Tehran-Hanoi Trade Volume Doubled in One Year

IRAN NEWS ECONOMIC DESK

TEHRAN – Head of Iran-Vietnam Joint Chamber of Commerce says the trade volume between Iran and Vietnam has been doubled in one year and it has jumped from $172m 20 $350m.

Speaking to ILNA news agency, Seyed Mostafa Mousavi said that Vietnam is a pilot country for major international companies due to its cheap workforce and any country which has problem with China starts producing its products in Vietnam and it is the best opportunity for Iran to import upgraded technologies via this country.

On formation of the Iran-Vietnam Joint Chamber of Commerce, he said that the chamber started its function almost two months ago and the chamber has collected some data bank because most Iranian and Vietnamese traders have scattered activities.

He went on to say that Vietnam is a country with strong economy as its economic growth has been on average between 6 to 8 percent and it is also a WTO and ASEAN member.

Mousavi also noted that Iran’s exports to Vietnam are mostly aquatic animals, bitumen, raw material for petrochemicals, oil products, minerals, zinc, copper and motor oil   and in return Iran imports mobile phones and its accessories, motherboard, coconut powder, coffee, bag, shoes and cinnamon.

He went on to say that according to the official statistics, the trade volume between both countries was $352m last year and the figure is not accepted by the chamber because according to the chamber’s estimation, the trade volume is around $700m because most of trade exchanges between both countries are done via the third party countries due to sanctions.

Mousavi said that due to sanctions, Iran uses the capacities of companies in Turkey and Oman for its exports to Vietnam and in return, Vietnamese goods are imported via the UAE and it is the reason why the chamber believes $352m is not a real figure for bilateral trade volume.

He went on to say that on January 5, the first joint Iran-Vietnam workgroup will convene at Iran’s Trade Promotion Organization and both countries are to sign some MoUs in the meeting.

Mousavi reiterated that Vietnam is a country interested in expanding trade with Iran but banking and SWIFT problems have forced both countries to turn to barter trade.

He went on to say that if transfer of money is eased, exporters can be more active in Vietnam’s market because they still have problem in banking transactions.

Mousavi stated that most of Vietnamese goods are high quality ones and better than their Chinese likes, adding that almost 21 percent of Vietnam’s exports are the U.S. or EU-bound, especially to Germany.

He said sanctions have forced Iran to focus more on trade with neighboring states but it should not be negligent of trade with other countries.