08:39 | 01/07/2015 Cooperation
(VEN) - Vietnamese businesses have a great opportunity to boost cooperation in investment, industry and trade with their Algerian counterparts.
Photo: Can Dung
Prime Minister Nguyen Tan Dung paid an official visit to Algeria in early June, which has opened up new opportunities for businesses in both countries to strengthen trade and investment ties.
A joint-venture company between the Vietnam Oil and Gas Group and its Algerian counterpart recently received its first investment flow into the Bir Sebaar oil field, which could boast reserves of 150 million tonnes, or one billion oil barrels. The Vietnamese side expects to earn US$100-150 million annually from this well through its 40 percent stake. In addition, Vietnamese agricultural businesses are set to use 20,000-30,000ha of land for rice cultivation and livestock breeding in Algeria.
The Algerians expressed their hopes that Vietnamese construction, textile, footwear, food processing, telecommunications, chemicals, mining and fertilizer firms would invest in Algeria.
However, there are challenges for investors in Algeria, including the distance, fewer investment incentives and high corporate taxes. However, the Algerians were keen to prioritize cooperation in several fields including garments and textile and telecommunications, said Minister of Planning and Investment Bui Quang Vinh.
To seize these opportunities, Vietnam and Algeria need to set up a joint-venture bank and two-way flights to facilitate trade, tourism and cultural exchanges, said Chairman of the Algeria-Vietnam Friendship Association Tayeb Cherfaoui.
According to the Ministry of Industry and Trade, Algeria-Vietnam bilateral trade value reached nearly US$250 million last year, with Vietnam recording a nearly 100 percent trade surplus from exporting coffee, rice, phones and accessories. In the first five months of the year, Vietnam export nearly US$118 million worth of goods to Algeria.