According to MoIT's Industry and Trade Information Centre, over the past five years, bilateral trade surged six-fold from just $65 million in 2008 to $390 million in 2012.— File Photo

HA NOI (Biz Hub)— There is room for Viet Nam and Bangladesh to improve bilateral trade and investment relations, the Department of Africa, West Asia and South Asia Markets said.

Bangladesh is considered a promising market for Vietnamese exporters as it has a population of over 160 million and strong consumption power, the department, under the Ministry of Industry and Trade (MoIT), pointed out.

In spite of the similarities in export items, there are still areas ranging from production to consumption, where the industries of the two countries can complement each other.

In order to successfully penetrate this market, the department urged local firms to improve their understanding about the preferences and consumption taboos of the people in that country, as 89.5 per cent of Bangladeshis are Muslims.

Meanwhile, Bangladesh is encouraging foreign investment, resulting in more opportunities for foreign investors including those from Viet Nam, the department said.

It suggested that Vietnamese companies should invest in Bangladesh to capitalise on its investment incentives, low-cost labour as well as cheap land rentals.

Vietnamese textile and garment businesses should promote investment in Bangladesh and export products to third countries, the EU for example. The firms could also invest in industry and agricultural machinery.

According to MoIT's Industry and Trade Information Centre, over the past five years, bilateral trade surged six-fold from just $65 million in 2008 to $390 million in 2012. During the period, Vietnamese exports also increased significantly to $354 million in 2012 from $47 million in 2008.

This year, Viet Nam's exports to Bangladesh are estimated to hit $500 million, with key items being fibres, apparel, machinery and equipment, it said. — VNS