Phan Thuy Thanh, head of Viet Nam’s delegation to European Commission (EC)

"Vietnamese trademarks needed"

The European Union (EU) is one of the biggest investors in Viet Nam but the total amount of capital invested lags far behind the potential of a 25-state union. There are two reasons for this situation.

One is due to the European habit of not "putting all eggs in one basket." The second reason is that they are awaiting changes in Viet Nam’s investment climate after joining the WTO.

In fact, investment from the EU has constantly increased, focusing on hi-tech industries, including oil and gas, electricity, water supply, infrastructure, agricultural product and food processing and telecom.

Along with attracting investments, Viet Nam must take advantage of EU’s advanced technologies to enhance its capacity.

Besides, Vietnamese businesses have to build up Vietnamese trademarks of their products being exported to the EU.

The EU had granted some preferences to Viet Nam’s textiles and garments, like abolishing export quotas, even before Viet Nam’s WTO membership, and offered the Generalised System of Preferences (GPS). But the Vietnamese businesses have not yet increased their exports because of shortcomings in production.

In my opinion, Vietnamese businesses, especially small and medium sized enterprises, should take the initiative in increasing competitiveness, capacity, market awareness and knowledge on international trade rules and regulations.

Besides, businesses should equip themselves with superior skills for businesses negotiations.

Viet Nam’s delegation to the EC has suggested a master plan for developing long-term relations with the EU. The delegation has actively taken part in lobbying with the EU to wipe out export quotas for Viet Nam’s textiles and garments, grant tariff preferences and conclude bilateral and multilateral negotiations for WTO accession.

Diplomatic initiatives for economic development have always been a top priority for the delegation.

Nguyen Thanh Tan, ambassador to Australia

"Products should maintain quality"

Australia is a big market with high purchasing power thanks to its high per capita income of US$32,000 per year. At present, Australia is the seventh biggest trade partner of Viet Nam with a turnover of $3.06 billion last year.

However, Vietnamese businesses have not yet fully tapped the potential of this market. One of the reasons is geography. Australia is a huge country, and Vietnamese products are available only in Melbourne and Sydney but not in other cities like Perth or Adelaide.

Australia has strict market regulations. Vietnamese goods are refused by the Australian customs if they do not have certificates of origin.

Also, domestic Vietnamese businesses should do their best to satisfy the demands of Australian tourists, so as not to create a prejudice against Vietnamese products.

We have at present carried out a plan of establishing an independent agency for quality control in Viet Nam. The agency will help Australian businesses evaluate Vietnamese goods before export to Australia. I think this would contribute to promoting trade between the two countries.

Nguyen Thac Dinh, ambassador to Brazil

"Learning Portuguese essential"

Last year, Viet Nam-Brazil trade turnover reached $113.8 million, with Viet Nam in trade deficit. Geographic distance and high costs of transportation have made Vietnamese goods less competitive.

Brazil with a population of 183 million is a big and potential market for Viet Nam.

Viet Nam’s footwear, garments and handicrafts are big favourites in Brazil. So the potential for exports exist.

The two countries have further understood each other’s markets and potential thanks to businesse forums held in Brazil. This year, two-way trade has touched $190 million, an increase of 68 per cent from last year.

To better exploit the market, Vietnamese business personnel should learn Portuguese.

Brazil has recently succeeded in producing ethanol extracted from sugarcane for use as substitute fuel. They are willing to share their experience and knowledge in this field with Viet Nam.

Tran Duy Thi, ambassador to the Republic of South Africa

"SA, a gateway to Africa"

South Africa in particular and African countries in general are new markets for Vietnamese businesses.

Getting a foothold in South Africa’s market means an entry to the markets of Mozambique, Namibia, Madagascar, Zambia and Zimbabwe.

To do business, Vietnamese enterprises should conduct careful research and set long-term strategies.

Since the country is entering the markets late, Vietnamese companies face stiff competition with Chinese, Indian and other businesses from ASEAN countries.

However, African countries want to co-operate with Viet Nam in the fields of agriculture, forestry, health care, education, job training, fisheries and science and technology. Namibia wants Viet Nam’s help in achieving the national target in rice production of three tonnes per ha to meet their demand.

Vietnamese enterprises should also learn about African countries’ laws and legal systems which are very strict. African businesses on the whole are meanwhile seeking direct partners.

Phan Van Thang, general counsellor to United Arab Emirates (UAE)

"UAE has a huge potential market"

Viet Nam’s trade with the UAE is the highest compared to other countries in the Persian Gulf region.

The non-tariff structure of UAE’s imports and exports provides Viet Nam with a big chance in this market. This is a potential market for Viet Nam’s rice and other agricultural products.

In the Asian region, UAE companies have trade only with Thailand, Indonesia, Malaysia and Singapore. So, diplomatic agencies have to take the responsibility to popularise Viet Nam among UAE’s investors. At present, some major UAE corporations are exploring three projects with investment capital potentially reaching $4.1 billion in Viet Nam.

The country has several giant financial groups. But they don’t understand much about Viet Nam’s market. Recently, UAE’s financial corporations have shown interest in Viet Nam’s economy and investment climate. The WTO accession will make them further keen on Vietnamese market.

The UAE is also a potential market for Vietnamese labour. At present, there are 3,500-4,000 Vietnamese guest workers in the country. Labour demand in the market is very high. But to promote labour exports, we require agreements between the two governments.

Source: Vietnam News