Pakistan and Vietnam is going to discuss the prospects of a Free Trade Agreement (FTA) between the two countries next month. Both countries will also discuss the FTA in forth coming Pak-Vietnam Joint Trade Commission (JTC) scheduled to be held in Hanoi by the end of July 2011.
From Pakistan’s side the Ministry of Commerce will lead the official delegation in the meeting while its counter part, the Ministry of Industry and Trade, would represent the foreign country, sources told Pakistan Today.
According to sources a business delegation led by Trade Development Authority of Pakistan (TDAP) is also going to visit the fast growing country which has almost surpassed export target of $58 billion last year.
Though, numbers of Memorandum of Understandings (MoUs) have already been signed between the two countries, the FTA would be a major development if the required consensus were made by both sides.
During their visit the business delegation, which would be followed by the Secretary Commerce and other concerned officials, is expected to sign an MoU between TDAP and Vietnam Trade Promotion Agency (VIETRADE) to facilitate bilateral trade. Almost nine agreements and MoUs have already been signed between the two countries.
Being an important member of Association of South East Asian Nation (ASEAN), the market access in Vietnam is also a big opportunity to indirectly enter the huge market of the ASEAN states while helping the already on going negotiations between Pakistan and ASEAN for a FTA, sources said.
Besides the JTC the two countries also have a Joint Ministerial Commission (JMC) which is held regularly to resolve various trade related issues. In the earlier meeting of Pak-Vietnam JMC, which was held in Islamabad, a Joint Working Group on Agriculture, Livestock and Fisheries was made to work out an action plan for cooperation in these three areas. The technical experts also discussed trade opportunities in different fields like banking, agriculture, livestock, fisheries, telecommunications, information technology, education and culture.
Both sides also agreed for joint collaborative research in public health, pharmaceuticals, development of laboratory diagnostic kits, organizing short term training courses and collaboration between the drug regulatory authorities to enhance volume of exports of pharmaceuticals from Pakistan to Vietnam.
They also agreed to encourage concerned authorities and private sector organizations to have closer contacts with a view to further strengthening bilateral cooperation. Both sides further agreed to hold meeting of the third session of JMC in Hanoi in 2012.
The bilateral trade volume is yet to cross $200 million and consists of export of cotton, cotton-waste, leather, pepper and black-tea, etc., from Vietnam. However, experts say that growth in bilateral trade was significant as trade volume increased from $10 million in 1999 to $149.8 million in 2008 and $183 million in 2009. Vietnam’s market also has good potential for Pakistani products like auto parts, pharmaceutical products, man-made filaments, knit fabrics, plastic products, fish, dairy products, surgical instruments, distillation products and handicrafts. Both countries, being agricultural economies, can also collaborate in agricultural implements share their experience.
