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Iran, Vietnam stress need to start negotiation on signing a PTA

Tehran Times | 31 August 2022

Iran, Vietnam stress need to start negotiation on signing a PTA

TEHRAN – In a meeting between Head of Iran’s Trade Promotion Organization (TPO) Alireza Peyman-Pak and Vietnam’s Ambassador to Tehran Luong Quoc Huy on Tuesday, the two sides stressed the need to begin official negotiations for signing a preferential trade agreement (PTA) between the two countries, the TPO portal reported.

“An important measure for increasing trade between the two countries is to start negotiations for signing a preferential trade agreement; Such an agreement is underway with Indonesia and we hope that with the necessary follow-ups, it will also be signed and implemented between Iran and Vietnam,” Peyman-Pak said at the meeting.

The TPO head pointed out that his meeting with Luong Quoc Huy could be a prelude to expanding cooperation between Iran and Vietnam, saying: “The value of trade between the two countries is currently $120 million, which is not an acceptable figure and should be increased in the future with the development of cooperation.”

Pointing out that the low volume of trade between the two sides has various reasons that should be identified and resolved, the official added: “Currently, the businessmen of the two countries do not have sufficient knowledge of each other’s capacities and effective measures and planning should be done in this regard so that we can improve the space for the development of trade between the two sides.”

The TPO head emphasized that the trade between the two countries should increase at least to two billion dollars and continued: “The first step in this direction is to hold a joint economic committee meeting to activate previously reached agreements because four years have passed since the last meeting of the two countries’ Joint Economic Committee was held.”

It is necessary to hold coordination meetings in this regard as soon as possible, Peyman-Pak stressed.

He pointed to exchanging trade delegations between the two countries as the second step toward improving mutual trade relations and said: “If these exchanges are planned and carried out in a coherent and logical manner, favorable trade agreements will be concluded between the parties.”

Referring to the fact that delegations can be exchanged concurrently with holding various exhibitions in both countries, Peyman-Pak emphasized that an agreement should be signed with corresponding entities in Vietnam to manage such affairs.

The head of Iran’s Trade Promotion Organization further pointed to the establishment of a barter trade mechanism between the two countries as another important measure that could be taken for the development and expansion of mutual commercial cooperation, saying: “There are products in both countries that are needed by the other side, and with a barter trade mechanism, such products can be exchanged easily, leading to more exports for both sides.”

Further in the talks, Luong Quoc Huy, in his turn, welcomed the ideas and suggestions offered by Peyman-Pak and emphasized that the implementation of the mentioned agreements would play a direct role in the development of economic cooperation between the two countries.

He went on to point out that in the first seven months of 2022 and after the end of the Covid-19 pandemic, all business and production fields of Vietnam have returned to normal operation, adding: “The country’s economic situation has stabilized and inflation is under control; Currently, Vietnam’s trade balance with other countries stands at $431 billion and the country has a great potential to have economic cooperation with Iran as well.”

The ambassador mentioned Iran as Vietnam’s biggest trade partner in West, South East, and East Asia and considered the Islamic Republic as a gateway for the export of Vietnamese products to Europe.

 source: Tehran Times