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Source: www.asiaecon.org |

VIETNAM STRENGTHENS BUSINESS TIES WITH UNITED ARAB EMIRATES


Earlier this week, trade agreements between Vietnam and the United Arab Emirates (UAE) were signed to boost and protect investment and workforce co-operation. During a recent visit by Vietnamese Prime Minister Nguyen Tan Dung to the UAE to meet political leaders, both parties unanimously agreed on various measures to boost and expand investment-finance, trade, energy, labor, and agriculture between the two countries. In addition, documents on investment encouragement and protection, an accord on double-taxation avoidance, an establishment of Inter-government committee, and deals on co-operation between the two Chamber of Commerce and Industry were signed.



Earlier this week, trade agreements between Vietnam and the United Arab Emirates (UAE) were signed to boost and protect investment and workforce co-operation. During a recent visit by Vietnamese Prime Minister Nguyen Tan Dung to the UAE to meet political leaders, both parties unanimously agreed on various measures to boost and expand investment-finance, trade, energy, labor, and agriculture between the two countries. In addition, documents on investment encouragement and protection, an accord on double-taxation avoidance, an establishment of Inter-government committee, and deals on co-operation between the two Chamber of Commerce and Industry were signed.

Dung expects two-way trade between the two countries to strengthen, as net exports soared from US$67 million in 2002 to US$550 million in 2008. Despite the UAE currently being the 25th largest trade partner for Vietnam, the government aims to bring it up to 10th.

Talks hinted at the future prospect of co-operation between the two countries. By utilizing each other’s comparative advantages, Vietnam could meet demands by importing crude oil, oil products, chemicals, and fertilizer from the UAE. The UAE will greatly benefit from Vietnam’s farm produce and food as the UAE has been actively pursuing sources of food staples after the global food shortage crisis in 2008. 

In reference to the stronger relationship, Dao Viet Trung, the Deputy Foreign Minister for Vietnam said, “It is believed that thanks to agreements reached during this visit and efforts made by both sides, bilateral co-operation in economy, trade and investment will be promoted, thus bringing about practical benefits and helping the two countries overcome negative impacts of the world economic crises, contributing to the two countries’ stable development and prosperity”.

Prime Minister Dung focused on the possible impact on Vietnam’s foreign direct investments. He said, “Vietnam is keen to attract UAE investors to participate in high-tech industries, the production of new materials and the agriculture and forestry, infrastructure, education, and training”. “Foreign investors could set up industrial zones in Vietnam and benefit from rents and labor costs that were much lower than in Malaysian and Chinese cities,” he spoke in regards to the benefits of investing in Vietnam. In addition, Vietnam has a young and qualified workforce, as well as the opportunity to access a market of 85 million consumers.

Despite the current global economic downturn, Vietnam was able to maintain steady GDP growth. For the past ten years, Vietnam has grown at rate of 7 to 8, and maintaining a growth rate of 6.23% in 2008. Last year, exports jumped 30% with foreign direct investment hitting $64 billion dollars. Macro-economic stability was sustained by generating 1.5 million jobs.

UAE on the other hand may need help bolstering up their GDP growth, as projected economic growth is 5 % (for 2009?). As banks curtail lending, jobs are cut, and consumer demand is hampered, the need for economic boosts is a primary concern for UAE.

Nguyen Chi Dung, Vietnam’s Deputy Minister of Planning and Investment, gave a presentation about investment opportunities in Vietnam. The list of major projects requiring foreign investment includes a number of highway, freeway, and railway projects costing from a range of $960m to $1.6bn. Oil and gas ventures are also seeking investments for $5bn and $6bn for refineries around Vietnam.

A list prepared by the Vietnamese Government of 161 projects requiring overseas investment includes opportunities in the infrastructure, tourism, hospitality, resorts, telecommunications, agriculture, forestry and fishery, oil and gas, along with other important sectors.


Source: AsiaEcon.org
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Source: www.asiaecon.org |


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