trade

Additional Asian Alliance

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Turkey and Vietnam Need to Join Forces

It seems that if there was greater cooperation between Vietnam and Turkey, the economy climates of both countries would greatly benefit. According to an article in the Vietnam News, they need to get on to this though and start making real efforts so that they will thrive. This is the case for many areas such as: “economics, education and training, [and] science and technology.” It was just two days ago that Nguyen Tan Dung, the Prime Minister of Vietnam, spoke about this in a statement in which he “received outgoing Turkish Ambassador Ates Oktem in Ha Noi.” He had been impressed with the Ambassador’s efforts in his time in office which helped “develop the Vietnam-Turkish friendship and co-operation.”

Better Buddies

Although there is still a way to go, things have for sure improved between Turkey and Vietnam in the last few years. For example, just last year, trading between the two countries reached US$850m. At the moment, Turkey and Vietnam are in the process of signing an “investment encouragement and double taxation avoidance agreements.” It is anticipated that these will really give a jumpstart to economic cooperation and partnerships between the two countries.

Put Differences Aside

It is true that there has been tension between the two countries over the years. But imagine what would happen if these were totally put to one side? As it is business between Turkey and Vietnam is booming and got to almost $1bn last year, even with the current political instability. There has been a steady increase of trade between the two countries over the last few years “from almost nothing to $857m in 2010.” In 2002, this figure was just a little more than $100m.

It is Turkey that is vehement in trying to improve relations with Vietnam and working hard towards this goal. It intends to “appoint a trade counselor” to its Hanoi embassy. Vietnam is home to around 86 million people and is the world’s 13th biggest population. So it’s worth everyone working closely with Vietnam, but especially Turkey.

Thailand Cambodian Trade News

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Border Clashes Negatively Impact Trade

There’s going to be trouble with the Asian economy, and a lot of it. That’s if the situation between Thailand and Cambodia continues. Currently the border clashes there are so detrimental to good sentiments between the two countries, that even though trade is developing, without an end to these clashes, the market share of Thailand goods in Cambodia will be reduced.

According to Kasikorn Research Center (KRC), what will happen is that Thai exporters and potential business investors will lose confidence in placing their businesses in Cambodia. In addition, other countries will start putting pressure on them to take business elsewhere, especially Vietnam.

Good Trading Between Thailand and Cambodia

But it would be a real shame if things went sour. Investment between Thailand and Cambodia has been increasing continuously over the last few years from $1.4bn in 2007 to $2.5bn in 2010. Thailand has been benefitting from this vis-à-vis trade. In addition, trade between the two countries accounts for at least 70 percent of overall trade – that is a huge amount that would be devastating for both places if it things stopped going well.

It’s not all been great news though. In March 2011 there was only a slight increase in export volume. Also, due to border clashes, there was a drop from 34.9 percent in 2008 to 29.9 percent in 2009. There was a large plummet of Thai investment in Cambodia from the 2008 figure of $30.7m to the 2010 figure of $1m.

Vietnam-Cambodia Trade Figures

Consequently there was additional merchandise from Vietnam to the Cambodian market with an increase of 19.5 percent in 2008 to 23.7 percent in 2009. But Vietnamese exports to Cambodia also increased in 2010 by a significant 35.3 percent, culminating in $1.5bn. But anyway Vietnam ranks as Cambodia’s largest investor with “an accumulated investment value of around $49.5m. Thailand comes in second at $47.2m, and Singapore in third place at $24.9m.

So there is work to be done. It would clearly be a huge economic shame if the political situation between Thailand and Cambodia wasn’t resolved – and fast.