Vietnam-Africa information gap hampers trade
March 11, 2008 HANOI, March 11 (Xinhua) — The modest level of trade relations between Vietnam and Africa is due to the vast geographic distance, resulting in a lack of market information and high transport and storage fees, local newspaper Vietnam News reported Tuesday.
Vietnam’s Ministry of Industry and Trade said there are too few trade promotion offices in Africa to help both Vietnamese and African enterprises to study and penetrate new markets. Besides, African firms are mostly small- and medium-sized with low payment capacity.
Vietnam’s commercial counselor in South Africa, Do Quang Liem, blamed inadequate trade levels on cultural differences and inefficient export route through intermediate countries.
Vietnam’s exports to Africa topped 685 million U.S. dollars in 2007. Export values reached 46 million dollars to Morocco and 16 million dollars to Benin.
African countries have great demand for agricultural products such as rice, pepper, coffee and rubber, as well as garments and electronics. Their quality and design demand are not as strict as that of the European Union, the United States and Japan, making African markets suited to the production capacity of developing countries like Vietnam, the ministry said.
To foster exports to African nations, the ministry suggested that more trade offices be opened in Africa to facilitate cooperation relations and supply enterprises with effective trade information. By further studying African customs, consumer habits and market demand, Vietnamese firms can draw up more effective export strategies in such sectors as agriculture, forestry, food processing, manufacturing and footwear.
Bilateral and multilateral negotiations on trade agreements also need hastening between Vietnam and African countries to create a proper legal framework for expanding their trade cooperation, said the ministry.
View Printer Friendly Version
Email Article to Friend
Reader Comments