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Door to make billions of dollars in the land of the super rich

The total import value of food and foodstuffs from the Middle East is expected to increase to 70 billion USD/year by 2035. The import structure is quite suitable for the commodities that are the strengths of Vietnam.

Potential from the market of oil “rich people”

“16 Middle Eastern countries are emerging as potential export markets for Vietnamese businesses, with a population of about 400 million people and a high standard of living” – this is the assertion of Mr. Ho Chi Minh City Investment and Trade Promotion Center (ITPC).

According to Mr. Tuan, trade Middle East region flourished and grew strongly after the period of the global economic crisis in 2008-2009, the situation of oil prices fluctuated strongly.

Currently, Vietnam’s trade relations with the Middle East region mainly focus on the countries of the Gulf Cooperation Council (GCC) with 6 member countries being the United Arab Emirates (UAE). ; Saudi Arabia; Kuwait; Bahrain; Qatar and Oman. These countries have open economies that promote import and export.

Notably, GDP per capita in GCC reached a high level. Specifically, in 2021, Qatar is 60,000 USD; UAE is 41,000 USD; Kuwait is $25,000 and Saudi Arabia is $22,000.

Door to make billions of dollars in the land of super rich people
Wood is a commodity that the Middle East market has great import demand

According to Ambassador Extraordinary and Plenipotentiary of Vietnam in Kuwait – Mr. Ngo Toan Thang, in recent years, Vietnam’s import and export turnover to GCC countries has increased rapidly and has increased dramatically from 2012 to present. . If in 2012, import-export turnover reached $2.7 billion, in 2021 it will reach $12.5 billion, equivalent to an increase of 4.6 times.

Therefore, opportunities for Vietnamese enterprises in the GCC market are wide open with many advantages. GCC block has large purchasing power, high solvency due to abundant financial resources. The structure of GCC’s import and export products is quite suitable for Vietnam’s strong export products and needs.

More information about the Middle East market, Deputy Director of ITPC said, these countries have very large import demand (ranging from 2-8 billion USD) for items such as wooden furniture, plastic products, cereals, textiles, footwear, rubber and rubber products, meat, milk and dairy products, vegetables and fruits of all kinds, etc. These are the strong commodities of Vietnam.

However, our proportion of these items in the import structure of Middle Eastern countries is still low, not commensurate with the potential. Statistics show that these countries import about 80% of food items, equivalent to about 40 billion USD/year. By 2035, the total value of food imports from the Middle East is expected to increase to $70 billion per year.

Another advantage when exporting to the Middle East, the import tax rate is only from 0-5% for goods imported from outside the bloc. Because of this, the Middle East becomes a potential market for Vietnam.

Strict requirements

Currently, Ho Chi Minh City’s main products exported to the Middle East countries include: seafood, vegetables, fruits, coffee, pepper, textiles, computers and electronic components, phone components.

However, ITPC leaders said that Vietnamese enterprises in general and Ho Chi Minh City in particular still face many difficulties in accessing this potential market. The reason comes from the lack of information, barriers to logistics and international payments. In particular, the Middle East market has a special business culture and often requires Halal certification. Muslims in the Middle East countries in particular as well as globally only use Halal products.

Door to make billions of dollars in the land of super rich people
Halal certification form (illustration image)

The Halal industry is very diverse with many products and services such as confectionery; food and beverages; Milk Products; Organic food; Herbal; cosmetic; medicine; Bank; bonds and securities; tourism; logistics and supply chain; education and training; Food services…

Ms. Nguyen Thi Ngoc Hang – representative of Halal Certification Office – HCA Vietnam, said that Halal certification is an assessment program according to international standards for responsible products/services.

Evidence of the rigor of Halal. A company that requires Halal products but produces products related to banned substances (pork, wine, beer), the line that has produced pork related products is required to clean according to Islamic rituals. education before proceeding to produce Halal products (only done once). In addition, the production line of pork products must be completely separate in terms of factories, equipment, and people from the Halal product line.

When certifying a product with a specific brand name, it is mandatory to conduct a site audit of all factories producing products bearing the same brand name (including outsourcing units); the product does not simulate the image of the breed, the product packaging does not have a pork image, related to the pig; Product name must not be related to other religion, not related to Haram (prohibited).

During the Halal assessment, the assessment agency will conduct the traceability of raw materials and all ingredients in the production process, so businesses need to be very careful in this stage. After being certified, enterprises must also pay attention when releasing new products, changing raw materials… must ensure Halal integrity in the production process.

In return for the above strictness, when being granted a Halal certificate, enterprises can meet the requirements of exporting to Muslim countries; trusted by Muslims to buy, use, create trust for consumers. From there, helping businesses increase opportunities to participate in the global supply chain of Halal materials and products.

Tran Chung

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