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Vietnam achieves an export surplus to the Czech Republic despite modest bilateral trade PDF Print
Monday, 02 October 2017 15:31

VIETRADE - The Czech Republic has been identified as a potential market for Vietnamese exports. Given the modest trade between the two countries, Vietnam still has a trade surplus with the Czech Republic.


Analyzing the local market for Vietnamese exports, experts say, the Czech Republic is not only a consumption market, but it also serves as a bridge for Vietnamese goods to be widely spread to Eastern or even to Western Europe. This is because it is located in Eastern Europe with a road network and bonded warehouse system assessed to be the best in the region.


In addition, Czech is among strategic export markets of Vietnam in the period of 2010 – 2020 while Vietnam is also considered one of the leading potential markets of this country. To date, Vietnam and the Czech Republic have signed several cooperation agreements, including the Double Taxation Avoidance Agreement, the Investment Promotion and Protection Agreement, the Air Transport Agreement, etc. This has created a solid legal corridor for businesses in the two countries to promote cooperation and exploit each other's markets.


Despite the advantages, bilateral trade between Vietnam and the Czech Republic remains low. According to the statistics of the General Department of Customs, in the first three months of 2017, two-way trade between the two countries reached US$ 54 million. In which, the export turnover of Vietnam to Czech accounted for nearly US$ 36 million. Thus, in the first quarter of 2017, Vietnam had an export surplus of nearly US$ 18 million to the Czech Republic.


The main export items of our country to the Czech Republic in the first three months of this year included footwear of all kinds, machinery, equipment, tools and spare parts, computers, electronic products and components, etc. Vietnam, in turn, imported a variety of goods from the Czech Republic, including machinery, equipment, spare parts, computers, electronic products and components, and steel products, etc.


According to experts, one of the reasons why Vietnam- Czech trade turnover remains modest is that the two countries' businesses do not have enough information on each other's policies and investment environment.


Experts said that in order for Vietnamese goods to be successfully exported to the Czech market and to retain their foothold in this market, Vietnamese enterprises should carefully study market demand as well as learn customs, practices and business culture of this market. At the same time, Vietnamese enterprises should also grasp relevant Czech policies and laws.


Particularly, Vietnamese businesses need to actively explore the Europe – Vietnam Free Trade Agreement (EVFTA) of which the Czech Republic is a member, in order to make use of the advantages offered by the FTA. Negotiations on EVFTA have ended, the Agreement is about to be signed and is expected to come into force in early 2018. Then, the agreement will open huge market potentials, with 99% of tariff lines being reduced to 0%. This is a favorable opportunity for Vietnam's exports to penetrate more deeply into the EU market in general and the Czech market in particular.


According to experts, Vietnamese businesses should actively seek access to the Czech market by participating in exhibitions, fairs and trade promotion programs to the Czech as well as the Eastern European markets. In addition, Vietnamese enterprises can make use of the Vietnamese Business Association in the Czech Republic as a useful bridge for the consumption of goods, because the Association has relationships with many enterprises in the two nations.

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