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Minimising risks when trading with Africa
The African market has great potential, however, there are many hidden risks for traders, said Ly Quoc Hung, Head of the Ministry of Industry and Trade (MoIT)’s Africa-West Asia-South Asia Markets Department.
Hung stated this at a seminar in Hanoi on March 8 about minimizing risks when trading with Africa.
Participants in the seminar talked about the advantages and disadvantages of doing business in Africa, the contents of import-export contracts, methods of preventing risks in trading and resolving disputes through an arbitrator.
Vietnam-Africa trade turnover increased from US$15.5 million in 1991 to US$2.56 billion in 2010. With high purchasing power and great demand for imports, Africa is a significant potential trading market for Vietnam, Hung noted.
Nevertheless, most African countries are under developed, the laws and policies are still being shaped, infrastructure is backward, the banking system isn’t growing well and there are still limitations on information. This has caused some difficulties and made Vietnamese businesses shy of doing business, widening cooperation with African partners and penetrating the African market.
To increase trade cooperation with Africa, the Government launched a national action plan to promote relations with Africa in the 2008-2010 period. On October 4, 2010, the MoIT approved the plan to push exports to Africa.
Vietnam-Africa trade turnover is expected to reach US$4-5 billion in the future.
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