[Vnbiz] DCCI report says UAE may be a key route for Vietnam trade

[Phan, Tai]

DCCI report says UAE may be a key route for Vietnam trade
BY JOSE FRANCO 

3 September 2007 



DUBAI - With its established trade routes with Europe and Africa, the UAE can play an important role to further trade between Vietnam and the two continents, according to a study done by Dubai Chamber of Commerce and Industry (DCCI).


Entitled "Potential Business Opportunities in Vietnam from the UAE Perspective", the 23-page report noted that the Southeast Asian country has strong foreign trade relations with Gulf countries but is weak in the European and African markets. 

"Given the UAE's established trade routes in these two large continents, the UAE can be an important transshipment port in the exchange of goods between Vietnam and Europe and Africa," the study said. 

It said that industrial sectors in the UAE and Vietnam have significant shares in their respective GDPs, with the services sector contributing 35.8 per cent in the former and 38.1 per cent in the latter. 

It also noted that the Vietnamese government has issued new rules and legislations offering attractive incentives for foreign investments. 

The study was released in the wake of an official visit to Vietnam, now the world's second-fastest growing economy after China, by Obaid Humaid Al Tayer, chairman of DCCI, and other delegates representing the UAE's various business sectors on September 4. 

"The visit aims to activate bilateral economic trade ties...and to discuss the potential investment opportunities available in both countries on the government and private levels," DCCI said in a statement. 

The report said Vietnam, which is now "vigorously pursuing industrialisation strategies", will need more fuel and industrial raw materials for its various projects.

It added that this requirement will indirectly increase the demand for refineries in Singapore, to meet the fuel demand of its Asian neighbour. "This is also a scenario that can be explored in the case of the Philippines, which is a major importer of rice from Vietnam and operates oil refineries," the report said. 

Noting that the UAE's robust metal and metal product industries, the report said the country may establish trade routes along these products, or take avail of Vietnam's large skilled labour force and invest in similar sectors there. 

It said the UAE may also explore Vietnam's agricultural sector in terms of trade or direct investment on food processing and manufacturing. Vietnam is a major supplier of rice, corn and other agricultural products to its Asian neighbours. 

DCCI said that Vietnam, which joined the World Trade Organisation (WTO) early this year, has an excellent opportunity to liberalise its economy and establish strong trade and investment relations with many countries, particularly the UAE. 

The UAE is Vietnam's 24th biggest export market from 2000 to 2005. Vietnam's export to the UAE during the period rose to Dh448.11 million ($122 million) from Dh88.15 million ($24 million). 

"Vietnam is considered an important source that meets the UAE's needs of agricultural products...while Dubai could be a vital stop port for the Vietnamese commodities exported to Europe and Africa," DCCI said.