This is considered a strategic step to open a new chapter in economic and trade relations between the two countries, especially in the context of Vietnam and Algeria having just upgraded their relationship to a Strategic Partnership.
According to the memorandum of understanding, VCCI and CACI will coordinate to organize many promotional activities, direct business-to-business (B2B) connection programs, and disseminate information about fairs and exhibitions in each country. This contact network is expected to become a “hotline” to support businesses on both sides in finding partners, accessing market information, and removing barriers to mutual penetration.
VCCI hopes that this new mechanism will create a boost for joint initiatives to achieve specific, quick results that are in line with the long-term interests of the business communities of the two countries.
VCCI President Ho Sy Hung emphasized: “Through this Memorandum of Understanding, VCCI wishes to elevate the economic partnership between Vietnam and Algeria to a new level. Our strategic goals include promoting bilateral trade, facilitating information exchange activities and encouraging more diverse and sustainable investment cooperation models between the business communities of the two countries.”
Vietnam and Algeria have enjoyed a good traditional relationship for decades, always trusting and supporting each other in many fields. However, the bilateral trade turnover has only reached nearly 200 million USD, a modest figure compared to the potential of two economies with complementary commodity structures.
Of the total turnover, Vietnam had a trade surplus of almost 192.3 million USD, mainly thanks to agricultural products, seafood, consumer goods and electronic components. As for Algeria, this market is considered to have great potential with high import demand and a strategic location in North Africa, creating conditions for Vietnamese goods to access the wider West African region.
Currently, Vietnamese enterprises are particularly interested in export opportunities to Algeria such as: agricultural products (cashew nuts, coffee, pepper, rice), processed seafood, electrical and electronic equipment, construction materials, consumer goods, textiles and footwear, logistics cooperation, Halal services and solar energy.
In the opposite direction, Algerian enterprises also wish to boost exports to Vietnam of typical products such as dates, olives, minerals, and fertilizers, while seeking tripartite cooperation in aquaculture and food production.
In the investment field, the Bir Seba oil and gas project of the Vietnam Oil and Gas Exploration and Production Corporation (PVEP) with a total capital of over 1.26 billion USD is considered one of Vietnam's most successful overseas investment projects. This success demonstrates mutual trust and is the foundation for promoting new cooperation projects in energy, mining, infrastructure and renewable energy.
The VCCI President said that VCCI is ready to support Algerian enterprises to access the Vietnamese market and the vast ASEAN region, and hopes that CACI will support Vietnamese enterprises to explore new economic zones and opportunities in the energy-mining sector in Algeria. Through Algeria, Vietnamese enterprises have the opportunity to expand their presence to the North African and West African markets, areas with rich potential but few Vietnamese enterprises have explored.
The Memorandum of Understanding between VCCI and CACI took place at a time when the Vietnam-Algeria relationship entered a new phase after the two countries upgraded to Strategic Partnership. This is not only a cooperation document but also a common affirmation of the determination to expand comprehensive economic cooperation, creating a solid bridge for the business communities of the two countries to fully exploit the advantages of each market.
During the official visit to Algeria, Prime Minister Pham Minh Chinh also suggested that Vietnamese enterprises focus on investment cooperation in Algeria in the energy sector, including oil and gas exploitation, petrochemical refining, wind and solar energy development; and at the same time, research investment in the fields of agriculture, fisheries, agricultural and aquatic product processing, production, science and technology because Algeria has a geographical location, climate, resources and many potentials and strengths for investment.
It can be seen that with direct support from the governments of the two countries, as well as from VCCI and CACI and the increasing demand from businesses, Vietnam - Algeria cooperation is expected to enter a period of stronger, more substantial and more sustainable growth in the coming years.
To improve feasibility and promote the implementation of the cooperation aspirations achieved in substance, the two sides have initiated the establishment of a Working Group. This content has been included in the Memorandum of Understanding (MOU) between VCCI and CACI. The business component in the Working Group plays the role of a focal point for reviewing, specifying the objectives and activities in each project and specific field according to the needs of the business.
The working group will be proactive, actively seek export products, find a solid position in each country, towards increasingly diversifying and multilateralizing export products, promoting trade exchanges between the two countries. Algerian enterprises and investors participating in the working group will negotiate with Vietnamese enterprises to find specific cooperation opportunities so that Vietnam can export more products to the Algerian market and vice versa, especially in the fields of technology, agriculture, digital transformation, energy, oil and gas, pharmaceuticals, and promoting tourism.
In addition, the Working Group will support businesses in handling difficulties, especially in procedures and regulations in each market, logistics issues, tariffs and other specialized regulations, and propose policy recommendations to the Governments of the two countries to improve the business environment and increase competitiveness for businesses.
It can be said that the concretization of desires and needs according to the conditions of each enterprise is expected to be a big change for the realization of the contents of the Memorandum of Understanding between VCCI and CACI.
Up to now, there are a number of enterprises that have established relationships and are taking advantage of the opportunities when exploiting the Algerian market, such as: Oil and Gas Exploration and Production Corporation, ROX Group (in the field of oil and gas, energy), Intimex, Hanfimex (in the field of food, rice, spices processing)... VCCI hopes that these enterprises will continue to play a pioneering role in sharing experiences with other Vietnamese enterprises wishing to penetrate the Algerian market.
Source: https://nhandan.vn/hai-lien-doan-thuong-mai-va-cong-nghiep-viet-nam-va-algeria-tang-cuong-hop-tac-nhieu-mat-post924689.html
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