Vietnam's Trade Ministry has urged exporters to strategically prepare for a stronger foothold in the Chinese market as most Vietnamese exports to China will enjoy zero tariff next year under the Early Harvest Program signed by China and the Association of Southeast Asian Nations (ASEAN).

Many of Vietnam's enterprises are already aiming to increase their exports, especially rubber, footwear and seafood, to China, local newspaper Vietnam News reported Tuesday.

Chinese consumers' demand, taste and technical requirements for goods are similar to those of Vietnamese people, so it would be easier for Vietnam's exports to penetrate the market, said Tran Thi Kim Loan, deputy manager of the Vietnamese footwear maker Biti's.

Biti's exports low-cost, durable products to China, she said, noting that besides the long-established market of Yunnan province, her company is expanding export to Chinese cities, including Beijing.

The Seafood Export and Trade Company in Vietnam's southern Ho Chi Minh City is also expanding activities in the Chinese market. "Low transport freights and a large market will create more opportunities for Vietnamese enterprises to push up exports in the future," said the company's director Nguyen Thanh Son.

However, lack of advertising, regulations, and policies for exports in China is complicating the expansion. The two countries' legal frameworks regarding transaction and payment process are not compatible, the report said.

China and the ASEAN, which groups Vietnam, Thailand, Indonesia, Malaysia, Singapore, Brunei, Myanmar, Laos, Cambodia and the Philippines, have seen remarkable improvements in trade and investment in recent years. In 2004, the two-way trade was over 100 billion dollars, more than doubling the figure in 2000.

The two-way trade of China and Vietnam stood at more than 6.7 billion dollars last year. They are expected to realize their trade target of 10 billion dollars set for 2010 a couple of years ahead of schedule.

Source: Xinhua