VN ‘should export more to Indonesia'
VN ‘should export more to Indonesia'
Vietnamese companies should consider Indonesia a high-potential export destination and find niche markets to exploit in this country, an industry insider say.
A Thoi Bao Kinh Te Viet Nam (Viet Nam Economic Times) report yesterday quoted Vu Kim Hanh, chairwoman of the Vietnamese High-Quality Goods Producers' Association, as saying so.
She added that a few major Vietnamese companies like Vinamit, Nhon Hoa Scales and Trung Nguyen Coffee have already found success in Indonesia.
This was a good sign for Vietnamese companies, she said.
However, she also said that local firms should act with a sense of urgency or risk losing the opportunity to competitors from other countries.
Concurring with Hanh, Nguyen Tuan Quynh, deputy chairman of the HCM City Association of Young Entrepreneurs, noted that Indonesia was the fourth most populated country in the world and set to become one of the 10 biggest global economies by 2015.
Vietnamese companies should therefore study the market carefully and expand operations into the fellow ASEAN member nation, he said.
Agriculture was one of many potential sectors that Vietnamese companies must explore in Indonesia, participants at conference said last week.
A representative of the Industrial and Agricultural Machinery Company, Bui Van Ngo, said that they had successfully sold agriculture machinery to Indonesia.
He said Vietnamese companies should offer agriculture consult-ancy services in the country.
Indonesia also has potential to consume food products from Viet Nam as the two peoples have similar tastes.
Currently, the Pho 24 restaurant chain has established around 15 outlets in Indonesia.
Hanh said Vietnamese companies must study the model of food chains to establish these in foreign countries including Indonesia. This would, in turn, help producers of spices and other ingredients, she said.
A report presented by the General Department of Customs at the conference said trade turnover between the two countries has developed significantly in recent years.
In 2008, the bilateral trade turnover was US$2.5 billion. In 2012, it had increased to $4.6 billion and is expected to reach $5 billion before 2015 and $10 billion by 2018.
Exports from Viet Nam to Indonesia in 2012 topped $2.3 billion, about 50 per cent of the bilateral trade turnover that year.
In the first seven months of this year, the department said, export turnover to Indonesia had reached nearly $1.3 billion.
Products with high export value to Indonesia are vegetables and fruits, coffee, rice, petrol, mechanical products, garments, steel, telephone, electronic items and spare parts.
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