Vietnam, Egypt strives to US$1 billion bilateral trade

 Vietnam and Egypt has set a target of increasing two-way trade to US$1 billion in the near future.  

“With the strength of an important gateway, Vietnam and Egypt now have a lot of potential for businesses to have access to businesses in the free trade area,” said Deputy Prime Minister Pham Binh Minh.

In his speech at the Vietnam – Egypt Business Forum in Hanoi on September 7, the Deputy PM urged Vietnamese and Egyptian businesses to seek information and promote investment in order to expand bilateral co-operation.

“Vietnam will always create the most favorable conditions for businesses from the two countries to co-ordinate in wide range of sectors including telecommunications, information technology, seaports, shipbuilding, logistics and seafood, in a move to raise bilateral trade to new heights,” the Deputy PM said.

When doing business in Vietnam, Egyptian companies will have a chance to penetrate into the Vietnamese market with a population of 93 million and get access the greater ASEAN market of more than 600 million consumers, the Deputy PM added.

He hoped that Egypt, meanwhile, will serve as a bridge to connect Vietnam with other nations in Africa.

During the forum, Egyptian President Abdel Fattah el-Sisi said Egypt wants to become a strategic center, thus developing logistics and building industrial parks to export products to other nations, as well as implementing projects on land development, renewable energy, and building new administrative urban areas.

He welcomed Vietnamese businesses to invest in developing small-and medium-sized enterprises, shipbuilding, construction, aquaculture, fertilizer, and garment-textiles.

Vietnam and Egypt have signed many co-operation agreements in the fields of economics, trade, investment, culture and tourism.

Egypt has a population of 92 million, with import demand estimated at more than US$80 billion per year. It is described as a lucrative market for Vietnamese exporters. The country is now the third biggest trade partner of Vietnam in Africa.

Two-way trade reached US$316 million last year with US$295 million from Vietnamese exports. Vietnam’s major exports to Egypt include seafood, automotive parts, fibers, black pepper, coffee, rubber and consumer goods, while its main imports are chemicals, honey, petroleum products, milk and dairy products and consumer goods.

Statistics from Viet Nam Department of Customs revealed that Vietnam exported US$191 million worth of goods to Egypt in the first seven months of this year, up 7.5% year-on-year. During the period, fibers recorded the highest export turnover with US$32.1 million, surging 56% year-on-year or accounting for 16.8% of Vietnam’s total export value to the market. 

According to analysts, bilateral trade between the two countries remain modest and has a room to further develop in near future, especially after the first visit of Egyptian President Abdel Fattah el-Sisi to Vietnam on September.

They suggested the two countries' businesses to actively participate in trade fairs, exhibitions and investment seminars to be held in each other country to explore co-operation opportunities.

Vietnamese and Egyptian firms should establish effective market information channels as well as direct business relationships rather than through a third party in order to reduce the risk of doing business./.

Source: vietrade