Nguyen Tuan, deputy director of the HCM City Investment and Trade Promotion Centre, speaks at a seminar on exports to Malaysia in the city on July 16 (Photo: VNA)HCM City (VNA) - Malaysia could become one of the biggest exportmarkets in ASEAN for Vietnam, especially in the post-pandemic period, a cityofficial said at a meeting in HCM City on July 16.
Nguyen Tuan, deputy director of the HCM City Investment and Trade PromotionCentre (ITPC), told a seminar on exports to Malaysia organised by the centrethat economic and trade cooperation between the countries has been growing inrecent years.
Vietnam and Malaysia are members of the ASEAN Economic Community (AEC) and theComprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP),he said.
In 2016, Malaysia surpassed Singapore to become Vietnam’s second largesttrading partner in ASEAN after Thailand, he said.
It is the third largest export market for Vietnam in the region after Thailandand Cambodia, he added.
Bilateral trade last year was worth 11.1 billion USD, with Vietnam’s exportsbeing 3.8 billion USD, or 15 percent of the country’s total export to ASEANmember countries.
The pandemic has severely affected almost all socio-economic aspects likehealth, transportation, tourism, education and trade, he said.
Due to the pandemic, in the first half of the year Vietnam’s exports to Malaysiadeclined by 17.4 percent year-on-year to 1.6 billion USD, he said.
“The centre has taken drastic measures to support businesses toincrease exports by developing new supply chains and expanding and diversifyingexport markets.”
Raphy Md Radzi, Malaysia’s trade commissioner in HCM City, said Vietnam andMalaysia are important trade partners and should enhance promotions to achievetheir trade targets after the pandemic.
Vietnamese exporters could also coordinate with Malaysian service companiesfor distribution of their goods globally, he added.
Theng Bee Han, chairman of the Malaysia Business Chamber, too said, “Vietnamesebusinesses should not only consider Malaysia a potential export market but alsocooperate with Malaysian companies to tap the world market.”
Malaysia has a large Muslim population, and thereforeexports to it must meet Halal standards for products like food,medicine and cosmetics, and should also comply with foodsafety, labelling and traceability regulations, he said.
It is expected that by 2030 the global Halal industry will beworth 30.6 trillion USD, including 1.1 trillion USD in the Asia Pacific region,with Malaysia accounting for 228.5 billion USD, he said.
Vietnamese farm produce and seafood products meet Malaysia’s foodstandards, and when they receive Halal certification, they could be exported tothe country, he said.
Vietnam exports computers, electronic products and parts, mobilephones, iron and steel, glass products, vehicles, garments and textiles, andwood and timber products to Malaysia, and imports petroleum, electroniccomponents, plastics, chemicals, and textiles from it.
Malaysia also has great demand for farm produce such as rice, fruits,vegetables, and pepper, office clothes, seafood, footwear, office furniture, inwhich Vietnam has strengths.
It is among the largest rice importers in ASEAN, with annual demand at900,000-1 million tonnes.
Last year, Vietnam surpassed Thailand to become Malaysia’slargest rice supplier with shipments worth nearly 219 million USD.
In recent times, Malaysia’s demand for medical masks, gloves andother protective equipment has surged due to the pandemic.
Malaysia’sGDP last year topped 364.7 billion USD, making it the 33rd largest economy inthe world and third largest in Southeast Asia.
Its income per capita was 11,200 USD./.
VNA
