Vietnam has shown interest in doing more Trade with Malaysia such as
importing more palm oil in exchange for riceZAIDI ISHAM ISMAIL
MALAYSIA and Vietnam have agreed to further cooperate to improve trade via barter trading
of palm oil for rice, rubber, crude oil, coffee, fish or other raw materials.
Deputy Primary Industries minister Datuk Anifah Aman said trade between
the two countries is relatively small, and there still lies potential for the two
countries to improve the situation.
Vietnam has shown interest doing more trade with Malaysia such as
importing more palm oil in exchange for rice,” Anifah told reporter after
meeting visiting Vietnam First Trade Minister Mai Van Dau in Kuala Lumpur yesterday.
Van Dau was leading an eight-member trade delegation comprising officials
from both Vietnam's public and private sectors.
Asked how much palm oil will be involved in the barter trade, Anifah said
the details will have to be worked out by officials from both countries.
"Vietnam's oils and fats consumption has grown over the years, of
which 50 percent is palm oil," he added. Vietnam 1998, produced some 250,000 tonnes
of palm oil.
Anifah also said currently, there are two Malaysian companies operating in
Vietnam. They are the Kwok Group and Golden Hope Plantations Bhd.
"This collaboration clearly shows Malaysia's commitment in working
closely with Vietnam in promoting palm oil," Anifah said.
On bilateral cooperation in commodity production and investments, he said
Malaysia is keen to share its experience and expertise with Asian countries.
On December 8 last year Vietnam and Malaysia had signed a barter trade
agreement in Hanoi to facilitate barter trade between the two countries.
The agreement was signed between Vietnam’s national company for
vegetable oils and cosmetics, Vocarimex and another company, Vinafood II. Malaysia was
represented by Padiberas National Bhd.
Under the agreement, Vietnam is expected to supply Malaysia between
140,000 tonnes and 250,000 tonnes of rice this year in exchange for palm oil and other
agricultural products.
Vietnam is the world’s second largest producer of rice after
Thailand, producing around four million tones of rice annually. Malaysia last year
imported 140,000 tonnes of rice from Vietnam.
In 1985, a joint commission was established to facilitate the promotion of
bilateral cooperation between Malaysia and Vietnam during its inaugural meeting in Kuala
Lumpur.
The second meeting was successfully held in Hanoi in 1996 with the third
meeting scheduled to be held this year in Kuala Lumpur.
For the first 10 months of last year total trade between the two countries
was valued at US$639 million (US$I = RM3.80).
Malaysia's exports to Vietnam registered a value of US$315 million while
imports from Vietnam amounted to US$325 million.
Malaysia's major items of export to Vietnam are palm oil, computer
components, machinery parts, pharmaceutical products, motorcycle parts, fertilizers and
motor vehicles.
The main imports from Vietnam include crude oil, rice, garment and
textile, seafood, rubber, coffee, footwear, agricultural products and tea.
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