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PREPARED FOR Professor Dr. Abu Yousuf Md. Abdullah Course Instructor International Business Environment
PREPARED BY Tabassum Jahan RQ 59 Batch 18 Bachelor of Business Administration
Institute of Business Administration University of Dhaka November 12, 2012
The bilateral trade. Agreement on establishing the Joint Committee of economic. cultural. a jump of 241% compared to 2009 and US$482 million in 2011. 2012. Air Transport Agreement (1993). Agreement on double taxation avoidance (2004). Agricultural Cooperation Protocol (2004). a country which has much similarity with Bangladesh in terms of history. Economic and Scientific and Technological Cooperation Agreement (1994). Thus Bangladesh was the first South Asian and second Asian nation to establish relations with the provisional revolutionary government of South Vietnam at ambassadorial level in 1973. Both war. The four agreements are: Extension of the MoU between Bangladesh and Vietnam on cooperation in the field of agriculture signed earlier on March 22. Trade Agreement (1996). Both nations maintain good cooperation at international and regional levels. The two countries regularly cooperate at international forums. scientific and technological cooperation (1997). Bangladesh-Vietnam relations have been marked by several high level visits such the then Prime Minister Khaleda Zia's visit in 2005 and President Tran Duc Luong's in 2004. is progressing positively with an average growth rate of 20% per year. The countries have already signed off four agreements and MoUs (Memoranda of Understanding) during this visit. the Non-Aligned Movement (NAM) and ASEAN.INTRODUCTION Bangladesh has always had a warm regard for its South Asian neighbor Vietnam. and her meetings with the Vietnamese Prime Minister Nguyen Tan Dung has opened up new expectations and prospects centering the healthy political relation existing between the countries. Agreement on investment encouragement and protection (May 2005). The recent visit of Bangladeshi Prime Minister Sheikh Hasina to Hanoi. November 2-4. 2004 in Dhaka. including the UN. Vietnam supports Bangladesh’s bid to join ASEM (Asia Europe Meeting ). In the past. . Vietnam and Bangladesh achieved their independence through liberation war. It had reached US$280 million in 2010.ravaged countries had to go through an arduous process of rehabilitation of people and reconstruction of infrastructures including sea ports. Bangladesh and Vietnam had signed about a dozen bilateral agreements/MOUs on various issues but many of those have not been followed through. though modest. up 72% over 2010.
diplomacy. trade and investment. investment. the Non-Aligned Movement (NAM). economics. economy. the Asia-Europe Meeting (ASEM). Bangladesh has officially recognized the market economy status of Vietnam. trade. security. the two sides pledged to continue working closely at international forums such as the United Nations. Discussing regional and international issues of mutual concern. cultural and tourism. Cooperation on establishment of the Bangladesh-Vietnam Business Council and the VietnamBangladesh Business Council between the Federation of Bangladesh Chambers of Commerce & Industry and the Vietnam Chamber of Commerce and Industry. agriculture. and few other areas. which is very important to promote the potentiality of trade and ties between the two nations. security. the Greater Mekong Sub-region (GMS). while also further boosting bilateral ties in politics. Both the countries hope to gain significantly from the understandings as inferred from the quote by the Vietnamese Prime Minister. defense. . Trade promotion between the Vietnam Trade Promotion Agency under the ministry of industry and trade of Vietnam and the Export Promotion Bureau of Bangladesh. information and communication. An agreement between the ministry of agriculture and rural development of Vietnam and the ministry of fisheries and livestock of Bangladesh in the field of fisheries and livestock. "We've found directions for improvement of relations and cooperation between the two countries in politics." During this visit. Vietnam and Bangladesh aim to increase two-way trade to US$1 billion in the next five years. and the East – West Corridor (EWC).
raw materials for the clothing and shoe industries. Japan 10. cement.7%.5%. Singapore 4. Japan 10. tea. processed food.4%. rice. Germany 16. automobiles China 23. textiles.) machinery and equipment. seafood Export goods clothes. paper newsprint. jute and jute products. plastics. steel products. France 7. sugar . petroleum products. china and pottery Import goods Main import partners Mutual Export . telecommunications. rubber .3% (2012) machinery and equipment.2%. frozen fish and seafood. pepper. marine products.7%. leather.7%.8%. rubber. Thailand 6. poultry. shoes. ceramics. fisheries . carpets.7%. pharmaceuticals. Singapore 6%. India 12. China 9. electronic components and fertilizer Vietnam $3300 Main industries paddy rice. electronics. cashews. sugar cane. rattan. cloth. electronics. electronics. plastic products. fertilizer US 19. food processing.6%. jute. Taiwan 8.8%. wooden products. computers. ship repairing . agriculture apparel. South Korea 4.) rice. cement China 18. fish. crude oil. South Korea 11. pharmaceuticals. Malaysia 4.1%. tea. cotton. ceramics.3% (2010 est.7%. UK 9. machinery Main export partners US 20%. petroleum products. bananas. light engineering. garments and fabrics.9%. leather and leather products.A BRIEF GLANCE AT VIETNAM AGAINST BANGLADESH Bangladesh GDP per capita $1700 textiles and apparel. coffee. Japan 4% (2010) pharmaceuticals. chemicals. ships. cement. Netherlands 4. rubber. fertilizer. bamboo and sedge products. shipbuilding. soybeans.9% (2010 est. peanuts. iron and steel.8%. foodstuffs.
In the year 2010-11 Bangladesh exported Jute product to the world market worth of US$ 1. Leather Sector .In view of the gradual widening of supply gap and pursuant to the policy of privatization the Government has recently opened the energy sector to private investment under Independent Power Producer (IPP) or PPP project. FDI in this sector along with the production of tanning chemicals stand to be highly rewarding. Bangladesh’s market has many opportunities for Vietnamese enterprises in the fields of footwear. Through these SEZs.POTENTIALS The relationship between Vietnam and Bangladesh governments has been perceived to grow. The key investment sectors include: Jute goods .the fastest growing industry in Bangladesh along with RMG significantly contributing towards exports. Entrepreneurs from Hong Kong. In particular.Presently Bangladesh produces between 2-3% of the world’s leather market. Frozen Foods Sector . Japan and Korea have taken advantage of Bangladesh’s cheap and easily trainable labor and its infrastructure facilities to manufacture products for the export market. textiles and ceramics. the cooperation in the field of trade and economic investment in the two countries has been focused on and highly assessed. Investors can also invest in the planned 7 Special Economic Zones (SEZ) under Public Private Partnership (PPP) or 100% privately owned SEZs. In the year 2010-11. This should attract Vietnamese venture capitalists and investments in budding sectors of the country like ship-building and IT. agricultural foods. investors can target both the local market and export market. Energy (Power Generation and Transmission) . In addition. Bangladesh is a big market in the South Asian region with a large population and a high consumption power. the country earned US$ 953. Government is in the process of setting up of separate Leather Zone relocating the existing industry sites to a well-organized place. Bangladesh is best placed in the region for textiles and garments because of available labor and trade status with the EU and USA. . contributing to actively promote the bilateral relationship between Vietnam and Bangladesh. Textiles Sector (Specialized and Home Textile) .31 million by exporting specialized and home textile products. Vietnam can do the same. Light Engineering Sector (LES) .Export-oriented production in light industries as gained momentum in the past few years.Investment in frozen food sector with new technology and equipment has a vast potential for growth.114 billion.
Vietnamese businesses can hire workers from Bangladesh. Bangladesh has been received the shift of facilities and factories from other countries due to the relatively cheap labor and other costs. Floriculture can also be developed. etc. such as textiles and shipbuilding. . spices now grown in Bangladesh could feed agro-processing. Bangladesh can use Vietnamese expertise in certain sectors to further develop the home industries. Electrical goods. Vietnamese businesses in the fields of agricultural engineering and agricultural industrialization can also consider the investment in Bangladesh to serve local needs. Although Vietnam and Bangladesh have many similarities in the structure of exports. Bangladesh could import knowledge from Vietnamese domestic engineers in this sector.Major scope for increased cultivation of vegetables. When cooperating. tropical fruits. In addition. Agro-based Industries . Vietnam has advantages of commodities that Bangladesh’s market needs to import as well as the industries that the Bangladesh has attracted investment.Vietnam is currently developing itself in electrical goods production with the help of international brands like Canon. the two countries still have many areas and sectors that can complement each other.
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