Lifting of administrative barriers should help Czech firms gain a better foothold in Vietnam

Czech firms should soon find it easier to get a foothold on the Vietnamese market: on Monday, on an official visit with his wife to the Czech Republic, President Truong Tan Sang confirmed that Vietnam will lift existing administrative barriers. Those hampered trade for Czech firms until now.

Truong Tan Sang, photo: CTK

A deepening of economic ties between the Czech Republic and Vietnam was the subject of a meeting between the Czech and Vietnamese president on Monday. Most analysts suggest Vietnam represents an increasingly important market for the Czech Republic. Now, trade between the countries, as Mr Zeman suggested on Monday, could reach new levels.

According to the most recent data, Czech exports to Vietnam in the first seven months of 2014 lagged heavily behind Vietnam’s here: Czech exports over that period were worth 1.1 billion crowns, dwarfed by imports from Vietnam worth more than 7.5 billion crowns. With barriers lifted, the Czech export number could improve – at least that is what firms hope. In the past, the Minister of Industry and Trade Jan Mládek outlined Vietnam’s importance.

“It is a country with a huge population in the field of agriculture which is beginning to industrialise. Industrialisation opens the door to great economic growth and major opportunities. When a farmer becomes an industrial worker he or she raises the standard of living, wages, GDP, and demand, for example, for what Czech industrial firms can offer.”

Michal Kozub, an analyst for the firm Home Credit, agrees the market is highly promising. He spoke to Czech Radio’s flagship station, Radiožurnál:

Hanoi, photo: Iostream01, CC BY 3.0 Unported

“Generally speaking Vietnam is a prospective market for the Czech Republic. This is a country of 90 million undergoing an economic boom. It makes sense that Czech export firms could benefit.”

He also pointed out that the country had long cooperated with Vietnam economically.

“Czechs have economic ties with Vietnam which go back to the 1950s. The most interesting area currently for the Czech export is probably heavy industry: that means industrial equipment. The greatest potential is probably in power plants, water purification plants and similar facilities.”

Vietnamese imports to the Czech Republic, meanwhile, include shoes, clothing, office equipment and electronic items, Czech Radio reported.