Experts call for risk management to boost Vietnam-Africa trade

Bilateral trade between Vietnam and African economies has made significant growth in the past decade, however, there is still room for improvement.
experts call for risk management to boost vietnam africa trade

Two-way trade jumped 250 percent to 6.6 billion USD in 2018 from 2.52 billion USD in 2010, Deputy Minister of Foreign Affairs Dang Minh Khoi told a seminar on December 6.

During that time, Africa became a favourite destination for Vietnamese companies that operate in telecommunications, agriculture and education such as the military-backed telecom group Viettel, he said.

The two sides had also made improvements in political, social and diplomatic relations. Those facts prove the potential of bilateral co-operation between Vietnam and African nations is huge, Khoi added.

Secretary General of the International Organisation of La Francophonie (IOF) Louise Mushikiwabo said Africa was a large market with a population of 1.2 billion. The continent benefited from a young labour force, better connection with the international community and it was rising to become the new centre of the world.

It was important for Vietnamese and African businesses to be informed of opportunities and information by regional governments, she said, adding the logistic and transporting system between the two sides must be improved to meet the travel demand.

However, there are challenges that have put Vietnamese companies at risk when they come to Africa and set up business relations, experts said.

Issues in the bilateral trade included financial payment and trade fraud that are damaging Vietnamese companies’ confidence when they decide to do business in Africa, they said.

But experts at the seminar suggested companies on both sides should seek support from arbitration units to resolve any problems and disputes with trade relations.

In addition, business relations should be built through government agencies that help organise connection events for Vietnamese and African companies to exchange ideas, they said.

Phan Thi Thanh Nhan, Direct of Trade Finance Centre at the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), said one of the issues between Vietnamese and African companies was reliability.

Payment methods played an important role in global trade but most African banks had not met international standards, she said, adding it has hinder trade as Vietnamese firms found it difficult to make payment through local banks.

She warned Vietnamese firms to not advance payment to African sellers or accept late payment for local buyers. “Letter of credit is a creditable method if the issuer of the letter is highly reputable.”

Nguyen Phuc Nam, Deputy Director of the Asia-Africa Market Department at the Ministry of Industry and Trade, said issues between Vietnamese and African businesses came from the differences in culture, language, legal system, travel distance and limited co-operation in the banking sector.

The majority of African economies were still underdeveloped with poor of transportation, infrastructure, telecommunication and logistics, he said.

In addition, Vietnamese embassies and trade offices in Africa cannot evaluate all local businesses due to lack of resources, he said.

There are only eight Vietnamese embassies and five trade offices to cover 55 African countries, Nam said, adding it was difficult for Vietnamese companies to cross-check partners’ information if they were suspicious.

But it was still a must that Vietnamese companies ask for consultancy of Vietnamese embassies and trade offices in Africa about the information of local clients and partners, he said.

They should look for partners though trade promotion activities organised by the Ministry of Industry and Trade and African government agencies to make sure partners are reputable and creditable, making co-operation less risky.

Source: VOV

Related News

Maintain fiscal policy to "open the way" for the economy in 2024

Maintain fiscal policy to "open the way" for the economy in 2024

VCN - According to Dr. Can Van Luc, member of the National Financial and Monetary Policy Advisory Council (as picture), to maintain high and sustainable growth momentum in the next 1-2 years, the Government still needs to continue to prioritize fiscal policy tools with the support of monetary policy to promote domestic aggregate demand. In particular, to further accelerate economic recovery, it is necessary to apply support policies similar to the Covid-19 epidemic and "stimulate" consumption and private investment.
Customs collects nearly VND35,000 billion within one month

Customs collects nearly VND35,000 billion within one month

VCN - In April, the Customs revenue saw a significant increase compared to the previous month.
Customs revenue rises thanks to 3 imported groups

Customs revenue rises thanks to 3 imported groups

VCN - The economy in the first four months of 2024 is showing positive signs when import-export activities recover strongly, pushing up the trade turnover. In particular, both exports and imports recorded strong growth in many groups, contributing significantly to the revenue results of the Customs sector.
Risk prevention solutions for export processing and production enterprises

Risk prevention solutions for export processing and production enterprises

VCN - Identifying common errors to comply with regulations, prevent risks, and limit mistakes arising in preparing final settlement reports is an issue which many export processing and production enterprises concern.

Latest News

Imports and exports achieve US$239 billion by the end of April

Imports and exports achieve US$239 billion by the end of April

VCN - The import-export turnover in April witnessed a slight decrease compared to the previous month but it is still high with more than US$60 billion.
Spending more than US$31 billion for importing computers and electronic products in 4 months

Spending more than US$31 billion for importing computers and electronic products in 4 months

VCN - Computers, electronic products, and components are the group of imported commodities with the largest scale in the country.
Multi-dimensional picture of textile and garment enterprises

Multi-dimensional picture of textile and garment enterprises

VCN - Despite a quite positive start in the first quarter of 2024, the textile and garment industry has still faced many challenges from new requirements of importing countries, requiring enterprises to have proactive solutions to respond.
Promoting Vietnamese pharmaceutical industry

Promoting Vietnamese pharmaceutical industry

Vietnamese pharmaceutical market grew from $2.7 billion in 2015 to $7 billion in 2022 and is forecast to reach more than $10 billion by 2026.

More News

HCM City to host iTech Expo 2024 in July

HCM City to host iTech Expo 2024 in July

The first-ever international technology exposition (iTech Expo) 2024 will take place in Ho Chi Minh from July 10-12, featuring 500 booths from leading technology countries and territories around the world, heard a press conference on May 20.
Pangasius exports are forecasted to bounce back at the end of the year

Pangasius exports are forecasted to bounce back at the end of the year

VCN - It is forecasted that pangasius exports is forecasted to be better from the third and fourth quarters of 2024, leading to the uptrend being adjusted to increase by at least about 10% compared to the current price.
Exports to the US reaches over US$6 billion

Exports to the US reaches over US$6 billion

VCN - The US continues to be Vietnam's largest export market and achieves positive growth.
Market diversification key for enterprises to expand exports

Market diversification key for enterprises to expand exports

Vietnamese enterprises need to meet quality requirements and rules of origin, increase value-added content, and diversify markets, as production and business activities are forecast to face many challenges due to the unpredictable global economy and climate change.
Businesses advised to focus on brand protection in online export

Businesses advised to focus on brand protection in online export

As more and more Vietnamese businesses are using international e-commerce platforms such as Amazon, eBay and Alibaba to expand market, experts have advised domestic firms to pay greater attention to the protection of trademark in the cyberspace, especially during online exporting activities.
Find solutions to attract goods through the first specialized container port in Vietnam

Find solutions to attract goods through the first specialized container port in Vietnam

VCN- As the first specialized container port in Vietnam with 25 years of operation, the volume of goods passing through the international container port of Vietnam (VICT) is still very modest. Mr. Truong Nguyen Linh, Deputy General Director of VICT port, has shared solutions to attract cargo through this port.
Textiles and footwear in a greening spiral

Textiles and footwear in a greening spiral

VCN - More and more regulations on sustainable development are issued in major markets such as the US and EU, imposing pressure on Vietnamese textile and garment enterprises to be faster on the green roadmap.
Agricultural, forestry and fishery product exports continue to "scoring points"

Agricultural, forestry and fishery product exports continue to "scoring points"

VCN - In the first four months of 2024, the country's total export turnover of agricultural, forestry and fishery products is estimated to reach more than US$19 billion, an increase of 23.7 percent compared to the same period last year. Most key agricultural and forestry export products increased higher than the same period last year as well as the export value to all markets increased.
Build and protect the rice value chain against market fluctuations

Build and protect the rice value chain against market fluctuations

VCN - Due to recent risks and challenges,business performancehave been badly hurt andmany chain links have been under threats ..., the rice industry needs to enhance the role of ministries, branches, localities, and farmers and businesses in building and protecting the rice value chain against market fluctuations.
Read More

Your care

Latest Most read
Imports and exports achieve US$239 billion by the end of April

Imports and exports achieve US$239 billion by the end of April

The import-export turnover in April witnessed a slight decrease compared to the previous month but it is still high with more than US$60 billion.
Spending more than US$31 billion for importing computers and electronic products in 4 months

Spending more than US$31 billion for importing computers and electronic products in 4 months

Computers, electronic products, and components are the group of imported commodities with the largest scale in the country.
Multi-dimensional picture of textile and garment enterprises

Multi-dimensional picture of textile and garment enterprises

VCN - The financial report of Thanh Cong Textile - Investment - Trading Joint Stock Company recorded revenue of more than VND 934 billion in the first quarter 2024, an increase of 7% compared to the same period in 2023; Net profit reached over VND 62 bill
Promoting Vietnamese pharmaceutical industry

Promoting Vietnamese pharmaceutical industry

Vietnamese pharmaceutical market grew from $2.7 billion in 2015 to $7 billion in 2022 and is forecast to reach more than $10 billion by 2026.
HCM City to host iTech Expo 2024 in July

HCM City to host iTech Expo 2024 in July

The first-ever international technology exposition (iTech Expo) 2024 will take place in Ho Chi Minh from July 10-12, featuring 500 booths from leading technology countries and territories around the world, heard a press conference on May 20.
Mobile Version