Great potential for Vietnamese goods to enter Africa, Middle East

An online workshop discussing measures to further promote the export of potential products to Africa and the Middle East was held by the Ministry of Industry and Trade (MoIT)’s Vietnam Trade Promotion Agency on November 23.

The Ministry of Industry and Trade's Vietnam Trade Promotion Agency conducted an online workshop on November 23 to discuss measures to boost the export of potential products to Africa and the Middle East. According to Nguyen Minh Phuong, head of the West Asia–Africa Office under the Ministry's Department of Asia–Africa Markets, Middle Eastern countries import about 80% of their food and foodstuffs, amounting to approximately $40 billion annually. Vietnamese goods can find a significant market in these regions as their requirements for quality and product design are not overly strict.

Truong Xuan Trung, responsible for the Vietnam Trade Office in the UAE, highlighted that all Vietnamese goods could be exported to this market if they meet the necessary standards. Additionally, the UAE serves as a regional and global transit center, offering potential for the re-export of goods. Vietnam is the largest ASEAN exporter of agricultural products to the UAE, with a notable increase in exports of cashew nuts, rice, fruits and vegetables, and tea in the first 10 months of 2023. Agricultural products exported to the UAE are not currently subject to taxes, providing a competitive advantage for Vietnamese goods in this market.

The UAE's membership in the Gulf Cooperation Council (GCC) further enables the re-export of Vietnamese goods to other GCC countries without double taxation. The Vietnam Trade Office in Egypt emphasized the competition faced by Vietnamese agricultural products in Egypt, including tea, pepper, cashew nuts, coconut rice, coffee, and seafood. The potential of Nigeria, the most populous country in Africa, as a market for Vietnamese goods was also discussed, with the country's consumption growth predicted to reach $603 billion in 2030. However, businesses were advised to exercise caution in trade transactions with partners in Africa and the Middle East, particularly focusing on ensuring secure payment methods like letters of credit (L/C) to mitigate payment risks.