Vietnamese entrepreneurs have approached Pakistani exporters and invited them to explore $5 billion Vietnamese textile market. A member of Vietnam trade promotion delegation, which is on a short visit to Pakistan, told Business Recorder that Pakistan is currently exporting nearly $9 billion of cotton, other made-up textile articles.
Articles of apparel and clothing accessories, knitted or crocheted, articles of apparel and clothing accessories, not knitted or crocheted. While, Vietnam is importing about $5 billion of the same products annually from other countries as well.
"Pakistan has also opportunity to improve exports in pharmaceutical products to Vietnam, which currently stands at $100 million while Vietnam is importing $400 million of the same from other countries as well," the delegate said.
A senior member of the delegation said that Pakistan-Vietnam trade volume from January to December 2005 was amounted to only $64 million. Vietnam exports to Pakistan during the said period were $31.7 million and imports were $32.42 million.
From January to June 2006, the two countries' trade turnover is $45 million, an increase of nearly 50 percent compared to the same period last year. The delegation, which is headed by Do Nhu Dinh, Vice Minister of Trade, regretted that despite diplomatic relation established in November 8, 1972 the two countries registered only 0.001 percent share of their bilateral trade.
In 2005, Pakistan's total foreign trade was $41 billion, of which export was $16 billion and import was $25 billion. While, Vietnam's foreign trade in 2005 was $69 billion out of which export was $32 billion and import was $37 billion.
The figures show Pakistan's export to Vietnam accounted for only 0.002 percent of Pakistan's total export and 0.0009 percent of Vietnam's total import. Pakistan's import from Vietnam was only 0.001 percent of Pakistan's total import and 0.001 percent of Vietnam's total export.
Pakistan and Vietnam have vast potential to explore trade opportunities and in this regard the governments of both the countries should encourage and provide facilitation to the business community. The efforts would bring up trade between Pakistan and Vietnam to the billions level in a very short time, the delegate said.
The delegation acknowledged the quality of Pak surgical equipment and has shown interest in the sector, the delegate said. Pakistan has great potentials for exporting services to Vietnam such as teachers and professors, scientists and engineers, cultivators, chief executives, etc.
The delegate members said that they were considering black pepper and tea exports to Pakistan because these two products were in great demand in Pakistan. They said the policy of openness and industrialisation has opened up a new opportunities for Vietnam to make full use of its inherent comparative advantages ie vast natural resources and abundant and low-cost workforce. From around $500 million before the introduction of the reform policy, the total export volume of Vietnam reached $26 billion in 2004 and $32.23 billion in 2005.
During 1991-95 period major exports of Vietnam were crude oil, fishery products, rice, textiles, coffee, forestry products, rubber, peanut and cashew nuts. By 2005, the composition of export has expanded to seafood, wooden products and electronic appliances.
The structure reflects the rise in processed and manufactured products and decline in unprocessed products, namely agricultural, fishery, forestry products and minerals. Vietnam import continues to expand in terms of revenue, which jumped from $11.71 billion in 1999 to $31.5 billion in 2004 and $36.8 billion in 2005.
The structure of Vietnam imports turned out a positive outcome: the ratio of machinery, equipment and accessories grew considerably; fuel and raw materials for local production demand and export-oriented manufacturing commodities kept a dominant rate ie over 60 percent of the gross import value; consumer goods.
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