Malaysia: Promising market for Vietnamese goods

06:00 | 18/08/2020 Cooperation

(VEN) - Despite the ongoing Covid-19 complications affecting trading activities of domestic companies, Malaysia is considered a suitable export market.

malaysia promising market for vietnamese goods
Vietnam has surpassed Thailand to become Malaysia’s top rice supplier

In 2016, Malaysia surpassed Singapore to become Vietnam’s second largest trading partner in ASEAN, ranking behind Thailand. In 2019, trade between Vietnam and Malaysia exceeded US$11 billion, accounting for 19 percent of Vietnam’s trade value with ASEAN countries.

According to Raphy Md. Radzi, Trade Commissioner at the Consulate General of Malaysia Trade Section (Matrade) in Ho Chi Minh City, Malaysia is a fast-growing market economy, ranking 33rd among economies worldwide, third in Southeast Asia and 12th in Asia. The average per capita income is US$11,200. Malaysia has very high demand for agricultural products in which Vietnam holds a significant advantage, such as rice, fruit, vegetables, seafood and pepper. It is also a major importer of textiles, garments, footwear, and office furniture.

Nguyen Tuan, Deputy Director of the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), said ITPC is intensifying trade promotion activities and encouraging Vietnamese companies to boost exports to neighboring markets, including Malaysia.

Luong Nha Hien, Director of the Beyond World Company Limited, said Malaysia is a major rice importer, with annual demand ranging from 900,000 to one million tonnes. In 2019, Vietnam surpassed Thailand to become Malaysia’s largest rice supplier, with value reaching US$218.8 million, accounting for 5.8 percent of the total value of Vietnam’s exports to this market.

Malaysia is a multi-ethnic and multi-religious country with Muslims accounting for more than 60 percent of its population. Therefore, exports to this market, especially farm produce, must meet Halal standards in addition to international trade requirements. Halal certifications enable Vietnamese companies to not only promote exports to Malaysia but also join supply chains to exploit the markets of most Muslim countries, Raphy Md. Radzi said.

The Vietnam Market in Kuala Lumpur offers favorable conditions for Vietnamese goods to enter the Malaysian market. The market covers six floors in the 24-storey Safuan Plaza in the center of Kuala Lumpur. It consists of 200 booths selling a variety of Vietnamese goods such as agricultural products, seafood, handicrafts, textiles, garments, machinery and cosmetics.

Dato Theng Bee Han, President of the Malaysia Business Chamber: Vietnam and Malaysia are members of the ASEAN Economic Community and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), providing them with opportunities to promote business cooperation and trade.

Ngoc Thao