Vietnam, Bangladesh eye booming trade, investment ties

Experts gathered in Ho Chi Minh City on August 7 to underscore the immense potential for trade and investment cooperation between Vietnam and Bangladesh.

Vietnamese, Bangladeshi entrepreneurs discuss cooperation at the conference

The business networking conference, co-organised by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) and the Ministry of Industry and Trade’s Asia-Africa Markets Department, served as a platform to explore opportunities in these two burgeoning economies.

ITPC Deputy Director Tran Phu Lu highlighted Bangladesh’s position as Vietnam’s second-largest trade partner in South Asia, accounting for 9.3% of Vietnam’s total exports to the region.

Data from the General Department of Vietnam Customs showed that two-way trade has surged dramatically over the past decade, from around 350 million USD in 2012 to over 1.06 billion USD in 2023. The upward trend continued in the first half of 2024, with trade reaching 562 million USD. Vietnam’s exports to Bangladesh, primarily comprising clinker, cement, textiles and plastics, fetched an estimated 505 million USD during this period. Conversely, Vietnam imported pharmaceuticals and steel scrap from its South Asian neighbor.

Bangladesh has also emerged as an investor in Vietnam, with 20 projects valued at 980 million USD as of June 2024.

Trade between Ho Chi Minh City and Bangladesh has been particularly vibrant, surging by 43% year-on-year to reach 36.57 million USD in the first seven months of 2024.

According to Lu, collaboration in information technology, apparel, Halal products, software services, trade promotion, banking, and tourism are seen as key drivers of growth for business in both nations.

Md. Ashraf Ahmed, President of the Dhaka Chamber of Commerce and Industry, proposed expanding cooperation into areas such as hi-tech agriculture, farm mechanisation, processing of value-added farm produce, aquaculture, dairy products and confectionery, construction materials, pharmaceuticals, medical equipment, industrial machinery, lighting technology, electronics, information technology, fintech, and Halal products.

Ahmed underlined Bangladesh’s attractiveness to Vietnamese investors, citing its competitive investment framework that features diverse financial and non-financial benefits, and a favourable legal environment.

Notable incentives include a 100% tax exemption policy, foreign ownership, bonded warehousing, and intellectual property protection. Additionally, Bangladesh has established the Bilateral Investment Treaties (BITs) and Double Taxation Avoidance Treaties (DTTs) with 35 countries, including Vietnam.

To elevate economic ties to new heights, regular exchanges of trade delegations and business-to-business meetings are essential, he stressed./.

VNA