The EVFTA Agreement helps elevate Vietnam’s trade relations

Vietnamese Ambassador to Latvia Tran Van Tuan affirmed this in an interview with a reporter from Industry and Trade Newspaper.

EVFTA takes effect, two-way import and export increase by 33%

Ambassador, please share briefly about the trade situation between Vietnam and Latvia recently. What does the Ambassador evaluate about the potential of the Latvian market for Vietnamese businesses, especially when the EVFTA Agreement has taken effect since August 8?

According to the data we know, in 2023, import-export turnover between the two countries will reach 311,73 million USD, of which, Vietnam exports 292,23 million USD to Latvia (up 57,2%) and Vietnam. Vietnam imported from Latvia 19,5 million USD (down 6,9%) compared to the same period in 2022. If compared to 2020, the year the EVFTA Agreement began to be implemented, the import-export turnover between the two countries has increased. about 33%. The high growth rate in just three years shows that the EVFTA Agreement has had positive effects in exploiting the potential and further promoting trade relations between the two countries.

Currently, Latvia is Vietnam’s largest economic partner in the Baltic region. On the contrary, Vietnam is also Latvia’s largest trading partner in the ASEAN region. The two countries still have a lot of room for development cooperation, especially in the fields of import and export of agriculture – forestry – fishery, pharmaceuticals, labor… Therefore, I think Latvia is a potential market for foreign investors. Vietnamese businesses, especially in fields related to agriculture – forestry – fishery, education and science and technology.

With the above potential, how does the Ambassador evaluate the presence of Vietnamese products in the distribution channels of the Latvian market today?

Despite having a lot of potential, in general, Vietnamese goods have not appeared much in the distribution channels of the Latvian market and there are no large warehouses or supermarkets importing and distributing Vietnamese goods in this country. Although there are currently a number of stores and supermarkets owned by Vietnamese people that sell Vietnamese products, the scale is not large. The source of goods is mainly imported from large Vietnamese import enterprises in neighboring countries such as Germany, Poland…

The main reason is because the geographical distance between Vietnam and Latvia is quite far, transportation is difficult because there is no direct flight or direct sea transport connection. We know that there are currently a number of Vietnamese airlines and seaports that are researching to open direct air and sea routes between the two countries, but this plan has not yet been implemented.

In addition, trade and investment promotion activities between the two countries have not been carried out regularly, causing businesses from both sides to not have enough information about mechanisms, policies, markets, needs, and capabilities. each other’s power. This has led to the cooperation and business of the two countries’ businesses in general, as well as the bringing of Vietnamese goods to Latvia in particular, not being as expected.

Global Sourcing Fair Vietnam 2024 and Gateway to Viet Nam Conference: Increasing the presence of Vietnamese goods in Latvia

It is known that on April 9, the Vietnamese Embassy and Trade Office in Sweden, concurrently responsible for the Northern European market, in coordination with the Latvian Chamber of Commerce and Industry, will organize the Gateway to Vietnam Conference to introduce the investment environment. doing business in Vietnam and the opportunities brought by EVFTA to Latvian businesses. At the same time, the Latvian Chamber of Commerce and Industry is also organizing a Latvian business delegation to Vietnam to attend Global Sourcing Fair Vietnam 4 next April. Ambassador, please share about the meaning, goals and expectations of this important event?

As I said above, one of the reasons why trade and import-export activities between the two countries are not as expected is because trade and investment promotion activities between the two countries have not yet been implemented. do it regularly. Therefore, I am very happy that the authorities of the two countries have coordinated to plan to organize the Gateway to Vietnam Conference on April 9, as well as bringing a Latvian business delegation to Vietnam to attend the Global Sourcing Fair. Vietnam 4 in the near future.

Through this conference and the event of the Latvian business delegation entering Vietnam, with information provided by the Vietnam Trade Office and the Latvian Chamber of Commerce and Industry, I believe that agencies and businesses of the two countries will understand know more about each other. At the same time, specific measures will be introduced to strengthen cooperation and gain more benefits for both sides; actively contribute to developing friendly relations between Vietnam and Latvia.

With the support of the Vietnamese Embassy and Trade Office in Sweden (also responsible for the Northern European market), what advice does the Ambassador have for Vietnamese businesses so that Vietnamese goods can better take advantage of the EVFTA, currently? Better representation in the host country market?

Although Latvia is a small market, with only about 2 million people, this country is located in the center of the Baltic region (an area of ​​about 175.000 kmXNUMX).² and population of over 6 million people), has very favorable conditions to connect with neighboring Baltic countries Estonia and Lithuania. Therefore, I think that domestic businesses should look at Latvia as a gateway to access the Baltic market in general.

In the immediate future, Vietnamese businesses can research investments to open warehouses and representative offices in Riga – the capital of Latvia to grasp the needs and tastes of the entire Baltic market for goods and products. of Vietnam; Increase participation in local fairs and cultural and trade events to promote Vietnamese goods.

Besides, the Vietnamese community in Latvia has not been established for a long time, but most of them have quite high qualifications, and will be a bridge for economic and trade relations between the two countries. In addition, Latvia is also in need of recruiting many qualified and highly skilled workers in a number of fields such as: Information technology, health care, elderly care, forestry and fishery processing… Therefore, this is a potential market for Vietnam’s labor export activities to this area.

What recommendations does the Ambassador have for domestic authorities to promote economic – trade – investment cooperation between Vietnam and Latvia?

In order for economic – trade – investment cooperation activities between Vietnam and Latvia to be further enhanced, in addition to constantly tightening the traditional friendship relationship, transportation connection is of utmost importance. head. Therefore, we would like to recommend that the authorities and domestic transportation businesses pay more attention to establishing direct flights and sea transportation routes connecting directly between airports and ports of Vietnam. Vietnam and Latvia in particular and the Northern Europe – Baltic region in general.

If this problem is resolved, I firmly believe that trade activities between Vietnam and the Nordic and Baltic regions will grow spectacularly.

Thank you Ambassador!