Upbeat trends in Vietnam-Ukraine bilateral trade

21:17 02/03/2018
Bilateral trade between Vietnam and Ukraine showed a considerable growth during the first month of the year with Vietnam enjoying a trade surplus of US$13.8 million, an 11-fold increase when compared to the same period last year.

According to preliminary statistics from the General Department of Vietnam Customs, bilateral trade between the two nations surged 22.2% beyond last January to US$35.5 million. Exports were the main driver of the figure, rising 62.2% to US$24.6 million while imports dropped 21.9% to US$10.8 million.

Bilateral trade has seen a positive growth from 2016 up to now and is projected to continue its strong performance this year.

Telephone and components make up 64.5%

In January 2018, Ukraine imported products from 11 of Vietnam’s commodity groups, mainly telephone and components, with a turnover reaching US$15.9 million (accounting for 64.5% of total import turnover).

Plastics ranked second among the major imports in commodity groups at US$512.800, a five-fold increase compared to the same month last year, trailed by seafood, garments and textiles, and footwear with a reduction in turnover.

Vietnam’s key export items to Ukraine include cashew nuts, pepper, and tea. This year, rice was absent from the list of export items to Ukraine but two more items were added, namely rubber, and iron and steel in various types. The Southeast Asian nation’s major imports from Ukraine are machinery, equipment, appliances, and spare parts.

According to economic experts both nations will experience a sharp increase in trade turnover this year. To facilitate all-round cooperation in potential areas and friendship between Vietnam and Ukraine, and support businesses seeking investment opportunities, the Vietnamese Embassy in Ukraine and the Ukrainian Chamber of Industry and Commerce organised a forum in last October which promoted the benefits of the Vietnam-Ukraine relationship for the new period.

Both countries seek more business opportunities

The forum was held in coincidence with the 14th meeting of the Vietnam-Ukraine Inter-Governmental Committee on Economic-Trade and Scientific-Technological Cooperation, thus fostering profitable business opportunities and herald a new period of development in comprehensive cooperation between Vietnam and Ukraine.

At the forum, representatives from the Ministry of Industry and Trade and the Vietnamese ambassador to Ukraine emphasised the significance Vietnam-Ukraine relations, underlining the important role of businesses in promoting the relationship between the two sides, outlining orientations for cooperation and solutions to develop production and business activities, as well as supporting the Vietnamese community in Ukraine. The two countries have also stepped up cooperation at all levels.

Specifically, in late 2017, the Dong Nai provincial People’s Committee signed a memorandum of understanding (MoU) with leaders from Ternopil, Urkaine covering activities of industrial parks (IP).

Under the MoU, both sides exchanged views on issues of shared concern and investment and cooperation practises, and, examined ways to facilitate the operations of businesses in both Ternopil and Dong Nai. Ukraine has also adopted incentive policies for foreign investors operating in the country. From 2022, Ukraine will provide full tax exemptions on some kinds of imported machinery and spare parts.

Head of Ternopil Regional State Administration, Stepan Barna, said the western Ukrainian city has strengths in agricultural development with staple export products such as alcohol, milk, and poultry meat.

Tran Van Vinh, vice chairman of Dong Nai provincial People’s Committee said the locality has advantages in developing the industry sector. So far, the province is home to 32 IPs, which have attracted more than 1,200 FDI projects totally capitalized at US$30 billion.

Dong Nai and Ternopil will continue to boost cooperation in such fields as industry, trade, and services and other areas of particular strength.