Vietnam-Poland trade not meeting potential

09:04 | 12/01/2019 MUTRAP Corner

(VEN) - Poland is the largest market in Eastern Europe with high demand for textiles, garments, agricultural products and seafood. However, Vietnam has yet to penetrate this potential market despite its advantages in these products.

vietnam poland trade not meeting potential

The largest market in Eastern Europe

With a population of more than 38 million and annual per capita income of US$24,000, Poland is the largest market in Eastern Europe and one of Vietnam’s leading trading partners. Trade between the two countries reached US$1 billion in 2017 and is forecast to exceed this result in 2018.

From 2010-2017, Vietnamese exports to Poland grew continuously at an average rate of 27 percent per year and reached US$775.74 million in 2017, up 29.8 percent compared with 2016. Vietnam exported mostly textiles and garments, iron and steel, coffee, computers and components, machinery, equipment and spare parts.

Poland has high demand for imported textiles, garments, rice, cooking oil, farm produce and seafood. It spends about US$2 billion on seafood imports annually.

According to Piotr Harasimowicz, chief representative officer of the Polish Investment and Trade Agency in Ho Chi Minh City, Poland is a major rice importer but does not buy Vietnamese rice. Poland also has high demand for fruit, farm produce and cooking oil, but Vietnamese companies have not taken advantage of this opportunity to promote exports.

Increasing linkages

Geographical distance is a major factor restricting Vietnamese business interest in the Polish market. Moreover, Polish companies want to negotiate directly with Vietnamese businesses and require the presence of their agents, distributors or representative offices in Poland.

Nguyen Quoc Dien, Marketing Director of the Ben Nghe Port Company Limited, said the availability of direct flights between Vietnam and Poland, as well as favorable conditions for marine transport between the two countries, in particular, and Europe, in general, are expected to facilitate trade.

The Vietnam Food Industries Joint Stock Company (VIFON) has successfully exported instant noodles to Poland, holding a market share of 29.26 percent. A representative of the company said that good quality and diverse packaging is the key to its success.

Piotr Harasimowicz suggested that in order to increase Vietnamese exports to Poland, companies in both countries must form more linkages to seek information about each other’s markets.

To increase the presence of Vietnamese goods in Poland, domestic companies need to seek information about this

market, while at the same time ensuring product quality and developing their agent and distribution networks in

Poland.

Thanh Thanh & Mai Ca