The cost of transporting goods from Vietnam to the UAE is twice as high as Thailand, making it difficult for businesses to compete, according to Mr. Huynh Bao Khuong.
On the evening of December 1, Prime Minister Pham Minh Chinh and his wife Le Thi Bich Tran met with the Vietnamese community in the United Arab Emirates (UAE), on the occasion of attending the COP28 Conference.
Sharing with the Prime Minister, Mr. Huynh Bao Khuong, head of the Vietnamese community liaison committee in the UAE, said that not only do Vietnamese goods transported to the UAE have high logistics costs, but many other countries also face similar problems. This is a difficulty for many Vietnamese people doing business in the UAE.
Mr. Khuong also expressed that real estate transactions in Vietnam take a lot of time. There are even cases where due to the pandemic, people cannot return to the country and have to make a power of attorney, which results in double taxation.
Therefore, he hopes that the Prime Minister will pay attention to overseas Vietnamese when directing administrative reforms.
Mr. Huynh Bao Khuong, head of the Vietnamese community liaison committee in the UAE. Photo: Nhat Bac
Sharing the same concern, Mr. Nguyen Duc Hoang, a Vietnamese businessman in the UAE, said "the cost of transporting goods from Vietnam is very high, reducing competitiveness compared to Chinese and Thai goods". He hopes the Government will have a macro-level solution to reduce freight rates by sea and air. "Reducing transportation costs will increase the competitiveness of Vietnamese goods", Mr. Hoang expressed.
Another difficulty that many businesses in the UAE face is that although Vietnam exports many agricultural products, most of them do not have geographical indications and are not protected. Many Vietnamese agricultural products are counterfeited. For example, many agricultural products from Vietnam, imported by Thai businesses and then exported to the UAE, carry Thai brands.
Many foreign partners are invited by businesses to Vietnam to explore investment opportunities, but visa policies are still problematic. This barrier not only causes difficulties for businesses but also makes it difficult for Vietnamese tourism to break through.
"I hope the Government will soon take measures to reduce freight costs and have clear geographical indications so that Vietnamese goods can be more competitive when exported abroad," said Mr. Hoang.
Prime Minister Pham Minh Chinh and his wife Le Thi Bich Tran met the Vietnamese community in the UAE on the evening of December 1. Photo: Nhat Bac
Sharing the difficulties of overseas Vietnamese, Prime Minister Pham Minh Chinh said that Vietnam and the UAE are negotiating to sign the Comprehensive Economic Partnership Agreement (CEPA). When talking with the Prime Minister, the UAE President affirmed that "there is no limit to Vietnamese goods entering the UAE". The country wishes to cooperate in establishing a Microsoft Research Center in Vietnam.
In response to the high logistics costs, the Prime Minister said that in the last century, when Vietnam experienced 40 years of war and could not invest in infrastructure, many countries in the region had the same amount of peace. Therefore, their infrastructure was invested in earlier than Vietnam's. In recent times, Vietnam has made efforts to accelerate the construction of transport infrastructure and aviation development. In some areas, Vietnam has surpassed them. In the coming time, the Government will have solutions to support Vietnamese enterprises investing in the UAE so that Vietnamese goods can penetrate more into this market.
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