Vietnam - Bulgaria: Towards new heights in trade cooperation

After 74 years of establishing diplomatic relations, Vietnam and Bulgaria have always nurtured and developed positively in all fields; in which, economy is one of the important pillars of cooperation.

In particular, Bulgaria is one of the European Union (EU) countries that has taken the lead in ratifying the Vietnam-EU Framework Agreement on Comprehensive Partnership and Cooperation (PCA) as well as promoting the signing and ratification of the Vietnam-EU Free Trade Agreement (EVFTA) and the Vietnam-EU Investment Protection Agreement (EVIPA). Therefore, President Rumen Radev's visit to Vietnam, taking place right before Vietnam and Bulgaria prepare to celebrate the 75th anniversary of establishing diplomatic relations, has contributed to creating a great impetus in developing the relationship towards new heights.

Electronic components are one of Vietnam's export items to Bulgaria. Photo: Danh Lam/VNA

Complementary relations Minister Nguyen Hong Dien emphasized: Vietnam - Bulgaria are two countries with a long-standing traditional relationship. Since the 1950s, Bulgaria was one of the first 10 countries in the world to recognize and establish diplomatic relations with Vietnam. Since then, the two countries have always supported each other on every step of development. Currently, Vietnam is one of the 40 countries with the largest economic scale in the world. In particular, Vietnam has an annual import-export turnover of over 700 billion USD and is one of the 20 countries with the largest international trade scale in the world. Notably, Vietnam is also one of the 15 countries with the best environment to attract foreign direct investment (FDI) and the annual FDI attraction rate grows at an average of 5-6%/year. Moreover, Vietnam has been and is the world's factory, so it is in great need of cooperation with other countries in research and innovation, training human resources, investing in business for mutual development... Therefore, through Vietnam, Bulgarian enterprises can access the regional market of ASEAN countries or other international partners of which Vietnam is also a member in the signed FTAs. According to Minister Nguyen Hong Dien, recently Vietnamese enterprises have begun to invest abroad; including countries in Europe and America in new fields such as information technology, electric vehicle production, milk processing and agricultural products... Therefore, Minister Nguyen Hong Dien hopes that the Bulgarian Government will create more favorable conditions for Vietnamese enterprises to access and penetrate deeper into the Bulgarian market for cooperation and development. “If investing in Vietnam at this time, Bulgarian enterprises should invest in the fields of innovation and science and technology, digital transformation and green transformation...”, Minister Nguyen Hong Dien emphasized. At the 24th Session of the Vietnam - Bulgaria Intergovernmental Committee, Deputy Minister of Economy and Industry of Bulgaria Nikolay Pavlov also affirmed: Bulgaria is one of the countries with an attractive investment environment for Vietnamese enterprises. In particular, Bulgaria always gives Vietnamese enterprises special incentives in the process of cooperation and investment. According to Deputy Minister Nikolay Pavlov, Bulgaria currently has about 350 Vietnamese workers living and working. Enterprises in Bulgaria are in need of expanding their business scale but the available workforce is not enough to meet the demand, so labor cooperation will be a potential field for the two countries. In addition, the two sides can promote cooperation in agriculture, high technology, energy, etc. According to statistics from the Ministry of Industry and Trade, in the first 10 months of 2024, the trade turnover of goods between Vietnam and Bulgaria reached about 229.2 million USD, an increase of 30.3% over the same period in 2023. Of which, exports reached 167.25 million USD, an increase of 37.8% and imports reached 61.95 million USD, an increase of 13.5%. The trade surplus in the first 10 months of 2024 reached 105.3 million USD. Citing data from Vietnam Customs, the Ministry of Industry and Trade said: In 2023, the total import-export turnover of goods between the two countries reached 211.4 million USD, an increase of 3.7% over 2022, with a trade surplus of 69.6 million USD; Of which, Vietnam's exports to Bulgaria reached 140.5 million USD, down 0.4% compared to 2022. The main export items include: cotton yarn, coffee beans, natural rubber, rice, cashew nuts, clothing, handbags, leather shoes, sports shoes, computers, mobile phones, electronic components, office furniture, household plastic products, raw tobacco... On the other hand, Vietnam's imports from Bulgaria reached 70.9 million USD, up 13% compared to 2022. The main import items are still scrap iron, kaolin, chemicals, plant growth stimulants, wheat, dried fruits, alarm equipment, sunflower seeds, vegetable oil, spirits, wine, pharmaceuticals, veterinary drugs, pesticides, raw fabrics and accessories. According to trade experts, in the period 2015 - 2023, bilateral trade between the two countries doubled from 102.5 million USD to 211.4 million USD. Notably, Vietnam's exports to Bulgaria increased 3.5 times from nearly 41 million USD in 2015 to 140.5 million USD in 2023. However, the above figures are not commensurate with the potential and relationship of the two countries. Specifically, Vietnam's export turnover to Bulgaria in 2023 only corresponds to 0.24% of Bulgaria's imports, while Bulgaria's exports to Vietnam only account for 0.018% of Vietnam's imports. Many opportunities for exploitation Mr. Vu Ba Phu - Director of the Trade Promotion Agency (Ministry of Industry and Trade) said: The goods exchanged between the two countries are highly complementary to each other and there is still a lot of room for exploitation. But to increase import-export turnover and investment, the role of agencies related to trade and investment is extremely important.

According to Mr. Vu Ba Phu, the Ministry of Industry and Trade of Vietnam has closely directed the agencies under the Ministry to focus on trade and investment promotion activities in the field of industry and trade with the EU market; including Bulgaria through various channels and forms. Therefore, the Ministry of Industry and Trade has a Vietnamese Trade Office in Bulgaria, responsible for monitoring the market, seeking import-export opportunities, bilateral investment, supporting businesses of the two countries to connect, exchange information, and find partners... The European - American Market Department under the Ministry of Industry and Trade of Vietnam is responsible for general monitoring of trade policies and the EU market; including Bulgaria. The Trade Promotion Agency under the Ministry of Industry and Trade of Vietnam is responsible for implementing a variety of trade promotion activities such as providing market information for trade promotion through conferences and seminars; organizing participation in fairs and exhibitions or organizing trade and investment delegations, training to improve the capacity of trade and investment promotion practices for organizations and businesses... In particular, the Trade Promotion Agency has signed two memorandums of understanding (MoUs) with two organizations, the Bulgarian Chamber of Commerce and Industry (BCCI) and the Bulgarian Small and Medium Enterprise Promotion Agency (Bulgarian Ministry of Economy). Trade experts said: With the EVFTA agreement taking effect from August 2020, in addition to the development orientation of the Bulgarian Government, it is forecasted that in the coming years, the period of 2025-2030 will be a stepping stone for Vietnamese products to expand or penetrate the market share with a growth rate of about 8-15%/year with traditional products having strengths. Furthermore, Bulgaria has just joined the Schengen area in March 2024 and is completing its accession to the Eurozone, the period of 2025 - 2030 could be a period of explosion and consolidation of market share for Vietnamese goods in the area due to its geographical location and consumer standards that are not as strict as those of Western Europe. Mr. Phung Manh Ngoc, Director of the Department of Chemicals (Ministry of Industry and Trade) expressed: In Vietnam, the chemical industry is considered a fundamental industry in the process of development, industrialization and modernization of the country. Therefore, Vietnam hopes to receive attention and investment cooperation with developed countries; including Bulgaria with the orientation of attracting investment in green industry, using new energy. The chemical industry in Vietnam is ready to welcome, support and coordinate with the Ministry of Economy and Industry of Bulgaria as well as Bulgarian enterprises when they come to invest and expand the scale of investment; contributing to increasing trade of goods between the two countries. In particular, Vietnam is ready to act as a gateway for Bulgarian products and goods to enter the Southeast Asian region and hopes that Bulgaria will create more favorable conditions for Vietnamese goods to penetrate the European market. To promote the bilateral relationship between Vietnam and Bulgaria, the Ministry of Industry and Trade recommends that businesses proactively explore the market, seek partners, and promote products in the Bulgarian market. In addition, businesses need to take full advantage of the benefits of the Free Trade Agreement (Vietnam - EU) EVFTA to boost the export of Vietnam's key products to Bulgaria. This could be a gateway for Vietnamese goods to penetrate the markets of other EU countries. In addition, businesses need to coordinate with the Ministry of Industry and Trade and the Vietnam Trade Office in Bulgaria to connect and bring Vietnamese goods to the supermarket system in Bulgaria because the products sold in this market have many similarities as well as prices and quality that Vietnamese goods can meet. The Ministry of Industry and Trade also noted that Vietnamese enterprises can connect with key supermarket systems in Bulgaria including Billa and Fantatisco to take advantage of the EVFTA as well as a springboard to strengthen, expand market share and promote Vietnamese goods in Bulgaria for the period 2025-2030. In particular, increase participation in high-level delegations working in Bulgaria as well as the Vietnam-Bulgaria business forum, fairs or events organized on the sidelines of high-level visits to meet directly with Bulgarian enterprises. Source: https://baotintuc.vn/kinh-te/vietnam-bulgaria-huong-toi-tam-cao-moi-trong-hop-tac-thuong-mai-20241123093954941.htm