Egypt – a gateway to lucrative African market
(VOV) - Egypt has emerged as a potential market for Vietnamese businesses to boost exports and penetrate other markets in Africa.
Despite political instability in Egypt, Vietnamese exports to this North African nation last year increased by 47 percent over 2010, reaching US$256 million. Between January-October 2012, its exports rose 23 percent year on year, hitting US$268 million.
Egyptian consumers prefer Vietnamese farm produce, seafood, fabrics, machinery, motorcycle components, footwear, mobile phones, air conditioners, garments, timber products, ceramics, and chemicals.
According to the Ministry of Industry and Trade, Vietnamese businesses will have more opportunities to penetrate this market in 2013 when the two countries will celebrate 50 years of diplomatic ties. Various trade promotion activities will be carried out during the celebrations.
Both countries will organise the fifth session of the Inter-government Committee in the first quarter to discuss measures to raise bilateral trade value to US$500 million in 2014.
At a recent online conference in Hanoi, experts pointed out difficulties Vietnamese and Egyptian businesses face in boosting their partnerships, including limited access to information and few market research trips.
Representatives from the Vietnamese Ministry of Industry and Trade, the Egyptian Ministry of Commerce and Industry, and the Federation of Egyptian Chambers of Commerce, suggested that the two countries’ business communities should increase visit exchanges, and take part in trade fairs and exhibitions to be held in each other’ markets.
* Vietnam-Egypt trade exchanges on the rise
* Exports to Africa increase sharply
* Penetrating African markets
They recommended Egyptian businesses invest in their strong areas of steel manufacturing, food processing, and construction.
Ayman El Abd, General Secretary of the Federation of Egyptian Chambers of Commerce, said his government defines private investment as a key factor in its development strategy, and this sector is expected to grow and flourish in the near future.
The Trade Office of the Vietnamese embassy in Egypt urged businesses to study their profiles and regulations carefully before signing contracts.
To undertake long-term operations, businesses were advised to guarantee the quality of exports, consider appropriate payment methods, and define agencies that are able to settle any possible disputes.