Vietnam and Mozambique have signed many agreements on investment commitments in almost all sectors, including agriculture. One important area of cooperation that the Mozambique business community wants to boost cooperation in the coming time is the agricultural sector, with a focus on cashew.
Recently at the Melia Hotel there was a round table discussion between Mozambique’s government agencies and Vietnamese businesses. Assessing the potential and opportunities for cooperation in the coming time, Dr Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), said: “Vietnam has participated in many bilateral and multilateral free trade agreements and holds membership in many trade organisations, this is the basis for both sides to expand cooperation further in the future, through which Vietnam will be the bridge for Mozambique to access other markets such as Southeast Asia and Asia.
Mozambique’s Deputy Minister of Foreign Affairs said the Mozambique government’s five-year plan identified four key areas of development: agriculture, tourism, energy and infrastructure development. Currently, Mozambique is paying particular attention to facilitate foreign investors, including Vietnamese investors, to invest and do business in Mozambique.
Deputy Minister of Foreign Affairs of Mozambique expressed her hope that Vietnamese businesses would boost their investment in agriculture and tourism, as well as their desire to encourage Vietnamese businesses to invest in Mozambique. The two countries have signed an agreement on investment protection and double taxation avoidance. At the same time, the Mozambique government has also applied preferential incentives to Vietnamese enterprises, such as import duty exemption on machinery for investment projects, reduction of import taxes on materials for manufacturing, and preferential treatment of land for Vietnamese enterprises investing in the country.
Promoting cashew cooperation
In addition, Mr Giang shared the current difficulties faced by the Vietnam Cashew Association when conducting business in Mozambique. Specifically, “Vietnam Cashew Association is not directly connected to the Mozambique Association of Cashew, so trading is conducted through intermediaries from India or Singapore. In addition, language is a major barrier when Mozambique uses mostly Portuguese, which is not as common as English.
Other difficulties pointed out by the business community when doing business with Mozambique are the payment system, inflation and policies.
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