Dubai - Potential Market for Vietnamese Exporters

At present, among Vietnam’s export markets, Dubai is not popular with Vietnamese enterprises. Vietnam mainly focuses on traditional markets such as Russia, Japan, America, and several European countries. However some experts warn that if the country only concentrates on certain partners, they will face a higher risk. An official of the Department of Trade Promotion made a speech in Da Nang. He said that instead of taking the risk, why don’t Vietnamese enterprises expand into markets such as Dubai?

 

At the meeting of enterprises of Da Nang and the Central Region, vice director of the department of Africa, Western Asia and Southern Asia under the Trade Ministry noted that Dubai is an open market with low import tax, without barriers and complex demands. Dubai import goods not only for production and consumption, but also for export to nearly 200 nations and territories with a population of around 1.4 billion. He added although this is a transition market, Vietnamese enterprises must face fierce competition with other countries, for example China, Korea and Thailand.

 

The other advantage for export enterprises is that Dubai will hold trade fairs every three months. Moreover, the goods displayed in these fairs will not be taxed and enterprises have the chance to seek contracts and cooperation. Seafood and coffee exported to Dubai are duty free goods. Vietnamese enterprises should maximally take advantage of this chance, because these goods are their position of strength. The deal between Vietnam and Vietnam’s product introduction center in Dubai will be a chance for information exchange before enterprises enter the market.

 

Dubai is the second largest small emirate in the United Arab Emirates (UAE), has a convenient location in terms of geography, and has open export policies in combination with good trade relations with Vietnam. The country has seen good growth in recent years. Vietnam exported goods worth US$23 million to UAE in 2000 and estimates up to US$170 million of exports in 2007. The major exports of Vietnam are pepper, tobacco, textiles, garments and seafood, and its exports to Vietnam are machines, equipment, steel and fertilizer. Turnover between the two countries grows over 30 percent, and it is still not high in comparison with the potential and demand of each site.