Vietnam, New Zealand eye further trade growth
Economic and trade ties between Vietnam and New Zealand have developed continuously since the upgrade of bilateral ties to strategic partnership in September 2009, and the upcoming visit to New Zealand by Prime Minister Pham Minh Chinh is an occasion for leaders of both countries to discuss orientations to further consolidate political trust and multifaceted cooperation.
According to the Vietnamese Ministry of Industry and Trade’s Asia-Africa Market Department, Vietnam is now the 14th largest trade partner of New Zealand, while New Zealand stands as the 38th biggest trade partner of Vietnam.
In 2022, two-way trade hit US$1.4 billion , up 5.7% from 2021. A year later, it dropped to US$1.3 billion, of which, Vietnam's exports to New Zealand reached US$648.9 million, down 7.1% annually, mostly mobile phones and components, computers, electronics and spare parts, seafood, cashew nuts, footwear. Its major imports from New Zealand consisted of milk and dairy products, fruits, wood, textile and footwear materials, leather and footwear, machinery, equipment, tools, spare parts, scrap iron and steel.
As of November 2023, New Zealand invested in 52 projects in Vietnam with a total registered capital of US$208.35 million, ranking 39th out of 143 countries and territories investing in Vietnam. They focused on real estate business, education and training, processing and manufacturing, agriculture, forestry and fisheries, administrative and support services, construction, among others.
In particular, New Zealand has committed to providing Vietnam with NZD26.7 million in non-refundable Official Development Assistance (ODA) from July 1, 2021 to July 30, 2024, focusing on agriculture, climate change adaptation, education and COVID-19 response.
Minister of Industry and Trade Nguyen Hong Dien said given their membership in various cooperative frameworks and their complementary economies, both Vietnam and New Zealand are actively pursuing deeper integration into the global economy. He said the two sides have agreed to work together to hold business and trade events, and share experience and information between their Government agencies and business communities to curb the reduction in trade.
At the recent meeting of the Vietnam-New Zealand Joint Economic and Trade Commission, Deputy Minister of Industry and Trade Phan Thi Thang proposed coordinated efforts to achieve the US$2 billion trade target set by their leaders, with a focus on trade and investment, hi-tech agriculture and agricultural trade, safe agricultural supply chains, labour, education and training, aviation tourism.
To capitalise on the available potential and opportunities for trade, the Vietnamese firms are advised to thoroughly study free trade agreements (FTAs) of which both countries are members, work out long-term strategies, follow stringent regulations and quality standards of the target market and actively join trade promotion activities like fairs and exhibitions to connect with potential partners and showcase their products.
