Lanka -Vietnam talks successful

Sri Lanka and rising ASEAN economy ink first trade minutes in Colombo

• ‘Talks successful’-Rishad & Vuong
• Private sectors of both sides to lead new thrust
• Products at play: Apparel, rubber
• ‘Let’s move for $1 Bn trade’-‘Nam’s Vuong

With a call to quadruple bilateral trade to $1 Bn, Sri Lanka and Vietnam inked the minutes of the successful first official joint trade meet on the eve of 26 March in Colombo. Interestingly, private sector players of the communist party state Vietnam are enlisted to take the lead in Sri Lanka’s opening to ASEAN’s rising economy. “At present we are far below the trade potential in comparison to the future target of $1Bn bilateral trade that we both target. At today’s meeting we formulated the directions of future trade and investment cooperation” said a pleased Hoang Quoc Vuong (Vietnamese Vice Minister of Industry and Trade) on 26 March in Colombo.

Vice Minister Vuong was making a brief statement at the evening’s signing event of minutes of the first meeting of Sub-Committee on Trade under the Viet Nam – Lanka  Joint Commission held in Colombo on the same day. Vice Minister Vuong was leading the eight-member Vietnamese team while RDS Kumararatne (Director General-Department of Commerce) led the Lankan team at the 26 March official talks. Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) and (HE-Madam) Phan Kieu Thu (Vietnam’s Ambassadress to Sri Lanka) joined the evening session to witness the signing of agreed minutes which were signed by SS Miyanawala (Secretary, Ministry of Industry and Commerce) and  Kran Kuang Huy (DG-South West Asia & Africa Department of Ministry of Industry and Trade of Vietnam, Hanoi).

“At present we are far below the trade potential in comparison to the future target of $1Bn bilateral trade that we both target” said Vice Minister Vuong, and added: “At today’s successful meeting we formulated the directions of future trade and investment cooperation. We are a one-party communist state but now following market economic policies with greater enlistment of our private firms and as a result, in this effort, we are moving our private sector for this.”

Vietnam is the third rising economy within ASEAN followed by Indonesia and Philippines.  According to the Department of Commerce of Sri Lanka, bilateral trade between the two countries have been increasing steadily. Total trade jumped by a strong 88% to $224 Mn in 2013 from 2012’s $120 Mn. It further increased by 17% to $271 Mn in 2014. Interestingly, the growth was driven by the increase of Lankan exports to the 90 million market of Vietnam-a huge 84% rise in 2014 to $79Mn from 2013’s $43 Mn. In 2013, 10% of Lanka’s exports to Vietnam were natural rubber while apparels exports stood at 2%.

“Today I am pleased of the success of the first meeting of Sub-Committee on Trade under the Viet Nam – Lanka  Joint Commission. Today’s successful discussions have identified apparel, rubber, coconut, chemical, footwear & leather, rice, agro-machineries as promising products for future bilateral cooperation” said Minister Bathiudeen, making a brief statement, and added: “Sri Lanka has requested concessionary actions from Vietnam and since there are no trade agreements between both countries at present, Vietnam has consented to commence a study on its side to identify Lankan items that could receive such concessions. A Trade Agreement can help in this regard. We need to understand that Vietnam is also a growing ASEAN member and future openings for Sri Lanka could give our exporters this promising ASEAN-the seventh largest economy in the world, in addition to Vietnam market itself. A Trade Agreement can help in this regard. Both countries being well known producers of rubber and apparel in the world, there are complementarities where both could jointly find win-win trade outcomes. The overall thrust is the engagement of private sector players from both sides to move the process of bilateral trade expansion forward.”

Since 1978, almost ten agreements and MoUs have been signed between Sri Lanka and Vietnam in Trade, Civil Aviation and Economic, Scientific, Culture and Technical Cooperation. The MOU on Oil and Gas Cooperation is between the Ministry of Industry and Trade of Viet Nam and Ministry of Industry & Commerce and the Prime Minister’s Secretary Office of Sri Lanka.