ASEAN to enhance business with Lanka

ASEAN is ready for a wider engagement with Sri Lanka's business sector and that it is time for a Lankan business council on its soil, the Secretary General of the Vietnam Chamber of Commerce and Industry (VCCI), Pham Thi Thu Hangon told the Sri Lankan business delegation at the headquarters of VCCI in Hanoi last week.

He said that the setting up of a Vietnam-Sri Lanka Business Council in Vietnam is a good move.

"We welcome the appointment of a Lankan trade official in Vietnam," Hangon said.

The business delegation was led by Industry and Commerce Minister Rishad Bathiudeen and included DG, Department of Commerce, R.D.S. Kumararatne, Chairman and CEO, EDB, Bandula Egodage and Sri Lanka's Ambassador to Vietnam, Ivan Amarasinghe.

VCCI, the sole national representative of all Vietnamese businesses, industries and entrepreneurs has 300 associations as members with 110,000 direct and indirect members, and is the powerful voice of all businesses and industries of the rapidly developing ($142 billion GDP), one-party Communist State.

In 1997, the Department of Foreign Affairs and Trade of Australia, realising the significance of Vietnam, Cambodia, Burma, Laos and Vietnam grouping, began calling them the 'New ASEAN'.

Excepting China, Vietnam is the largest economy and the market of the Greater Mekong Sub Region.

Minister Bathiudeen said, "We are experiencing strong international trade and GDP growth is expected to exceed 7.5% this year. Vietnam and Sri Lanka have agreed to increase bilateral trade to $ 1 billion and we have to work towards this."

"The setting up a Joint Trade Sub Committee (JTSC) between the two countries is partly a result of the commitment shown by the Government of Vietnam," he said.

"We look forward to VCCI's assistance to sell more Lankan products in the Vietnamese market. An increase in trade between both countries has been observed despite the absence of a formal mechanism," the Minister said.

"There is much potential for bilateral trade and for Lankan manufacturers here," said Secretary General Thu Hang.

"Many opportunities are available for apparel manufacturers in Vietnam, given that apparel is our largest foreign exchange earner and last year our apparel exports stood at $ 20 billion," he said.

"The proposed Trans-Pacific Partnership (TPP) agreement which includes Vietnam and some top global trade economies will open opportunities for Vietnamese exporters and for Lankan businesses. There will indirect benefits through the TPP if they invest here," Thu Hang said.

"This Chamber is the bridge between Vietnam businesses and the government of Vietnam and the international business community. We welcome Sri Lankan businesses which wish to promote business in Vietnam. We also welcome Lankan businessmen for B2B meetings," he said.

"The VCCI Chamber will take steps to set up a Vietnam-Sri Lanka Business Council in Vietnam. We have already set up such Councils with many of our trading partners such as Taiwan," the Secretary General said.

"The appointment of a Lankan trade official to Vietnam will help bilateral trade. Our international department could regularly liaise with the official and even invite him to our biz sector meetings," he said.

"We will also take steps to integrate Sri Lanka's trade and export profile to our Country Profile Database, so that Vietnamese businesses will have a ready reference about your country, your annual national and international trade fairs and expos so that they can prepare in advance," Thu Hang said.

Vietnam continues to integrate more deeply into the regional and global economy. Vietnam is an active member of ASEAN, APEC, ASEM, WTO. In the framework of ASEAN, Vietnam is party to ASEAN-China FTA, ASEAN-India FTA, ASEAN-Korea FTA, ASEAN-Australia-New Zealand FTA.

Vietnam is now negotiating FTAs with the EU; the Russia, Belarus and Kazakhstan Customs Union; EFTA; South Korea and the Trans Pacific Partnership Agreement (TPP).

As regards foreign trade, Vietnam's export value reached US $ 132.2 billion in 2013 (an increase of 15.4% compared to 2012) and US $ 83.5 billion in the first seven months of 2014 (an increase of more than 14% compared to the corresponding period in 2013).

Vietnam is among the world's largest exporters of coffee, pepper, cashew nuts, rice and natural rubber.

At present Vietnam ranks as the 40th export destination and the 23rd supplier, accounting for 0.43% of our exports and 1.06% of our imports. Trade between both countries which stood at US $ 119.5 million in 2012 increased to US $ 224.4 million in 2013 registering a remarkable growth of 88%.