As a result, bilateral export - import turnover has constantly increased high. In 2012, export turnover from Vietnam to 6 North African countries reached 608 millions USD, up 35% compared to 2011 and accounted for 25% of total export value of Vietnam to the whole region 55 countries of Africa. Import turnover from North Africa reached 84.2 million USD, up 225% and accounted for 8% of the total import value of Vietnam from Africa.
The first 6 months of 2013, due to the impact of the instable politic in Egypt, Sudan, exports turnover from Vietnam to this area only reached 305.75 million USD, decreased 14% year over year in 2012, while import turnover reached 14.87 million USD, up 62%. However, this is still the potential export market of Vietnam and promising prospects in the near future.
According to the geographical division of the United Nations, the North African including 6 countries: Egypt, Algeria, Morocco, Libya, Sudan and Tunisia. However, this is considered as a part of the Arab world, fair-skinned people are opposite to "black African" or "Sub-Saharan Africa" includes 48 countries.
The economy of Algeria country, Libya and Sudan based on the strength of oil resources and abundant natural gas which are located in the desert. Meanwhile largest export industry of Morocco is phosphates and agricultural products. For Egypt, Tunis and Morocco, tourism, industrial production of electronic goods, textile processing is a key economic sector.
After the Arab Spring movement passing (2011), the economy of North Africa was slowly recovering, grew 3.6% in 2012 of in which Libya grew 17% by boosting oil exports. Even import demand in these countries is higher than the time before the political events occured because of cosmetic production, a result of civil war.
North Africa is a market with total population of 210 million people of whom some Muslims constitute over 90%. Besides Arabic, English is used as common language (in Egypt, Libya, Sudan) and French (in An Algeria, Morocco and Tunisia Yet) . Over the time, these commercial fraud over the internet rarely happens in this area.
Previously, the North African countries mainly focus on developing economic cooperation and trade with traditional partners in Europe and the Americas (account for 80% of trade transactions). However, the financial crisis of the world has negative impact on aggregate demand for exported goods of North African so that the countries of this area are implementing in diversification objectives trading partners, towards developing the relations with Asian countries, including Vietnam.
North Africa is the region where the number of diplomatic missions and trade of the Vietnam trade is put the most in Africa. So far, Vietnam has opened its embassy in 4 countries as Egypt, Algeria, Morocco, Libya (on total 9 Vietnamese embassies in Africa) and has trading offices in 3 countries inlcuding Egypt, Algeria and Morocco (on total 5 trading in Africa).
In contrast, there are 5 North Africa countríe including Egypt, Algeria, Morocco, Libya and Sudan which want to open its embassy in Vietnam. This is an advantage for the bilateral enterprises find out information about market and partnership as well as the entry and exit procedures. Vietnam and North African countries also signed several important agreements, including trade agreements, the Agreement on Promotion and Protection of Investments, Agreement against double taxation ... create a favorable legal framework for business activity.
By focusing primarily on the development of serveral key industries such as oil and gas, minerals, phosphates so that producing activities in agricultural products and consumer goods in most North African cannot meet domestic demand. According to the WTO, among 10 markets in Africa, imports the most was North Africa in 2012, the market has to be 5 countries including Egypt (standing number 3 with 58.7 billion US dollars of turnover), Algeria (standing number 4 with 47.5 billion USD), Morocco (standing number 5 with 42.5 billion USD), Tunisia (standing number 6 with 23.5 billion USD) and Libya (standing number 10 with 16.3 billion dollars).
Among the main import items includes agricultural products (rice, coffee, pepper), seafood (fish, basa, shrimp), industrial products (textiles, textiles, computers and components event, phone, electronics, motor bikes and components) are the group of Vietnam products which are strong in exporting export and also has a foothold in this market over time.
In 2012, exchange trade between Vietnam and 6 North African countries reaches 692 million USD, of which export turnover of Vietnam reached 608 million USD, import turnover of Vietnam reached 84.2 million. In the balance of trade with the North African countries, Vietnam mainly trade surplus with great value. Regarding exports, Vietnam mainly exports to North Africa for agricultural commodities such as rice, coffee, pepper; seafood (fish and shrimp); clothes, phone and accessories; computer and electronic components; means of transportation. Regarding imports, Vietnam purchased textile footwear materials, crude oil, DAP fertilizer, pharmaceuticals, fish meal as animal feed from this area with volume and turnover are limited.
The largest export market of Vietnam in the North African area is Egypt. In 2012, exports turnover of our country to this market reached 297.82 million, up 26% comparing to 2011 with the main items including seafood products reached 79.66 million USD, followed by pepper 36, 46 million USD, many kinds of fibers, yarns 37.81 million USD, machinery, equipment, tools and spare parts reached 22.2 million USD, vehicles and spare parts 18 million USD, coffee 15 millions USD, garmet 9.5 million USD ... The first 6 months of this year, due to the instable political situation in Egypt, export turnover of Vietnam to this market only reached $ 122 million USD, down 34% year over year. However, Egypt continues to be the second largest export market of Vietnam in Africa after South Africa and is the largest export market of Vietnam in the North African region. Regarding imports, Vietnam purshase Egyptian commodities mainly in textile materials, footwear, ores and minerals, fiber, textile fibers of all kinds, from petroleum products, milk ... with a turnover of 7 , 55 million USD in 2012 and 5.2 million USD in the first 6 months of 2013.
Next is Algeria market with export turnover reached 129 million USD in 2012, up 28% comparing to 2011 in which coffee accounted for 58,96 million USD, rice of 35.61 million USD, seafood of 9.5 million USD, pepper of 6.5 million USD, computers, electronic products and components 3.4 million USD, phones and components 3.2 million USD, grocery of 2 million USD .. .The first 6 months of this year, exports turnover of our country to this market reached 88 million, up 5% comparing to the same period in 2012. Algeria is the second largest export market of Vietnam at North Africa and 5th in Africa. Vietnam's imports from Algeria insignificant increase only reached 1 million USD in 2012 and 1.13 million USD in the first 6 months of 2013, with the carrot flour, wood, steel, pharmaceuticals.
In 2012, Viet Nam export turnover to Morocco reached 81.75 million, more than doubled compared to 2011 while exports reached 36.8 million phones, coffee 13.67 million, goods seafood 4.2 million, ships 2.8 million types, fiber types 2.6 million textile, iron and steel products from US $ 2 million, 1.9 million fabrics ... In 6 months of this year, exports to Morocco reached 50.10 million USD, up 19% over the same period. Regarding Vietnam's imports from Morocco only reached 2.9 million in 2012 and 4.2 million USD in the first 6 months of 2013 with the DAP products, marine products, textiles, computers, real electronic products & components, textiles, pharmaceuticals, textile raw materials, leather and footwear.
Ranked at number 4 in North Africa market is the Tunisia market with export turnover reached $ 43.6 millions USD in 2012, double increase in 2011. The main export items of Vietnam to Tunisia including coffee reached 16 million USD, seafood of 11 million USD, pepper of 4.2 million USD, telephones and components of 3.9 million USD, cashew nuts of 2.6 million USD, ... the first 6 months of this year, exports turnover to Tunisia reached 21.38 million USD, down 8%. On the import, turnover reached 7.6 million USD in 2012 and 3.4 million USD by the end of section II / 2013 including machinery, chemicals, animal feed, textile products.
Standing at number 5 is Sudan export turnover reached 28.9 million USD in 2012, an increase of 28% in which textiles accounted for 15.5 million USD, 2.4 million USD of rice, aquatic products of 2, 2 million USD, 1.5 million USD of auto parts. The first 6 months of 2013, export to Sudan reached 9.8 million, down 18%. Regarding imports, turnover reached only $ 375,705 in 2012 and $ 94,528 in the first 6 months of 2013, with the main items are Arabic, shells, scrap metal.
In 2012, export turnover to Libya reached 27.2 million, up 273% compared to 2011. The Vietnam exported goods to Libya mainly seafood 6.5 million USD, textiles product 3.57 million USD, cashew nuts 2.7 million USD, bags, purses, suitcases, hat, umbrella of 2.36 million USD, coffee of 1.96 million USD, confectionery and cereal products 1 , 5 million USD ... At the end of section II / 2013, exports to Libya reached 14.47 million USD, up 66%. On the import side, in 2012, turnover was 63.6 million, mainly crude oil. This is the first year Vietnam imported crude oil from the North African country. However, six months of this year, Vietnam does not import what goods from Libya.
Along with the political situation in the North African countries the economy is stabilizing and improving thanks to the increase in price of oil and mineral on the world market, stimulating domestic demand, North Africa will be Vietnam promising products in increasing export turnover in the coming period of time.
Currently, in addition to normal commercial activities, businesses in Vietnam and Africa tend to invest in the potential market to take advantage of abundant raw materials, cheap labor source and enjoy the privileges of production taxes and export or re-export site.
In 2006, the Ministry of Planning and Investment has licensed the Vietnam Oil and Gas Group (PVN) invested 208 million USD into Algeria for exploration and exploitation of oil and gas. This is considered as a breakthrough in Vietnam's oil and gas industry to expand cooperation in oil and gas exploration in Africa.
Currently, oil and gas joint venture "Bir Seba" (BRS) between PVN, the National Oil Company Algeria (Sonatrach) and PTT Public limited company is actively preparing the facilities, equipments for the mining under the same name in the first quarter 2014.
About the investment situation of North African countries in Vietnam, by the end of 2012, Morocco has one investment project in the field of fashion, apparel totaling $ 1 million.
Egypt 1 project has produced bubble with total capital of $ 400,000 categories.
Source: moit.gov.vn
Viet Nam and North Africa
