Speaking at a conference on trade promotion to Asian markets on November 5, Deputy Director of the ASEAN Division, Multilateral Trade Policy Department at the Ministry of Industry and Trade (MoIT) Quyen Anh Ngoc urged enterprises to coordinate with the Government and associations to study and develop appropriate production and business strategies to seize opportunities.
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An overview of the conference |
At the event, Ngoc provided Vietnamese exporters with information about free trade agreements within the ASEAN framework, particularly the Regional Comprehensive Economic Partnership (RCEP).
Some key export products of Vietnam will have their tariffs eliminated by countries immediately after the RCEP agreement comes into effect including seafood, meat, vegetables, fruit, agricultural products, some types of machinery and mechanical equipment; spare parts, machinery, computers, and electronic components, footwear, textile materials, textiles, and chemicals.
To tap the potential and advantages of Vietnamese exports, Ngoc highlighted the diversification of input material sources, preferential import tax in export markets, and more favourable investment and business environment.
Vietnamese Trade Counsellor in Indonesia Pham The Cuong said that Indonesia which is the world's fourth most populated country is a potential market, especially its working-age population accounts for 60% of the population. Indonesia’s high and stable economic growth pushes demand for consumption and imports. Notably, its middle class is growing rapidly, creating a driving force for consumption and economic growth. Moreover, Indonesia has an increasing demand for imported goods, particularly consumer goods.
Cuong noted that the Indonesian market is not as choosy as the U.S., the E.U. and Japan, while Vietnam and Indonesia have cultural similarities.
The close geographical distance also helps Vietnamese enterprises reduce transportation costs and increase the competitiveness of goods. In particular, Vietnamese goods are gradually asserting their position in Indonesia with increasing export turnover value; having a comparative advantage over many agricultural and aquatic product groups. In addition, direct flights between the two countries can help for businesses to penetrate deeper into this market.
However, Indonesia is a highly protected market and requires importers to have Halal certification and meet national standards (SNI), regulations on import ports to some groups of goods. Indonesia also regularly applies trade defense measures.
Therefore, to boost exports to Indonesian market, businesses need to proactively apply for Indonesian Halal certificates, and SNI certificates, Cuong said, adding that enterprises need to contact and closely coordinate with Vietnam's relevant agencies in case Indonesia initiates trade defense measures relating to their products.
Source: VNA