According to statistics released by the General Department of Customs, Vietnam - Taiwan trade turnover approximated US$11 billion in 2012, of which Vietnam earned US$2.5 billion and Taiwan took US$8.5 billion. In the first 8 months of 2013 alone, Vietnam fetched US$1.42 billion from exports to Taiwan, an increase of 7 percent year on year. Vietnam's key exports to Taiwan in the January-August period included telephones and accessories, footwear, apparels and textiles, seafood and rubber. The largest forex earner for Vietnam was telephones and accessories with over US$304.9 million, representing an on-year rise of 39.2 percent, followed by garments and textiles with US$125.7 million and seafood with US$88.63 million, down 6 percent and up 3 percent year on year, respectively. The highest growing export of Vietnam to Taiwan was computers, electronic products and components, recording 113.6 percent and earning US$60.8 million. Other export revenue gainers were footwear (9.6 percent), woodworks (5.9 percent), fibre and yarn (56.6 percent) and ceramic products (20.2 percent).

Meanwhile, Vietnam spent nearly US$5 billion on imports from Taiwan from January to August 2013. Its major imports consisted of input materials for domestic production such as animal feed, petroleum, chemicals, plastic materials, garment and textile materials, leather and footwear materials, iron and steel, computers, electronic devices and components.

At the 20^th conference on trade cooperation of Vietnam - Taiwan businesses held recently in Ho Chi Minh City, Mr Hoang Van Dung, Standing Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), said the potential for trade cooperation Vietnam and Taiwan remains very huge. Typically, the Taiwanese market has broad distribution channels and large and modern supermarket chains and they usually buy goods from importers and wholesalers. This practice is an obstacle for direct export to this market. Hence, to penetrate into this market potential, the best way for Vietnamese exporters is to establish relations with Taiwanese importers because they know local consumer tastes, habits and market trends.

Mr Chen Chao Cheng, Chief Secretary of the Taiwan Trade Association in Vietnam, recommended Vietnamese enterprises to pay attention to regulatory systems and consumer tastes in Taiwan while diversifying exports, improving product quality and registering trademarks. In the business process, essentially, the enterprises must find reputable, capable partners who are willing to cooperate for sustainable development in this potential market.

He added that, apart from efforts of enterprises, to increase the bilateral trade, the Government of Vietnam needs to focus on improving regulatory environment, and fulfil bilateral and multilateral trade agreements with Taiwan. In addition to building national marketing strategies for the Taiwanese market, Vietnam should encourage and support businesses to export merchandise and manpower to Taiwan through financial instruments.

Source: VCCI