Viet Nam calls for FTA

 Viet Nam calls for FTA

• ‘Appointing Lanka’s first trade official to ‘Nam’-Rishad
• ‘Bilateral trade should not be just rice & tea!’-(HE) Kieu Thu
•  YoY Bilateral trade surges by 88%
• “Time to explore joint apparel synergies too’-(HE) Kieu Thu

Stepping up its trade cooperation with Sri Lanka to new levels, Viet Nam has said that it is vying for a ground-breaking FTA with Sri Lanka on 27 November-and on its part, Sri Lanka has promptly appointed its first ever trade officer to Vietnam. Also, world’s fifth largest apparel exporter ready to partner with Sri Lanka’s apparel industry. “There is huge unrealised trade potential between both countries that we need to explore. Trade need not be mostly exchanging of rice and tea between both countries. Therefore, while in Colombo, I will take up the task of promoting FTA with Sri Lanka!” said an enthusiastic (HE) Madame Phan Kieu Thu (Viet Nam’s new Ambassadress to Sri Lanka) on 27 November in Colombo.

(HE) Ambassadress Thu was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 27 November during her maiden courtesy call on Minister Bathiudeen at the EDB. Joining Minister Bathiudeen in the discussions were his officials from the Department of Commerce and Bandula Egodage (Chairman & CEO-EDB).

“Former Viet Nam Ambassador in Colombo (HE) Ton Sinh Thanh has done a good job in Colombo promoting bilateral trade till the last minute of his departure. He was also instrumental in promoting bilateral investments” said Minister Bathiudeen welcoming (HE) Ambassadress Thu, and added: “As per the export vision of HE the President Mahinda Rajapaksa, we are targeting $ 20 Bn exports by 2020 and free trade agreements with our partners could help us in this effort. The Department of Commerce under my Ministry has increased its efforts to boost bilateral trade. I am pleased of the establishment of our successful first ever Lanka Vietnam official trade mechanism in August. This Joint Trade Sub Committee has enhanced the existing bilateral trade and economic relations to new heights. I am pleased to inform Your Excellency of the appointment of the first Lankan Trade (Promotion) Officer to Viet Nam by my Department of Commerce, and this officer is expected to start in January 2015. Next year we are also planning to send a strong Lankan business B2B delegation to Viet Nam, based on Vietnamese invitation to do so during my August visit.”

Responding to Minister Bathiudeen, (HE) Ambassadress Thu said: “There is huge unrealised trade potential between both countries that we need to explore. Trade need not be only on exchange of rice and tea between both countries. While in Colombo, I will take up the task of promoting FTA with Sri Lanka! We are working on receiving the Lankan B2B delegation to Viet Nam next year. Expansion of your exports to Viet Nam will give a wider choice of Lankan goods to our consumers and an FTA is a great instrument.”

At present Vietnam ranks as the 40th export destination and the 23rd supplier of Sri Lanka, accounting for 0.43% of our total exports and 1.06% of our total imports respectively.  Total trade between both countries which stood at $ 119.5 Mn in 2012 increased to $ 224.4 Mn in 2013 registering a remarkable growth of 88%. Since 2011, Petrovietnam Oil Corporation (PVOil) has supplied to its Sri Lankan partner with petroleum products. In the field of industry, the two countries have concluded a number of important documents, creating a legal framework for further enhanced cooperation activities. Those include the MOU on Machinery Manufacturing Cooperation between the Ministry of Industry and Trade of Viet Nam and the Ministry of Industry and Commerce of Sri Lanka, the MOU on Oil and Gas Cooperation between the Ministry of Industry and Trade of Viet Nam and Ministry of Industry and Prime Minister’s Secretary Office of Sri Lanka.

Responding to (HE) Ambassadress Thu, Minister Bathiudeen said: “I too agree an FTA would bring our bilateral trade to new levels. During my tour to Viet Nam in August, I was officially informed that the nine strong FTAs Viet Nam has, is the reason for Viet Nam’s great export success seen today. Currently we have FTAs with India and Pakistan, and are in discussions for FTA with China and Bangladesh. This August’s  establishment of Joint Trade Sub Committee in Hanoi is the starting point for our FTA. We look forward to your help to complete the FTA.”

(HE) Ambassadress Thu also said: “Viet Nam has a huge apparel production sector and last year we exported around $20 Bn apparels. Since Sri Lankan apparels too are renowned and world class, I can see there are lots of joint venture and synergy potentials. Therefore I also suggest that we look in to joint apparel cooperation efforts.”

Minister Bathiudeen thereafter instructed his officials to look into apparel cooperation efforts with Viet Nam.

Sri Lanka apparel export revenues (this January-September) totalled $ 4.8 Bn and the industry plans for $8.5Bn exports revenues by 2020. Viet Nam is the fifth largest apparel exporter in the world, exporting close to $20 Bn apparels in 2013.