Solution for Egyptian market

Vietnamese businesses have not paid enough attention to researching Egyptian and other Middle Eastern and African markets.

Two-way trade turnover between Vietnam and Egypt over the past 2 years has hit US$200 million annually, mainly because of Vietnam’s trade surplus to Egypt. This is too small compared to populations of both countries. Egypt is a gateway for businesses to penetrate Africa and the Middle East. Many exhibitions, business forums and exchange visits have been organised but cooperative efficiency has not yet been improved. How to increase trade value with Egypt is still a complicated issue.

Two-way trade value between Vietnam and Egypt increased strongly from US$30 million to US$168 million in 2009 and to US$200 million this year but this does not match the two countries’ full potential.

To help Vietnamese products penetrate the Egyptian market, Vietnamese businesses should know the market’s demands. With a population of 80 million people, Egypt is a huge market with many requirements, which are not as strict as other markets. Vietnamese products can access the market easily, however, the most important thing is to find the market’s demand.

Currently, domestic businesses have not researched Egypt and other regional countries in the Middle East or Africa. Products exported to the market are simple, mainly agricultural products, footwear and garments.

Another difficulty for domestic businesses is price. Vietnamese products have to compete fiercely with those from Thailand, Malaysia, India and China. Therefore, businesses have to choose from competitive products in line with the market’s demand, for example, coconut rice, basa fish, shrimp, coffee and tyres.

When penetrating Egyptian market, Vietnamese businesses should research cultural factors, such as international payments, conducting surveys, attending fairs and seminars and seeking partners.

Dang Ngoc Quang, Vietnam’s commercial counsellor to Egypt, says that the Ministry of Industry and Trade is considering supporting key businesses to promote their strategy on the Middle East and Africa.

He adds that businesses should be patient and strengthen trade promotion activities, and attend fairs and exhibitions in Cairo.

In recent times, not only Vietnamese but also Egyptian businesses have paid more attention to each other. This demonstrates that despite the financial crisis, two-way trade turnover between the two countries has grown well with significant support from both governments. – VOV

Tags: Egyptian market