Vietnam Embassy to turn bilateral interest into solid economic results

TURKEY is the country with the highest investment in Vietnam of all Middle East countries, Dr. Do Son Hai, Ambassador of the Socialist Republic of Vietnam to Turkey told TR MONITOR during his trip to Istanbul aimed at increasing bilateral trade and economic relations. Turkish companies are paying more and more attention to the Vietnamese market, especially after the country brought COVID -19 under control, the ambassador added. Vietnam also offers opportunities for Turkey to enter the 680 million ASEAN market, according to Do. Diplomatic ties between the two countries were established in 1978. Since then, bilateral relations have rapidly developed both in terms of volume and depth in various fields, including trade and investment. The trading turnover between two countries increased by 84.6% in the 2010-2021 period. The bilateral trade volume reached over USD 3bn in 2017, then decreased to USD 1.59m in 2021 due to various difficulties, including the impact of the COVID -19 pandemic. Despite this fall, Vietnam became the second biggest trading partner for Turkey among the Association of Southeast Asian Nations (ASEAN) countries, after Malaysia.

Overall, the value of exports from Turkey to Vietnam has increased almost by four times since 2010, said Do. Main products include computers and electronic products, machinery and parts, and chemical goods. Exports of goods from Vietnam to Turkey was up by an estimated 60% in the same period, including telephone, computer parts and textile products.

USD 864,5M FDI FROM TURKEY

There is currently no Vietnamese company that has operations in Turkey, according to official data. However, ambassador Do believe that the close relationship between the two countries will boost investment and trade in the near future.

Turkey differs from Vietnam in terms of FDI. Turkish companies have invested in 29 projects in Vietnam with USD 864,5m in registered capital as of May 2022. This figure increased by approximately 10% compared to the end of 2021 with an investment worth USD 73,3m, Do added.

Dr. Do Son Hai, Ambassador from Vietnam to Turkey, and his team held meetings with the Turkey–Vietnam Business Council of the Foreign Economic Relations Board of Turkey (DEIK) and several businesses in during their mission in Istanbul two weeks ago. “[Entering the Vietnamese marker] is an opportunity that Turkish businesses have recognized and want to grasp,” he said. DEIK also revealed their plan to organize a business trip to Vietnam for the third quarter of 2022 to meet counterparts and set the ground for other B2B visits to come in the future, he added.

POTENTIAL IN AGRICULTURE

Businesses from the two countries have the opportunity to cooperate

in a range of sectors, according to ambassador Do, especially in agriculture, forestry and fisheries, textile, chemicals, high technology, energy, infrastructure, and the defense industry.

He believes that enterprises from two countries could work together and realize many opportunities. “Given its rapid economic growth, Vietnam has a huge demand for upgrading its infrastructure, such as roads, railways, and energy infrastructure. So, Turkish companies could participate in projects in Vietnam. In agriculture, Vietnam could export tropical fruits and coffee while Turkiye could export hazelnut products and pistachios,” he noted.

For their part, the Vietnam Embassy will focus on boosting market promotion in the two countries, promoting mutual understanding between people and businesses and promoting connection at the local level between the two countries. They also plan to support business matchmaking via specific projects and activities.

“I would strongly promote the images and markets of Vietnam and Turkey using the mass media in both countries,” said the Vietnamese Ambassador to Turkey. The Embassy will promote connectivity between Vietnam and Turkey, especially towards establishing sister cities in the two countries, he added.

45TH ANNIVERSARY OF DIPLOMATIC RELATIONS

Currently, the Embassy is in close contact with DEIK and several business associations in both Turkey and Vietnam. Do hopes they will increase their contacts with related organizations and agencies in order to better support business communities in the two countries.

The Embassy will also focus on working with specific ministries, Turkish provincial administrations, and businesses in the second half of 2022. “We will closely coordinate with the Turkish Ministry of Foreign Affairs and other relevant authorities to prepare for the 45th anniversary of the establishment of Vietnam-Turkey diplomatic relations.

There is interest in Vietnam for Turkish market, according to Do. “Before my post in Turkey started in April, I participated in numerous meetings with Vietnamese companies who are eager to know more about the Turkish market, who are seeking support for connecting with Turkish partners, and who are looking for opportunities to export and import products,” he stressed.

There are some problems that currently hinder the cooperation process, he said. One of thee is the lack of linkages in the banking systems of the two countries. “This poses great risks in transferring money, trading goods, and making investments. In addition, it is necessary to have a channel to provide up-to-date information about the Turkish market to Vietnamese companies,” ambassador Do underlined.