Kuwait is Vietnam's leading trading partner in the Middle East, but this is also a market with many competitors for many potential Vietnamese products...

The Vietnam Trade Office in Kuwait said that Kuwait continues to be the largest trade partner in the Middle East and one of Vietnam's leading trade partners with two-way trade turnover reaching nearly 6 billion USD in 2023.

MANY COMPETITORS

This is a potential market for Vietnamese goods, typically agricultural products, seafood, wooden products, etc. In particular, Kuwait's agricultural sector is not developed because 82% of the area is desert. Therefore, Vietnamese agricultural products have a lot of potential in this market.

However, in Kuwait, Vietnam has many competitors in garments, wooden products, fruits, vegetables, tea, coffee, cashew nuts, spices, rice, etc. For each group of products, we have a number of different competitors.

The main ones are still India and China. China has been Kuwait's largest export partner for many years, from agricultural products, industry to services, telecommunications, construction, labor, tourism, etc. In which, the main competition is still quantity and price.

The quality of Chinese goods is not highly appreciated in Kuwait but is acceptable. China will continue to hold the No. 1 export position to Kuwait for many years to come, with increasing export value.

India has many products that directly compete with Vietnam and is among the top 10 largest trading partners of Kuwait. On the other hand, the Indian labor force is present in both simple and high-level labor positions, from trade to engineering, finance, banking, etc.

In particular, the large number of businessmen, intermediary managers, information holders, and great influence on the purchase and sale of goods and prices are mostly held by Indians.

In addition, the supermarket system (owned by an Indian) LuLu Hypermarket here is constantly growing, competing fiercely and gradually dominating the retail market here.

The Vietnam Trade Office in Kuwait stated that in fact, the export products with strengths of Vietnam do not account for a high proportion in Kuwait. Therefore, there is still much room to promote exports.

However, Vietnamese goods always face fierce competition from countries such as India, China, Thailand, etc. that have the same export products to Kuwait.

"Therefore, Vietnam really needs the commercial presence of direct enterprises in Kuwait in order to hope to promote the market faster, stronger and more sustainably", the Vietnam Trade Office in Kuwait emphasized.

PRIORITIZE TRADE PROMOTION

In the coming time, the Ministry of Industry and Trade believes that agricultural products and food will continue to be items that need to be promoted because there is still room for Vietnam to export this group of products to Kuwait.

Government agencies need to continue to prioritize organizing national trade promotion programs in countries in the GCC region (the Gulf Cooperation Council includes 6 Gulf countries: Saudi Arabia, UAE, Qatar, Kuwait, Bahrain and Oman) in general and in Kuwait in particular.

Support small and medium-sized enterprises to have the conditions to survey, trade and promote their brands abroad, contributing to making the GCC market one of Vietnam's important trade partners.

Kuwaiti traders in particular and the GCC in general tend to like to experience goods directly, so offering samples directly or promoting through trade fairs and exhibitions is a very effective way in Kuwait.

For localities, associations and businesses, the Trade Office recommends that businesses trading with the GCC market in general and Kuwait in particular need to build trust with customers, because in fact, businesses in the GCC region have great financial potential, and they prefer payments based on trust.

Enterprises need to actively and proactively survey the market, participate in trade fairs and exhibitions in countries in the region to directly meet partners and customers.

At the same time, it is necessary to proactively seek partners or offer products through participating in trade fairs, exhibitions and seminars held in Vietnam or GCC countries (concentrated in UAE, Saudi Arabia, Kuwait), through the Trade Office or Embassy of Vietnam in this region or the Embassies of GCC countries in Vietnam.

In addition, learn and research the GCC market directly or through the Vietnam Chamber of Commerce and Industry, the Trade Promotion Agency, the Asia-Africa Market Department of the Ministry of Industry and Trade, and Vietnamese Trade Offices in the region.

Source: VnEconomy