Kazakh farmers may enter Vietnam’s market
“As you know, the Agreement on Free Trade Zone between the Eurasian Economic Union and Vietnam came into force on October 5, 2016. To enact it we need to solve transport and logistics problems, i.e. we should create the most suitable delivery routes for businesses. I want to emphasize that Kazakh and Vietnamese economies do not compete with each other. We offer the goods your market is lacking and you, in return, can bring your goods to our market. Thus, our businesses can complement each other”, Zhumakhanov said.
The diplomat also said that in order to enter the South-East Asia markets, Kazakhstan plans to use the East China port of Lianyungang where a joint Kazakh-Chinese venture was established.
“Today, we see a great opportunity to directly ship goods from Saigon Newport Corporation to the port of Lianyungang and further to Central Asia, Russia and Europe, Middle East and Turkey. This will be the shortest and fastest route for timely delivery of goods. At the same time, we are discussing all mutually beneficial options of transport development between Kazakhstan and Vietnam”, Zhumakhanov noted.
According to him, in 2016 as part of implementation of the Memorandum of Cooperation the cities of Almaty and Ho Chi Minh agreed to develop collaboration to explore the opportunities for trade and economic cooperation.
The Ambassador suggested arranging a B2B (business-to-business) meeting of the two countries’ entrepreneurs this year and during Vietnam Foodexpo 2017. The exposition will be held on November 15-18, 2017 in Ho Chi Minh City with nearly 30 countries annually involved.
B. Zhumakhanov reminded of the meeting of President of JSC NC Kazakhstan Temir Zholy Kanat Alpysbayev with Minister of Transport of Vietnam Truong Quang Nghia and General Director of GK Vietnam Railways Vu Ta Tung held on February 20 in Hanoi regarding development of cooperation in transport sector and arrangement of transportation of Kazakh agricultural products to the market of Vietnam, and tropical and sea foods from Vietnam.
Tran Vinh Nhung highlighted a great potential for the development of cooperation under the EAEU-Vietnam Agreement on Free Trade Zone.
“I kindly appreciate your efforts on promoting trade and economic cooperation between our countries. After signing the Agreement on Free Trade Zone between Vietnam and the Eurasian Economic Union, the main problem of its implementation will be logistics. We need to explore cargo transportation routes, find acceptable tariffs and eliminate administrative obstacles”, he said.
Tran Vinh Nhung told Kazinform about the prospects of development of the direct route from port Cat Lai (Ho Chi Minh City) to the port of Lianyungang and further by railway to Kazakhstan and other countries.
“The mentioned transport corridor can reduce cargo transportation time from 45 to 14 days which is very important for entrepreneurs”, he said.
According to him, only $10mln out of $366mln of the bilateral trade turnover volume between falls on Ho Chi Minh City. In this regard, the southern capital of Vietnam with the population of nearly 10mln people is not only ready to export its goods to Kazakhstan but also has a vast potential of consuming Kazakh agricultural products.
Following the meeting, the participants agreed that Ho Chi Minh City Administration will help Kazakh Embassy arrange meetings of Kazakh agricultural producers with the representatives of large companies of Ho Chi Minh City and join the Vietnam Foodexpo-2017.
It should be reminded that Kazakhstan can become a transit hub between South-East Asia and Europe.