Economists said there was a golden chance for Vietnamese businesses to
export their products to Myanmar as its Government was making
numerous offers to foreign traders and investors.
Just 20 percent of domestic demand in the 58 million-strong market has
been met by domestic production, leaving significant room for imports.
The Myanmar Government has recently promulgated
numerous policies to encourage foreign trade and investment, including
mandates for establishing wholly foreign-invested companies and
streamlining application procedures for business visas.
In two consecutive months, July and August, Vietnam sent two
business missions to Myanmar for market surveys. Another mission
with the participation of 30 companies is expected to leave for the
potential market in October. The coming mission aims to study the
feasibility of building a showroom and shopping centre for Vietnamese
products in Yangon .
Many Vietnamese business
giants have already shaken hands with Myanmar partners. The Ton Hoa
Sen Group has signed a memorandum of understanding on investment in
producing corrugated iron, steel and construction materials worth 300
million USD with the Myanmar Ministry of Industry 2.
A similar investment has been planned by the Hoang Anh-Gia Lai Group
for a project to build a Vietnam-Myanmar trade and cultural complex in
Yangon.
The Vinashin Vung Tau has planned to
invest in a lobster farming project in Myanmar after success in
raising cold water fish such as salmon and sturgeon.
Back from a market survey trip in August, Ngoc Linh from the Ho Chi
Minh City Trade and Investment Promotion Centre guaranteed the Myanmar
market is opening its door wide for Vietnamese enterprises,
especially consumer goods, food processors and drug makers.
Statistics released by the Myanmar Customs Office showed that two-way
trade revenues increased 86.7 percent year on year to 56 million USD in
the first half of the year. Vietnam ’s exports rose by 53.5 percent
to 16 million USD.
Vietnam is the 14 th
largest exporter to Myanmar . Its hard currency earners ranged from
materials for the garment industry to assorted steels, medicines,
medical equipment, vehicle tyres and inner tubes, and building
materials.
Vietnamese products such as electric
lamps, medicines and aluminium products have taken a firm foothold in
the Myanmar market. Dien Quang brand, for example, has become the
second-best seller in electric lamps, earning some 1.5 million USD in
monthly export revenues.
Products from the Hau Giang Pharmaceutical Company have become popular in this market over the past three eyars.
Vietnam’s imports included timber, rubber latex, farm produce, raw seafood and copper.
A major problem facing Vietnamese businesses is fierce competition
with low-priced made-in-china products, with prices between 20 and 25
percent lower than those from Vietnam.
Linh
has advised businesses to facilitate trademark promotion campaigns along
with expanding distribution networks in an effort to make
made-in-Vietnam products familiar to customers in Myanmar .
Ambassador Chu Cong Phung gave another piece of advice - that
Vietnamese businesses should set up strong ties with Myanmar partners to
help clear the way for Vietnamese exports into Myanmar./.
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