Algeria’s restrictive import policies impact Vietnamese businesses

The list of goods prohibited from import to Algeria in 2018 includes edibles such as dry fruit, finished cheese, fresh fruit (except bananas), fresh vegetables (except garlic), meat (with exceptions), tuna, corn products, processed meat products, chewing gum, candy and chocolate, spaghetti, sweet cakes, cereal products, canned vegetables, processed tomatoes, and mineral water etc.

Also to be forbidden from import are household utensils, construction materials, detergent, finished and semi-finished plastic products, marble and granite, ceramics, toilet paper, wooden products, chandeliers, and mobile phones.

Algerian Prime Minister Ahmed Ouyahia says the import ban is not in contradiction of the agreements Algeria has signed with the EU and other foreign partners. The move aims to protect local businesses from international competitors and prevent the ‘drain of foreign currencies’, which has affected the foreign exchange reserves of the North African nation, he notes.

According to Vietnam’s trade counselor in Algeria Hoan Duc Nhuan, this new policy will have a detrimental effect on Vietnamese exports such as mobile phones, biscuits and candy, cereal products, fruit and vegetables, steel and iron products, ceramics, and construction stone.

The General Department of Vietnam Customs reports that Vietnam’s 11-month export turnover to Algeria surged by 9.3% from last year to US$264 million.

Most notably, coffee exports earned US$103.2 million, down 20% in quantity and up 1% in value, trailed by mobile phones at US$62 million,  and rice at US$15.74 million. Vietnam’s import turnover from the market is estimated to hit US$6 million in 2017.

Vietnam’s export turnover to Algeria has seen a downward trend since the Algerian government implemented tighter import measures requiring licenses for 24 products as of June 2017 (including mobile phones) and banned imports of enameled tiles and wood products.