for the first time, the Embassy will attend the largest food fair in Saudi Arabia (Foodex Saudi) to promote products, connect information, and find partners to help a number of Vietnamese businesses.
Second , regarding investment, we increase our understanding of information and characteristics of local public investment funds and private investment funds, investment areas that they are interested in and that we have needs for, and methods of approaching these funds to advise interested Vietnamese businesses. At the Investment - Trade Forums held in many localities, in addition to promoting trade, we also encourage you to pay more attention to Vietnam's preferential foreign investment policies.
Third , regarding tourism, we have actively provided information, introduced and connected our businesses with local partners, integrated the promotion of the image, country, people of Vietnam as well as the scenic spots of our country in economic diplomacy events organized by the Embassy. Such activities have contributed to bringing the image of Vietnam closer to the local public.
Finally , the most vivid evidence is that the Embassy, together with the Riyadh Chamber of Commerce and Industry, organized a delegation of businesses and investors to visit Vietnam this time. Personally, I really hope that the visit will be successful, bringing practical results to both sides, truly fulfilling the direction of our Government on taking businesses and people as the center of service.
On this occasion, I would also like to affirm that the Vietnamese Embassy in Saudi Arabia is ready to accompany businesses interested in exploring the market, increasing exports to further spread "Made in Vietnam" products, promoting economic diplomacy in general, contributing to the country's economic growth.
Thank you very much Ambassador!
Implementing Directive No. 15 - CT/TW of the Secretariat on economic diplomacy to serve national development, in order to further enhance the effectiveness of economic cooperation between Vietnam and Saudi Arabia, the Ministry of Foreign Affairs will coordinate with the Saudi Arabian Embassy in Hanoi and the Riyadh Chamber of Commerce and Industry (Saudi Arabia) to organize the Vietnam-Saudi Arabia Business Forum on September 11, 2023 at the Ministry of Foreign Affairs Office, No. 2 Le Quang Dao, Nam Tu Liem, Hanoi. The forum is expected to have the participation of nearly 500 delegates, including leaders of ministries, sectors, localities, investors, enterprises, representatives of organizations and business associations of both sides, including more than 50 Saudi Arabian enterprises operating in many fields such as energy, information technology, iron and steel industry, mining, industrial spare parts, construction, investment, healthcare, cosmetics, pharmaceuticals, tourism, human resources, transportation, retail, wood products, garment, agriculture, seafood, etc. This is the largest business delegation from Saudi Arabia in particular and the Middle East in general to Vietnam to explore cooperation and business opportunities with Vietnamese localities and businesses. |
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