Promoting export of potential products to West Asia

Potential market block

This is the content presented at the workshop "Promoting the export of potential products to the West Asia region" organized by the Department of Asia - Africa Market, Ministry of Industry and Trade on the afternoon of December 12 in Ho Chi Minh City.

Speaking at the workshop, Deputy Minister of Industry and Trade Phan Thi Thang said that with a scale of 15 countries, a population of nearly 500 million people and a high standard of living, the West Asia region is emerging as a potential export market for Vietnamese enterprises.

In the period 2018 - 2022, trade between Vietnam and the West Asia region recorded remarkable growth. If in 2018, the total two-way trade turnover only reached nearly 14 billion USD, by 2022 this figure had reached nearly 19.5 billion USD, of which Vietnam's exports averaged about 8 billion USD/year. It is forecasted that in 2023, the total import-export value could reach 20 billion USD.

Regarding the structure of import and export goods between Vietnam and West Asian countries, there is a clear complementarity. Vietnam mainly exports to the region the following items: Phones of all kinds and components, computers, electrical and electronic products, agricultural products (rice, pepper, coffee, tea, cashew nuts, vegetables, fruits, etc.), seafood, textiles, footwear, processed foods, wood products, handicrafts, construction materials, etc.

Thúc đẩy xuất khẩu các mặt hàng tiềm năng sang khu vực Tây Á

Deputy Minister of Industry and Trade Phan Thi Thang speaks at the workshop

Among Vietnam's main export products to this region today, in addition to the manufacturing products of FDI enterprises, recently, many agricultural and aquatic products of Vietnam have reached the Middle East market and initially achieved positive results. These include: Cashew nuts (over 300 million USD/year), seafood products (over 250 million USD/year), rice, coffee, pepper (over 100 million USD/year), vegetables and fruits (over 90 million USD/year)...

According to Deputy Minister Phan Thi Thang, Vietnam and countries in the West Asian region still have great potential to continue expanding bilateral trade, because the import-export structure between Vietnam and countries in this region is basically not directly competitive but complementary. This is a favorable condition for the business communities of the two countries to build, consolidate and diversify the supply chain of goods, especially for industries and products where one side has strengths and the other side has demand and vice versa. For example: Vietnamese textiles, footwear, seafood, household goods, coffee, chemicals... or petrochemical products, petroleum, raw aluminum...

Mr. Tran Trung Hieu - Head of Trade Office in Kuwait said that located in the West Asia region, Kuwait is a country with high GDP growth, but poor agricultural development. In Kuwait's economic structure, agriculture accounts for only 0.4% and imports up to 85% of agricultural products.

In addition, this is a country with a high labor import volume, accounting for 2/3 of the country's labor force, so the demand for food is very diverse. This is also a gateway market for exporting goods to African countries.

For Vietnam, our products have now established a certain position in this market, especially agricultural and aquatic products such as tra fish, basa fish, fresh coconut, lychee, etc. "Currently, all supermarkets here have Vietnamese tra fish, basa fish and shrimp products. These products are highly appreciated by Kuwaiti consumers for their quality and more affordable prices compared to similar products from other countries," Mr. Tran Trung Hieu shared.

Take advantage of export opportunities

Mr. Do Quoc Hung - Deputy Director of the Department of Asian - African Markets (Ministry of Industry and Trade) said that although trade cooperation between Vietnam and West Asian countries has improved and achieved remarkable results in recent years. However, the two-way trade turnover is still not commensurate with the real needs and potentials of each side. Therefore, in order for Vietnam's export goods to access the West Asian market more effectively, Mr. Do Quoc Hung noted that Vietnamese enterprises need to study, classify and develop specific strategies for each group of countries in the West Asian region.

Mr. Do Quoc Hung - Deputy Director of Asia - Africa Market Department, Ministry of Industry and Trade spoke at the conference.

Typically, with countries with financial potential (for example, GCC countries), the average income per capita in the host country is often high, the number of foreigners coming to live and work is large, in addition to the group of machinery, electrical equipment, electronics and agricultural and aquatic products, Vietnamese enterprises can research exporting items: Textiles, footwear, construction materials, interior products, processed foods... Meanwhile, with countries such as Türkiye, Iran, Israel..., Vietnamese enterprises can research exporting items that Vietnam has an advantage in and the host country has a demand but cannot produce or the production capacity is limited such as: Rice, coffee, tea, pepper, cashew nuts, tra fish, basa fish, tropical fruits...

According to Mr. Hung, in addition to the efforts of enterprises, to seize the opportunity to promote economic and trade cooperation between Vietnam and West Asian countries, state management agencies, associations, industries and Vietnamese enterprises need to closely coordinate with each other in the exchange of trade promotion delegations and business delegations between Vietnam and West Asian countries. Especially promoting trade through events, tourism promotion activities, culture, and trade exhibitions.

Along with that is strengthening cooperation activities in connecting transportation, maritime transport, logistics, banking, finance, digital transformation... to facilitate economic cooperation and trade exchange between Vietnam and countries in West Asia.

At the same time, encourage and support businesses to develop brands, register for protection of brands and trademarks in the local area to enhance recognition and protection of Vietnamese goods.

In addition, the authorities need to support businesses to bring goods to large supermarket chains in the country such as: Lulu, Choithrams, Al Maya, Spinneys... with Vietnam's strong export products such as: Agricultural and aquatic products, fresh vegetables and fruits, processed foods and household products...

Deputy Minister of Industry and Trade Phan Thi Thang acknowledged that the advantages and opportunities opening up in the relationship between Vietnam and West Asian countries will be an important foundation, creating more motivation and confidence for the business communities of both sides to expand investment, production and business in the future. "The Ministry of Industry and Trade and the Embassies of West Asian countries in Vietnam are ready to support Vietnamese enterprises in implementing cooperation activities in the future," Deputy Minister Phan Thi Thang emphasized.

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