Vietnam, New Zealand expect trade value of 1.7 billion USD in 2020

Vietnam and New Zealand are eyeing 1.7 billion USD in two-way trade this year.

According to the Vietnamese Trade Office in New Zealand, Vietnam is currently New Zealand’s 16th largest trade partner. Bilateral trade enjoyed a three-fold increase in the decade since the two countries established their comprehensive partnership, from 320 million USD in 2009 to over 1 billion USD in 2018.

The figure is expected to rise to 1.7 billion USD as the two are working to upgrade relations to a strategic partnership and both are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The two economies also possess numerous advantages in complementing and supporting each other. New Zealand needs to import commodities which Vietnam holds strengths, such as garment and textiles, footwear, wood, tropical farm produce, and fisheries products, while Vietnam needs to import milk and dairy products, wine, lamb, fruit, and raw materials for garment and textiles and footwear from New Zealand.

Of note, New Zealand has permitted the import of three types of fresh Vietnamese fruit - mango, dragon fruit, and rambutan. Vietnam is also seeking to export fresh lemons and passionfruit to the country.

In return, Vietnam has opened its doors to New Zealand exporters of potatoes, beef, kiwi fruit, and apples.

Keith Conway, Chargé d’Affaires at the New Zealand Embassy in Vietnam, said the country welcomes the ratification of the CPTPP, as it is an important step in improving trade principles and will contribute to boosting investment and business between the two countries.

2020 is significant for both countries, as Vietnam is the ASEAN Chair and celebrations are underway for the 45th anniversary of bilateral diplomatic ties.

New Zealand Prime Minister Jacinda Ardern is scheduled to take part in the ASEAN-New Zealand Leaders’ Summit, which is viewed as a good opportunity for leaders to discuss measures to expand bilateral cooperation, especially in trade.

To expand the market share of Vietnamese exports in New Zealand, Le Hoang Oanh, Director of the Ministry of Industry and Trade’s Asia-Africa Market Department, suggested Vietnamese companies pay greater attention to trade and product promotions.

The ministerial-level Economic and Trade Joint Committee, established in 2005, is expected to convene its seventh meeting in the fourth quarter of this year in New Zealand to seek additional measures to expand bilateral trade.

Meanwhile, the Regional Comprehensive Economic Partnership (RCEP), once signed by the ten ASEAN member states and Australia, China, India, Japan, the Republic of Korea, and New Zealand, will form the largest free trade bloc in the world, with around 3.5 billion people and 30 percent of global GDP.

Minister of Industry and Trade Tran Tuan Anh said the agreement will bring about opportunities for Vietnamese businesses to boost exports, participate in new value chains, and attract more investment from New Zealand.

He recently asked New Zealand to support Vietnam in developing hi-tech agriculture and fostering sustainable growth.