Positive growth in bilateral trade between Vietnam and Eurasian region

An overview of the forum.

So it was said at the 2020 International Trade Forum on Cooperation with Partners from the Eurasian Region, hosted by the Ministry of Industry and Trade (MOIT) on December 10.

Following the success of the first Vietnam - Eastern Europe Trade Forum in May 2019, this year's forum aims to update the business community with information on policies and markets in different countries in the Eurasia region, discover more about the needs of businesses and support them to expand further into export markets, as well as promoting the export of Vietnam's leading products to the Eurasia region, including Eastern Europe and Central Asia.

The forum was an online conference with the participation of representatives from local departments of Industry and Trade and Trade and Investment Promotion Agencies from across the northern region, as well as those from business associations and enterprises, ambassadors and diplomatic delegations from Eurasian countries and counsellors and commercial chiefs from Trade Offices of Vietnam in the 27 countries in the region.

Speaking at the event, Deputy Minister of Industry and Trade Dang Hoang An emphasised that traditional friendship and multifaceted cooperation between Vietnam and countries in the Eurasian region have been in place for a long time and have been nurtured by leaders and people from both sides on the basis of trust, understanding and a willingness to help one another. This is an invaluable asset, an important resource for economic development and trade as well as investment relations between Vietnam and the Eurasian region.

Citing data from Vietnam Customs, Deputy Minister An said that in 2019, two-way trade turnover between Vietnam and the region reached US$10.4 billion, an increase of 20.78% compared to 2018, accounting for 2% of the total import-export turnover of Vietnam to the rest of world. Of which, Vietnam's exports have increased by 6.43% to US$7.2 billion, showing the bilateral trade relationship between Vietnam and countries in Eurasia is constantly developing.

In particular, in the first 10 months of 2020, despite facing uncertainties in global trade due to COVID-19, bilateral trade between Vietnam and the Eurasian region still witnessed impressive growth, with a total two-way turnover of US$10.34 billion, up 17.98%. Of which, exports reached US$7.18 billion, up 16.15%, while imports reached US$1.16 billion, up 22.35% over the same period last year.

Participants at the forum emphasised that the room for growth in Vietnam's exports to the Eurasian region is still large, as the region's total import turnover for the first 10 months this year was about US$1.4 trillion, Vietnam's export turnover only accounting for a 0.5% market share.

In future, the effective utilisation of the Free Trade Agreement between Vietnam and the Eurasian Economic Union and the European Union (EU) will also promote stronger trade, industry and investment cooperation between Vietnam and Eurasian countries in general, as well as with Eastern Europe and Central Asia in particular.

In addition, Vietnam and its Eurasian partners have established solid institutions and legal frameworks for the development of bilateral cooperation, including 14 intergovernmental committees/joint committees and one consultation mechanism for bilateral economic cooperation. Therefore, it can be said that Vietnamese businesses have a favourable premise to promote trade more strongly with countries in the region, as well as taking advantages of economic support and reducing tariff and non-tariff barriers.

Delegates also discussed the market situation and their experiences in expanding markets and doing business with countries in the region, as well as offering solutions to help businesses overcome difficulties and challenges. They emphasised the important role of the Vietnam trade system in Eurasian countries and embassies and trade representations of countries in the region stationed in Vietnam in providing updated market information to the business community, helping increase the opportunities for import and export and expand and diversify products.

According to Pham Thi Hong Hanh, Head of the Integration and Investment Office under the International Cooperation Department, Ministry of Agriculture and Rural Development, Vietnamese trade offices in foreign countries are important bridges for trade promotion and the introduction of Vietnam's image to the world, especially in key export products such as seafood, fresh and processed fruits and vegetables, electronics and electronic components, textiles, furniture and footwear.

Deputy Minister An affirmed that as the lead agency for bilateral and multilateral cooperation activities, his ministry will continue to accompany the business community and through intergovernmental committee mechanisms continue the removal of barriers to facilitate trade and investment.

Source: NDO