Full market-economy status: Vietnam, Pakistan sign MoU

August 30, 2012

RECORDER REPORT

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Pakistan and Vietnam, on Wednesday, signed a Memorandum of Understan-ding (MoU), according to which Islamabad accepted the latter as a full market economy. The Federal Cabinet, headed by former Prime Minister, Syed Yousaf Raza Gilani had approved a proposal regarding the granting of status of a full market economy.

The second session of the Joint Trade Commission (JTC) between Pakistan and Vietnam was held in Islamabad on the 28-29 August, 2012. Pakistan's delegation was led by Tahir Raza Naqvi Chief Executive Trade Development Authority of Pakistan (TDAP), while the Vietnamese delegation was led by Le Duong Quang Deputy Minister of the Ministry of Industry and Trade of Vietnam.

The JTC deliberated on measures to enhance and promote bilateral trade between the two countries, including the simplification of the visa procedures for businessmen, exchange of trade and commercial information between the trade promotion agencies and institutionalising co-operation among the state trading corporations of both the countries. The Vietnamese side gave the assurance that the Ministry of Industry and Trade of Vietnam would facilitate Pakistani businessmen in getting visas. Vietnam also assured Pakistan to consider waiving the requirements of a Vietnamese sponsor. However, for the time being, if Pakistani businessmen do not have a sponsor in Vietnam, the Commercial Section of Vietnam in Karachi would forward the case to the Ministry of Industry and Trade, Vietnam. If the Ministry were satisfied, it would become the sponsor for Pakistani businessmen.

During the meeting, an MoU was signed wherein Pakistan recognised Vietnam as a Full Market Economy. Vietnam assured Pakistan of its full support in its bid to become the full dialogue partner of the ASEAN. A target of $500 million bilateral trade was set, which was to be achieved by December 2013. The selected product sectors for special promotional measures included leather and leather products, pharmaceuticals and sea foods from the Pakistan side, while the Vietnam authorities would launch a promotional campaign to increase the export of tea, cotton and synthetic fiber and fisheries to Pakistan. The agreed roadmap to work closely for enhanced trade in the specified sectors includes exchange of delegations, participation in fairs/exhibitions, sharing of information on quality standards and trade procedures between the two sides.

The Vietnamese businessmen were invited to participate in the forthcoming Expo Pakistan 2012. TDAP Chief Executive assured that full co-operation would be extended to the business group of Vietnam intending to participate in the Expo Pakistan. Later, the Vietnamese delegation led by Mr Le Duong Quang Deputy Minister of the Ministry of Industry and Trade of Vietnam met senior Commerce Minister Makhdoom Amin Fahim in his office. Both sides discussed the different aspects of trade relations between the two countries. It was reported that the existing trade volume was far below the potential.