Wooden handicraft products on display in Ho Chi Minh City. (Photo: VNA)Thanks to the risingoil prices, the Middle East is enjoying high growth. Among 16 regional countries, Vietnam has mostly traded with six member nations of the GulfCooperation Council (GCC), namely the UAE, Arab Saudi, Kuwait, Bahrain, Qatar and Oman.
Trade betweenVietnam and the GCC countries has surged from 2.7 billion USD in 2012 to 12.5billion USD in 2021.
VietnameseAmbassador to Kuwait Ngo Toan Thang said that there are abundant opportunitiesfor Vietnamese firms in the GCC market thanks to the sound relations with the GCCcountries and a relatively completed legal corridor for cooperation.
So far, Vietnam hassigned economic, trade and scientific-technological cooperation agreements with five GCCcountries, trade deals with two nations, double-tax avoidance agreementswith five countries and investment protection deals with four countries.Vietnamese products are suitable to the demands of the GCC countries.
Nguyen Tuan, Deputy Director of the Investment and Trade Promotion Centre of Ho Chi Minh City (ITPC), said thatMiddle East countries have high demand for wooden furniture, plastics, grains,garments, footwear, rubber products, meat, milk and vegetables, which are strongproducts of Vietnam.
Each year, the market imports about 80 percent of its foodand foodstuff consumption needs, worth about 40 billion USD. The figure islikely to reach about 70 billion USD per year by 2035. Meanwhile, the import tax rate inthe market is relatively low at 0-5 percent, he added.
HCM City’s export revenue generated from the Middle Eastmarket has risen strongly. In 2021, the city earned 230 million USD from exportinggoods to the UAE, and 130 million USD from Iraq, Tuan said.
However, he said that local firms have faced a number ofdifficulties in the market, including a lack of information and barriers inlogistics and international payment. He called for support from Vietnamese representative agencies in the Middle East as well as trade promotion agencies athome.
Nguyen Thi Ngoc Hang, Marketing Director of the HalalCertification Agency Vietnam, said that the Muslim markets, including the MiddleEast countries, are a promising land for Vietnamese exporters.
She advised businesses to carefully study themarkets and create confidence among local consumers in their products./.
VNA
