On March 19, 2024, in Hanoi, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Pham Tan Cong received Bakhtiyor Saidov, Minister of Foreign Affairs of Uzbekistan, who is on an official visit to Vietnam.
Accompanying Minister Bakhtiyor Saidov was a delegation of 30 senior officials from the Uzbekistan government and over 40 leaders of business associations and large corporations in Uzbekistan operating in various sectors such as agriculture, agricultural machinery, livestock farming, agricultural products, food, textile and garment, pharmaceuticals, travel and tourism, electronics, and commerce.
TRADING RELATIONSHIP IS STILL MODEST
According to the data from the Vietnam Customs, in 2023, the trade exchange between Vietnam and Uzbekistan reached $160 million, a 32% increase compared to the same period in 2022. Vietnam’s exports amounted to $73.5 million (a 63.1% increase), and imports reached $86.2 million (a 13.5% increase).
The main exports from Vietnam to Uzbekistan include computers, electronic products and components, wood and wood products, plastic materials, etc.
Vietnam imports from Uzbekistan include textile raw materials, leather and footwear, plastic materials, various types of fertilizers, etc.
Currently, there are only small-scale Vietnamese businesses operating in the restaurant and aquaculture sectors, and there are no investment projects between the two countries.
In his statement during the meeting, Pham Tan Cong said that despite Vietnam and Uzbekistan establishing diplomatic relations since 1992 and signing an Agreement on Economic and Trade Cooperation in 1994, the overall economic and trade relationship between Vietnam and Uzbekistan is still modest compared to its potential.
In fact, there is a lot of room for cooperation between the two countries. Uzbekistan is known for its strength in the cotton industry, with Uzbekistan being the world’s third-largest exporter of cotton. Uzbekistan is also a producer of gold, natural gas, important chemicals, and machinery in Central Asia.
On the other hand, Vietnam needs to import a large amount of cotton to serve its domestic garment industry. Moreover, Vietnam has a lot of industrial products, consumer goods, and strong export items such as tea, coffee, and seafood that can meet the import demand of Uzbekistan.
In addition, Vietnam has experience in economic transformation and has achieved success. This also indicates that the two economies, specifically the business communities of the two countries, have the motivation to cooperate and develop together.
Bakhtiyor Saidov, the Uzbek Minister of Foreign Affairs, considers Vietnam an important partner of Uzbekistan in Southeast Asia and an emerging star in international business. It is no coincidence that more than 400 EU companies see Vietnam as an excellent investment destination.
“We have noticed that the Vietnamese Government is determined to enhance cooperation with Uzbekistan in various ways. In the past five years, the bilateral trade between the two countries has increased by 2.5 times. Uzbekistan has invested in over 20 companies in Vietnam, but it still does not match the great potential of the two countries. There are still many opportunities that we have missed, and it’s time to enhance bilateral cooperation,” said Bakhtiyor Saidov.
DOORS OF COOPERATION ARE ALWAYS OPEN
According to the Chairman of the VCCI, in 2008, the VCCI signed a cooperation agreement with the Chamber of Commerce and Industry of Uzbekistan. However, both sides admit that the cooperation has not been extensive and has not achieved the expected results. Currently, both sides are promoting the establishment of the Vietnam-Uzbekistan Business Council in order to further support the business communities of both countries.
“Minister Bakhtiyor Saidov and I just had a working meeting to discuss mechanisms to strengthen trade and investment between the two countries, particularly the specific cooperation between the VCCI and the Chamber of Commerce and Industry of Uzbekistan in supporting the business communities to take advantage of the business and investment opportunities of each side,” informed Pham Tan Cong.
Bakhtiyor Saidov shared that Uzbekistan is a rich country with abundant mineral resources, and since 2017, Uzbekistan has been opening up to the world, making efforts every day and every hour to create the most favorable environment for business investment.
“I believe that Vietnamese businesses will have many opportunities and can find their own place in Uzbekistan in industries such as energy, machinery manufacturing, chemicals, food industry, wood processing, etc.,” said Bakhtiyor Saidov confidently.
Uzbekistan has many consumer products to introduce to the growing market of nearly 100 million people in Vietnam. Uzbekistan is ready to introduce Vietnamese businesses to the entire Central Asian market, which has great development potential. Uzbekistan is also ready to develop industries in Vietnam such as industrial equipment, agriculture, metallurgy, etc. “Our doors of cooperation are always open to welcome Vietnamese businesses,” affirmed Bakhtiyor Saidov.
The Uzbek Minister of Foreign Affairs also informed that Uzbekistan is making efforts to provide favorable support for Vietnamese businesses. For example, the Uzbekistan government is implementing policies to open up, remove barriers for businesses, and reforms that have had tangible results.
In recent years, Uzbekistan has granted over 200 business licenses, reduced taxes by half, reduced VAT from 15% to 9%, etc. Uzbekistan is reducing the role of the state in the economy, and more than 1,200 state-owned enterprises have been privatized so far, and by 2026, the number of state-owned enterprises will be reduced to one-third. The energy, transportation, healthcare, education sectors are being implemented in the form of public-private partnerships. The legal framework is expanding to support businesses, etc.
Furthermore, in May 2024, there will be direct flights from Uzbekistan to Vietnam to facilitate the business activities between the two countries.
