Vietnamese investments in Sri Lanka:

‘Opportunities exist in thrust sectors’

“There are opportunities for Vietnamese investments in Sri Lanka in the thrust sectors such as manufacture of agricultural machinery and agro processing, plastic products, fisheries, infrastructure and tourism.

Addressing members of the visiting the 40 member high powered Vietnamese business delegation at Hotel Galadari, Colombo, Industry and Commerce Minister, Rishad Bathiudeen said that the Indo Lanka and Pakistan Free Trade Agreements that are now in force, offer the potential for Vietnamese investors to use Sri Lanka as a base to penetrate these two promising markets.

“Sri Lanka is also keen to strengthen industrial ties with Vietnam and use it as a springboard to reach the far eastern markets by leveraging the various resources, and also lower manufacturing costs that Vietnam offers. For example, the Vietnam garments industry could synergise with Sri Lanka for international mutual gains. Vietnam and Sri Lanka can jointly produce garments by combining chains of production.

I am pleased to mention that some Sri Lankan companies have already established operations in Vietnam in various sectors.

“We have also identified the opportunities for Sri Lanka in Vietnam for the promotion of intermediate goods for construction, hotel industry, tea industry and garment industry.

Sri Lanka also can offer consultancy/professional services in the fields of engineering, architecture, construction, hotel management and business management” Minister Bathiudeen said and added “I warmly invite Vietnam business and industry delegations to Sri Lanka Expo 2012, the premier international trade fair organized by Sri Lanka Export Development Board which will be held from March 28 to 30, 2012 at the BMICH in Colombo.”

The total trade between Sri Lanka and Vietnam amounted to US $ 65 million in 2010. Sri Lanka’s total exports to Vietnam stood at US $ 21 million in 2010 while imports from Vietnam were at the value of US $ 44 million.

Natural rubber was the main item of import from Vietnam representing 23 percent of the total imports. Other main imports are yarn and tractors, he said.