VN eyes Bangladesh export potential

News 09:03 13/09/2014 499
Vietnamese businesses need to conduct research into the Bangladesh market to boost export value, the Africa, West Asia, and South Asia Market Department under the Ministry of Industry and Trade has said.

Further investment in the country is needed as well, the department said, to take advantage of local production that could increase Vietnamese exports to other countries.

With a population of 162 million, Bangladesh is a large market for consumer products.

As an estimated 89.5 per cent of Bangladeshi citizens follow Islam, Vietnamese firms need to understand consumers' tastes and should familiarise themselves with the unique demands of these consumers.

Since establishing diplomatic ties in 1973, the two countries have signed co-operation agreements in various sectors. Although bilateral trade remains modest, it has increased in recent years, from US$65 million in 2008 to $390 million in 2012, with Viet Nam enjoying a trade surplus.

According to statistics from the General Department of Viet Nam Customs, Vietnamese exports to Bangladesh in the 2008-12 period went up by 7.5 times, from $47 million in 2008 to $354 million in 2012.

The figure topped $446 million last year, a year-on-year increase of over 42.3 per cent.

Viet Nam's key export items to Bangladesh include clinker, fibre, garments, machinery, equipment, spare parts, mobilephones, leather and footwear.

Viet Nam imports garment and textile materials, pharmaceutical products, and seafood from Bangladesh.

Currently, Bangladesh is encouraging more foreign investment by keeping labour costs at the region's cheapest level and by maintaining low land rental rates. It is also introducing a range of investment incentives, the department said.

Vietnamese businesses, especially those in the footwear and garment and textile sectors, have faced tough competition from their Bangladeshi counterparts.

With the EU offering preferential policies to exports made in Bangladesh, Vietnamese garment and textile firms can take advantage of investment and production opportunities in Bangladesh and then export goods to the EU.

(Source VNS) 

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