When export shipments to traditional markets like the US, the EU and Japan seem to reach the status of saturation and face more technical and tariff barriers or dumping suits, Vietnam is seeking new destinations for its commodities, including the Middle East - African markets. The Middle East consists of 15 countries with a population of 300 million people.
The regional GDP growth reached 5.9 percent in 2008 and declined to 2 percent in 2009 due to adverse impacts of the global economic crisis. Biggest Middle East economies include Saudi Arabia, Iran, UEA and Turkey. All these economies have forged economic ties with Vietnam on many aspects such as oil and gas exploration in Danan (Iran) and Amara oil field (Iraq). Saudi Arabia needs 7 million guest workers and is ready to receive 400,000 to 700,000 workers from Vietnam. This nation is also working with Vietnam to build high-grade Raffles Resort in Da Nang city in the Southeast Asian nation.
This is also considered a potential market. As regards oil and gas, this market holds three-fourths of global reserves. It is also the centre of finance, capital, biotechnology and hi-tech. This region is also well-known for beautiful landscapes and historical sites related to three major world-known religions. From what is happening in this region, Vietnamese companies can export textiles, footwear, seafood, rice, tea, coffee, computers and electronic products among others to this market.
In addition to the Middle East, Africa also is a place for Vietnamese exporters. The GDP growth of this continent slumped to 2 percent in 2009 while inflation, excluding Zimbabwe, was 10.7 percent in 2008, up from 6.4 percent in 2007, due to higher prices of fuel and foods and currency revaluation. Remarkably, in 2007 and 2008, South Africa, Great Lakes (including Kenya, Tanzania and Uganda) and even Horn of Africa which have been known for year-through drought record GDP growth approximating those of China and India.
Last year, while the world was sinking deeper into recession, GDP of this continent still expanded 2 percent, equalling that in the Middle East and outpacing other nations except for China and India. In 2010 and 2011, Africa is estimate to grow by 4.8 percent - the highest growth rate outside Asia, and even higher than such countries as Brazil, Russia, Mexico, and Eastern Europe, according to the International Monetary Fund (IMF). In fact, on the basis of per capita income, Africans are richer than Indians.
These figures signal good outlook of exports to this market. Africa is still incurring trade deficit, mainly due to consumer goods, machines, pharmaceuticals, technology and agricultural products which are the strengths of Vietnam. In the coming time, with the direction of the Government and the support of by the Vietnam Trade Promotion Agency, Vietnamese exporters will soon occupy these two markets.
Van Ta
Vietnamese
