A few years ago, trade ties between Vietnam and Iraq were interrupted by the war, however, the recently improved the security situation in Iraq has re-captured the attention of Vietnamese businesses that are keen to expand their market in the country.

A Middle East-based Radio Voice of Vietnam (VOV) correspondent interviewed the Vietnamese Trade Counselor to Egypt and Iraq, Dang Ngoc Quang.

VOV: Iraq is entering a period of reconstruction and stability. What is the demand for foreign goods?

Mr Quang: Iraq’s goods production remains weak as the country is unable to produce a wide range of products that can meet domestic demands. Therefore, it must import industrial and agricultural products, consumer goods, and food from other countries.

In reality, Iraq has recently restored the petrol production to 2.5 million barrels per day, the equivalent to the production level prior to the war. Because of the current soaring petrol prices, Iraq is financially strong enough to make payment for imported goods.

VOV: From your point of view, which highly competitive products can Vietnam export to the Iraqi market?

Mr Quang: Previously, Vietnam’s export turnover to Iraq reached US$600. Vietnamese dairy products dominated the Iraqi market and became familiar to many Iraqi consumers. In addition, Vietnam also exported other products such as rice, tea, garments and textiles, machinery, seafood and batteries.

I believe if Vietnamese businesses are really interested in the Iraqi market, such products will still be accepted by Iraqi consumers and win their confidence again. This will be a good advantage for Vietnamese products to secure their foothold in the Iraqi market.

VOV: How could Vietnamese businesses penetrate the Iraqi market?

Mr Quang: Domestic businesses should pay more attention to the following issues. First is payment policy. Iraq’s banking system is currently weak. Vietnamese businesses often use banks in Dubai when exporting to Iraq. Recently a Vietnamese representative office has opened in Jordan to help domestic businesses that want to use banks in Jordan to carry out transactions.

Regarding transportation, Iraq has only one port in Umm Qasr and it is a long journey to transport goods from the port to the capital Baghdad. Due to unstable security, the transport of goods remains risky. Therefore Vietnamese businesses should consider paying an insurance premium for their goods, even though the rate is rather high.

However, the Iraqi Government has created good conditions for exporters because the country needs imported goods so import taxes remain low and trade barriers are not complicated.

VOV: Many businesses are worried about security in Iraq. What do you think?

Mr Quang: A delegation from the Vietnam Oil and Gas Group which had previously been in Iraq, came back to conduct a market survey there. This demonstrated that the security situation in Iraq has improved. Hopefully other businesses will feel self-confident enough to follow the footsteps of that pioneer business which has penetrated the Iraqi market. It is always the first step that counts.

VOV: Thank you very much.