1-    Big opportunities for export to the United Arab Emirates (UAE)

The United Arab Emirates (UAE) holds a big export potential for Vietnamese businesses thanks to its strong purchasing power and financial capacity.

In its export promotion scheme for 2009, the Ministry of Industry and Trade sees the Middle East as a solution to difficulties caused by the global economic crisis. The UAE has demand for diverse goods at different prices. In addition, there is no tariff barrier, except for 5% customs duty, and no requirements for brand protection or registration; so businesses can export their products with ease.

The country imports a large quantity of tropical fruit, apparel, footwear and vegetables, products that Vietnam has great advantages. It was reported last year that Vietnam’s exports to this market reached US$500 million, doubling the 2007 figure. However, this revenue accounts for a tiny share of the UAE’s foreign trade turnover of around US$350 billion a year.

2- Promoting Vietnamese tourism in the UK

The Vietnam National Administration of Tourism (VAT) has announced that this year it plans to promote Vietnam’s image to international friends on double-decker buses in major UK cities such as London, Manchester and Liverpool.

The plan runs parallel with the VAT’s strategy to promote Vietnamese tourism through foreign mass media like the BBC, and the UNESCO’s World Heritage Magazine. Double-decker buses will be effective in helping the VAT save costs in introducing Vietnam’s image to foreign countries.

Vietnam welcomed 370,000 foreigners in January, down 11.9 percent from a year ago, according to the General Statistics Office.

Numbers of visitors from the Republic of Korea and China fell significantly, but those from France rose 51.1 percent, Malaysia, 23.3 percent and Singapore, 26.6 percent.

(website CPV/VOVNEWS Feb 08, 2009)

(The Saigon Times, No7 – 09(906) Feb, 2009)

3 – Vietnam calls for trade promotion to regain economic growth

The Government has called on key export sectors to strengthen promotional activities to enter new markets and expand exports

Exports play a major role in the country’s economic growth but are also an early casualty in case of recession. In this scenario, the Government has been launching several measures over the last few months, including export duty and interest rate cuts and providing interest rate subsidies to help exporters cut costs.

With demand in traditional markets like the US, the EU and Japan falling because of the recession, exporters have been looking at new markets like the Middle East, Africa, Latin America and Australia that are relatively unscathed by the economic crisis.

But to get a foothold there, they need to organize exhibitions, trade fairs and market surveys.

According to Mr. Le Quoc An, chairman of the Vietnam Garment and Textile Association, exporters and business associations fully understand the importance of trade promotion but lack the fund for it.

The Government had earmarked VND63 billion (US$3.6 million) for trade promotion in the first quarter, while the garment and textile sector alone required at least VND50 billion.

The Vietnam Fruit and Vegetable, and Leather and Shoe associations have asked the Trade Promotion Department for funding to support promotional programmes.

The Ministry of Industry and Trade has set an export target of $71 billion this year, a 13 percent year-on-year increase. But Deputy Minister Le Duong Quang admitted the target would be difficult to achieve because of the fallout of the economic crisis.

According to the General Statistics Office (GSO), exports were worth %3.8 billion in January, 18.6 percent less then the previous month and 24.2 percent down from the same period last year. The fall was caused by a drop in global prices of goods. In January the price of 23 out of 25 exported items fell sharply. Crude oil was down 57.7 percent from a year ago, rubber 43 percent, and peper 20 percent.

(Vietnam News Feb 9, 2009)