Currently, SEZ units are mandated to pay the regular customs duty on a product if they sell it in the domestic tariff area (DTA). The commerce ministry may float a proposal to allow units in special economic zones (SEZs) to sell goods in the domestic market, at least temporarily, at the lowest tariffs at which India imports from its free-trade partners. This will help the SEZs cope with the havoc wrought by the Covid-19 pandemic, sources said. Currently, SEZ units are mandated to pay the regular customs duty on a product if they sell it in the domestic tariff area (DTA). This is because an SEZ is a specifically delineated duty-free enclave and is a deemed foreign territory for the purpose of trade operations, duties and tariffs. Such units, therefore, have access to duty-free imports of goods, which manufacturers in the DTA are not entitled to. “The proposal is already before the commerce ministry. The pandemic has hit SEZs hard and hurt their liquidity flow. So, there is a need to implement this proposal, at least temporarily, to help them. This can be done after the revenue department’s approval,” a source told FE. As such, SEZs in India have somewhat lost their appeal, especially after the government last year adopted a sunset clause for granting a phased income-tax holiday for 15 years, according to senior industry executives. So, only those SEZ units which started production on or before June 30, 2020, will now get a 100% I-T exemption on export income for first five years, 50% for the next five years and 50% of the ploughed-back export profit for five years thereafter. Moreover, the corporation tax has been trimmed to as low as 15% for setting up new manufacturing units anywhere. So, without fresh incentives, SEZs won’t be able to draw many companies now, they say. Interestingly, a similar proposal made by the commerce department in 2015-16 was rejected by the finance ministry. Revenue department officials had then argued that permitting SEZs to sell goods in the DTA at zero duty (the rate at which many products are imported from India’s FTA partners) would provide an unfair tax advantage to SEZ units vis-à-vis domestic manufacturers outside such duty-free enclaves. Also, any such move could potentially cause revenue losses to the exchequer, they reckoned. However, commerce ministry officials have been arguing that the country also loses customs revenue when it imports from its FTA partners. On the claim of injury to domestic manufacturers outside the SEZs, the officials have been highlighting that they are, in any case, at a disadvantageous position vis-à-vis manufacturers in India’s FTA partners. So, it’s better to give the same FTA benefits to SEZs and create more domestic employment, according to the officials. Such a move would help SEZ units utilise idle capacities and save foreign exchanges for the country by lowering imports to that extent. Data collated by the Export Promotion Council for EoUs and SEZs show outbound shipments of manufactured products and trading services from SEZs crashed by 21% from a year before to Rs 2.46 lakh crore in FY21, while the country’s overall merchandise exports dropped by only 3% to Rs 21.54 lakh crore. Of course, services units, the dominant segment in SEZs, seemed to have coped with the pandemic impact better. Still, overall exports from SEZs recorded a 4% decline in FY21, against a 1.5% drop in the country’s total exports (in rupee terms).
Source: Financial Express
Under the revised rules, entities are required to make additional disclosures related to interest rate benchmark reform. The government has amended rules pertaining to various Indian Accounting Standards (Ind AS), including those related to interest rate benchmark reform. Ind AS are converged with the International Financial Reporting Standards (IFRS). On Friday, the corporate affairs ministry notified the Companies (Indian Accounting Standards) Rules, 2021. The changes have been made after consultations with the National Financial Reporting Authority (NFRA). Sandip Khetan, Partner and National Leader, Financial Accounting Advisory Services (FAAS) at EY India, said the ministry has issued the second phase amendments to interest rate benchmark reform and "has consequently made amendments to Ind AS 109, Ind AS 107, Ind AS 104 and Ind AS 116". "Where the Phase 2 amendments introduce new areas of judgement, entities need to ensure they have appropriate accounting policies and governance in place. For the additional disclosures, entities must ensure they can gather and present compliant information," he noted. Under the revised rules, entities are required to make additional disclosures related to interest rate benchmark reform. These dislcosures are to enable users of financial statements to understand the effect of interest rate benchmark reform on an entity's financial instruments and risk management strategy. Entities would have to disclose the nature and extent of risks to which they are exposed arising from financial instruments subject to interest rate benchmark reform, and how the entities the manage these risks. Among others, there are changes in the basis for determining the contractual cash flows as a result of interest rate benchmark reform. Prateek Agarwal, Partner at Nangia & Co LLP, said the disclosures will enable users of financial statements to understand……
Source: Economic Times
The government is open to coming out with more measures to boost the economy which has been hit by the second wave of the coronavirus pandemic, says Chief Economic Advisor (CEA) K V Subramanian. He, however, added that the demand for a fresh stimulus package has to be considered against the backdrop of a host of initiatives taken by Finance Minister Nirmala Sitharaman in her budget for 2021-22 presented in February. The Chief Economic Advisor was responding to a suggestion made by some industry bodies that the government needed to come out with a Rs 3 lakh crore stimulus package to boost the economy which was badly hit by the second wave of the coronavirus pandemic in April-May. According to an assessment by the Reserve Bank, the second wave has cost the nation about Rs 2 lakh crore in terms of output lost. "Like last year, we do remain very open to coming up with more measures as well...but I think it is really important to take into account the big differences between last year and this year when we talk about stimulus," he told PTI in an interview. Elaborating his point, the CEA said that unlike the previous budget which was framed before the pandemic, the 2021 budget was presented amid the pandemic and had already incorporated significant fiscal expansion. The focus is particularly on infrastructure spending which leads to construction activity and subsequently creation of jobs in the informal sector and demand generation, he said. It was witnessed during the January-March quarter of the last financial year, he added. The significant capital spending by the government led to a 15 per cent increase in the construction sector in the fourth quarter and the gross fixed capital formation to GDP surged to 34 per cent, the highest in the last six years. Emphasising that the final objective is to ensure that the economic recovery gathers pace, he said, the government will do whatever is necessary to ensure that. With regard to food security for the poor, he said, the government has already extended the free food programme for 80 crore population till November. The extension of PM Garib Kalayan Yojana would cost about Rs 70,000 crore, he said, adding free vaccination for all is another important economic measure. "Vaccine as you would appreciate is by far the most important from the perspective to get back into the path of economic recovery," he said. On the effect of the second wave on growth, Subramanian said, there will be some impact but it is not likely to be very large. The Economic Survey 2020-21 released in January this year had projected GDP growth of 11 per cent during the current financial year ending March 2022. India's economy contracted by less-than-expected 7.3 per cent in the fiscal year ended in March 2021 after growth rate picked up in the fourth quarter, just before the world's worst outbreak of coronavirus infections hit the country. The GDP print was better than expected contraction of 8 per cent for 2020-21 as projected by the Economic Survey.
Source: Business Standard
However, RBI said this will still cover less than 15 months of projected imports, against Switzerland’s 39 months, Japan’s 22 months, Russia’s 20 months, and China’s 16 months The frenetic accumulation of foreign exchange may check the strengthening of the local currency and fuel Indian exports in the short term, experts said, with the central bank hinting that current reserves of $600 billion are sufficient to cover imports for a shorter duration than many other large economies. The Reserve Bank of India’s (RBI’s) 16 June monthly bulletin said forex reserves crossed $600 billion, making India the world’s fifth-largest reserve holding country. However, RBI said this will still cover less than 15 months of projected imports, against Switzerland’s 39 months, Japan’s 22 months, Russia’s 20 months, and China’s 16 months. Since the publication of the bulletin, the reserves rose further to $608.08 billion as on 11 June. “There is an intrinsic bias towards accumulation, which will have a residual impact on the rupee. There is a chance that the rupee will mostly underperform compared to emerging market peers even with healthy emerging markets flows," Madhavi Arora, lead economist at Emkay Global Financial Services, said over the phone. The shorter import cover warrants a pragmatic assessment of reserve adequacy on forex reserves, including exposure to valuation changes and market risk in a world of heightened global uncertainty, the bulletin noted. The rupee closed at 73.86 per dollar on 18 June, strengthening after eight straight sessions of decline. Arora of Emkay Global added that policymakers are trying to achieve export competitiveness using the nominal exchange rate route, as productivity dynamics cannot be improved immediately. “The least that they could do is allow the currency to depreciate. Honestly, in the medium term, it is not your nominal exchange rate that will matter but your real exchange rate," she said. However, experts cautioned that while a weaker rupee may aid in increasing exports, rising inflation could play spoilsport. For now, the monetary policy committee (MPC) is expected to be in a wait-and-watch mode and look through the surprise surge in retail inflation in May. Inflation measured by the Consumer Price Index (CPI) came in at 6.3% in May, above the Reserve Bank’s target band of 2-6%. “Keeping your exchange rate undervalued helps your external sector at the expense of the domestic sector. It is basically trying to shift consumption away from the households to the external sector," said Anindya Banerjee, deputy vice-president (currency derivatives and interest rate derivatives) at Kotak Securities. Banerjee explained that when the currency is strong, domestic consumption gets a boost, but when it is weak, it incentivizes exporters.India’s exports expanded in May this year when compared with May 2019 in sectors such as engineering goods, petroleum products, iron ore, cotton textiles and drugs and pharmaceuticals. The Reserve Bank added that engineering goods, accounting for nearly a fourth of the total exports, were massively affected due to demand and supply disruptions caused by the pandemic. However, this segment has bounced back, staging a smart recovery in recent months, surpassing pre-pandemic levels. RBI governor Shaktikanta Das also alluded to a strengthening of the external environment and said it augurs well for India’s export sector. This comes at a time when urban demand has weakened following the second wave. “Global demand conditions are expected to improve further, buoyed by fiscal stimulus packages and the fast progress of vaccination in advanced economies. India’s exports in March, April and May 2021 have launched into an upswing," Das said on 4 June.
Source: Live Mint
Active and timely supply-side policy measures with regard to petrol and diesel, edible oil and pulses, among others, would be critical to bring about a durable softening of price pressures,” Reserve Bank of India (RBI) Governor Shaktikanta Das said at the MPC meeting. Shaktikanta Das said at the MPC meeting. The central bank’s Monetary Policy Committee (MPC) is unanimous in its belief that India’s fledgling economic recovery must be supported by an accommodative stance as price pressures, reflected in the latest consumer and producer inflation prints, would ease when temporary supply bottlenecks are removed. Both monetary and fiscal support, the MPC believes, are needed to ensure demand doesn’t fall victim to the pandemic, showed the minutes of the……..
Source: Economic Times
Australia has asked India to provide the overall value of cotton production in the country and confirm that New Delhi has not exceeded the ceiling. The issue came up on June 17- 18 at the meeting of the WTO Committee on Agriculture. India’s Agriculture Infrastructure Fund (AIF) and cotton subsidies have come under scrutiny at the World Trade Organization (WTO), with Australia seeking clarity on the scope of the fund and confirmation that New Delhi has not exceeded its 10% ceiling support, called de minimis in trade parlance, for the natural textile fibre. Australia has asked India to provide the overall value of cotton production in the country and confirm that New Delhi has not exceeded the ceiling. The issue came up on June 17-18 at the meeting of the WTO Committee on……………….
Source: Economic Times
When most industries in India are gasping in the second wave, shipping of the decorative and ornamental has started afresh. Differences in countries dealing with and recovering from the COVID-19 pandemic have had a positive impact on one segment of the Indian economy. Export of certain goods based on handicrafts has picked up, with the US and Europe clawing back to normal. When most industries in India are gasping in the second wave, shipping of the decorative and ornamental has started afresh. Carpet exporters of Uttar Pradesh and Haryana, gems and jewellery merchants in Rajasthan and those involved with embroidery and wooden lacquerware in Punjab have seen figures rise after a slump last year. Textile exporters have also seen things improve, in parts like Rajasthan's Bhilwara. Most of their buyers are in the US and Europe, where the pandemic was at its peak last year. Canada, Australia and the UAE are also among the popular destinations of these products. The situation demanded exporters to plan differently. A majority of these businesses suffered deep losses in the domestic market since the virus spread and lockdown became the norm. This prompted some of these ventures to take the virtual route and display their ware to customers abroad. With restrictions gradually easing in those countries, these online expos became successful. Export of handmade carpets from UP and Haryana went up by 17.76 per cent in 2020-21, from Rs 11,799 crore in 2019-2020 to Rs 13,824 crore. After shipping out coloured gemstones worth Rs 127.61 crore last year, exporters in Jaipur witnessed this figure rise to Rs 460.35 crore already in 2021. Bhilwara's textile enterprise has also recorded a growth, while Punjab’s handicrafts have staved off losses, clocking exports worth around Rs 3 crore in both years. The Carpet Export Promotion Council (CEPC, set up by the Union ministry of textiles) held four virtual international fairs, showcasing the most innovative products. "It not only helped exports stay afloat after the jitters in April-May, 2020, but also helped eliminate the high cost of organising international carpet expos physically in India or abroad," says outgoing CEPC president and UP-based carpet exporter Siddhnath Singh. This business is based primarily in Mirzapur and Bhadohi in eastern UP and Panipat in Haryana. According to Singh, over 50 per cent of their market is in the US, 25-28 per cent in European nations and 20-22 per cent in South America, Asia Pacific and the Middle East. "By June last year, the debilitating effect of the pandemic started declining, as the Panipat-based carpet units started meeting pending overseas orders. Though data of exports for this April and May is not yet tabulated, the industry is confident it has not been as badly hit in the second wave as in the first. The virtual platform has given us an opportunity," Singh asserts. Things are literally glittering in Rajasthan's handicraft industry. Exports have picked up in a big way in recent months and they continue to provide jobs. In 2020, gems and jewellery exports amounted to Rs 372.95 crore. From March to May this year, the figure has risen to Rs 1,396.24 crore. "Demand from the foreign markets is growing again. Besides that, with no national lockdown this year, the units in Jaipur, Mumbai and Surat could keep functioning. In April alone, the country exported gems and jewellery worth Rs 25,226.11 crore," informs Sabyasachi Roy, Director of Gems and Jewellery Export Promotion Council. Handicraft exporters also confirmed that figures are going up. Between March and May in 2020, 4,277 containers worth Rs 410 crore were exported. In the same period this year, they have shipped 7,643 containers valued at Rs 730 crore from Jodhpur’s handicraft sector. Ismail Khan, handicraft exporter in Jodhpur, says markets were open in the UK, other parts of Europe and the US, resulting in increased demand this year. "I am happy that hundreds of artisans were able to feed their families during the tough times." Although Punjab's handicraft dealers have seen sales plunge domestically, exports remaining the same has given them fresh hope.
Source: New Indian Express
Industry insiders say that the top 10 Indian couture houses had turnovers between Rs 200 crore and Rs 800 crore in 2019-20, before the pandemic hit. Couturier Ritu Kumar and her CEO son, Amrish, have been working at breakneck speed to set up new brands under her label. In the last three months, her company announced the launch of two: Aarke, a “belowpremium” brand targeting the masses, and Label Basics that caters to post-Covid loungewear demand. Kumar’s original couture business has expanded into both high-end and high-street ready-to-wear labels, but these haven’t achieved the scale of better-funded multinational or even corporate
Source: Economic Times
Dr Guruprasad Mohapatra had assumed charge as the secretary of the DPIIT in August 2019 Dr Guruprasad Mohapatra, Secretary of Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), has passed away of COVID-19 related complications. Mohapatra was admitted to AIIMS in mid-April, as per a PTI report. "Extremely saddened to hear about the loss of Dr. Guruprasad Mohapatra, Secretary DPIIT. His long-standing service and dedication to the Nation have left a lasting impact. I convey my deepest sympathies to his family and friends," Union Minister Piyus Goyal tweeted. An Indian Administrative Service (IAS) officer of 1986 batch, Mohapatra had assumed charge as the secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) in August 2019. Prime Minister Narendra Modi also paid his tributes. "Saddened by the demise of Dr. Guruprasad Mohapatra, DPIIT Secretary. I had worked with him extensively in Gujarat and at the Centre," Modi tweeted. The Prime Minister further said that Mohapatra had a great understanding of administrative issues and was known for his innovative zeal. "Condolences to his family and friends. Om Shanti," he added. Taking to Twitter, Union Minister Dharmendra Pradhan said that In Mohapatra’s untimely death, India has lost an able administrator. "A pioneer, he made unparalleled contributions in reforming the urban development landscape in Gujarat, led many public enterprises with distinction and also steered the commerce & aviation sector," Pradhan tweeted. RBI Governor Shaktikanta Das tweeted, "Deeply saddened by the demise of Dr.Guruprasad Mohapatra,Secretary DPIIT,GOI. A highly efficient and dedicated civil servant. Knew him as a former colleague through several interactions.Was always very responsive and constructive. May his soul rest in eternal peace." Before taking over as the secretary of DPIIT, he had served as the chairman of the Airports Authority of India (AAI). Mohapatra had also served as a joint secretary in the Department of Commerce, where he worked for the promotion of special economic zones (SEZs), public procurement and project exports (financing and insurance). He was a Gujarat cadre 1986 batch IAS officer. At the state level, he held the portfolio of Municipal Commissioner in Surat, Gujarat.
Source: Money Control
The Philippine Exporters Confederation warned over the weekend about the declining numbers of ship calls to the Philippines, saying these may delay the delivery of goods and affect exports and imports. Philexport president Sergio Ortiz-Luis said while export numbers were increasing based on the report of the Philippine Statistics Authority, the numbers could be deceiving if taken at face value. “There is this ongoing lack of shipping services. The backlog is increasing, as we speak,” he said. Ortiz-Luis said the lack of ships going to the Philippines was part of the slowing of global maritime movement amid the pandemic. Shipping companies limited the dispatch of ships for several reasons relating to pandemic, including the surges in some countries and health concerns of the crew. Ortiz-Luis said the situation was worse than port congestion and that it was beyond the control of Philippine authorities. “We can charter ships if there is an urgent need, but this will be very expensive. We expect rates to quadruple or even quintuple. The lowest rate we’re expecting would be triple the regular rates. If you happen to get a booking, they require advance payments,” he said. PhilExport expressed concern over the plight of exporters especially the micro-, smalland medium enterprises. It said a lot of exporters would be affected from the shipment of raw materials to the export of finished goods. Ortiz-Luis said many exporters already stopped accepting supply from local farmers because of the unreliability of ship calls. PhilExport said not only US-bound and UK-bound shipments were affected, as almost all countries with sea trade connection to the Philippines suffered from the same difficulties. Ortiz-Luis said his group was in talks with the Maritime Industry Authority for assistance. Garment and furniture exporters earlier expressed concerns over shipment delays and rising freight rates amid the global supply chain squeeze. Robert Young, Philippine Exporters Confederation Inc. trustee for the textile sector and president of the Foreign Buyers Association of the Philippines, said the garment industry was incurring millions of dollars in losses because of the supply chain squeeze. “The issue of vessel space availability is a huge one for us and our clients. Delay is between two weeks to almost two months. We are seasonal holiday-heavy and [it is] very critical that goods move on time as they have a short selling period,” Young said. The space issue creates a domino effect that aggravates delays in shipment, one garment company said. Garment stakeholders said if they could not move the goods, then they would not be paid. Other issues ailing the garment industry were the slow release of permits and import license, rising cost of natural materials and shortage of raw materials. These added to manufacturing costs and led to continuing loss of the local business to Vietnam and Indonesia. Meanwhile, furniture exporters asked the Chamber of Furniture Industries of the Philippines to help them find slots on vessels and address soaring freight rates. One shipper said the cost of freight rose from around $4,000 per 40-foot container to $12,000, making their products uncompetitive.
Source: Manila Standard
The textiles and garment sector is likely to be impacted by the Covid-19 situation getting more complicated across Vietnam. Industry insiders say the pandemic situation in HCMC, in particular, will drag the sector down in the remaining months of the year. The pandemic has already penetrated some industrial parks in HCMC, so if staff of garment and textile firms get infected, work would stop and fulfillment of orders would slow down, said Pham Xuan Hong, head of HCMC Association of Garment, Textile, Embroidery and Knitting (AGTEK) Garment and textile firms are labor-intensive affairs with many workers concentrating in certain places, so the risk of Covid-19 breaking out in factories is very high, said Le Tien Truong, chairman of Vietnam National Textile and Garment Group (Vinatex), adding that the production chain is likely to be broken amid the outbreak. Vinatex has 150,000 workers nationwide, with most of its affiliates having an average workforce of 2,000 each. In the first three waves of Covid-19, no Vinatex affiliates reported any Covid-19 infection. In the ongoing fourth wave, some enterprises in the northern province of Bac Ninh and the central city of Da Nang have reported infected workers. "This is the first time in 18 months of Covid outbreaks that workers in Vinatex affiliates have been infected with the disease, forcing them stop production and face considerable losses," the Vinatex chairman said. If production comes to a halt due to Covid 19, goods delivery will be delayed, causing losses for producers and exporters, he said. Affected enterprises will have to shift to transporting goods by air, instead of by sea to ensure timely shipment. This would make the shipment prohibitively expensive, Truong noted. Vinatex and AGTEK have proposed the government prioritizes vaccination against Covid19 for garment and textile workers. Most of garment and textile firms have said they are willing to cover all vaccination costs. Vietnam’s textiles and garment export turnover reached $5.8 billion in the first five months, a year-on-year rise of 4.8 percent.
Source: VN Express
The Covid-19 situation in the US has somewhat come under control following mass vaccinations. Many restrictions have been relaxed. People have increased shopping too. As a result, export of readymade garments has risen to the US from various countries. The US still has been reporting more than 12,000 new cases of coronavirus with 300 to 400 deaths daily. Buyers and brands in the US imported apparel products worth $21.26 billion (2,126 crore) from various countries in the first four months (January-April) of 2020. Imports rose by 8 per cent to $23.07 billion (2,307 crore) in same period of 2021. Exports from China and Vietnam have increased during this span of time whereas Bangladesh couldn’t take advantage of the situation. On the contrary. its exports have declined. The US Department of Commerce’s Office of Textiles and Apparel (OTEXA) released the latest data. The US import of apparel products dropped by 23.43 per cent to $64.07 billion (6,407 crore) in 2020. According to OTEXA, Bangladesh exported apparel products worth about $2 billion (199.79 crore) or Tk 169.82 billion (16,982 crore) to the US in the first four months of 2021, that is a 3.71 per cent fall comparing to the corresponding period of the previous year. Bangladesh is the third largest apparel exporter to the US after China and Vietnam. China’s export to the US, however, rose significantly. Its export of ready-made garments rose by 19.86 per cent year-on-year to $4.66 billion (466 crore) in January-April of 2021. On the other hand, Vietnam exported apparel worth about $4.55 billion (455 crore) to the US in January-April of 2021, which is 8.91 per cent higher than the export earnings of $4.18 billion (418 crore) in the corresponding period of the previous year. Vietnam shares 19.65 per cent of the US ready-made garment market while Bangladesh shares only 7.82 per cent. According to the OTEXA, like Bangladesh, export of ready-made garments by India and Indonesia also declined. India’s export of apparel to the US dropped by 1.10 per cent year-on-year to $1.34 billion (134 crore) in the first four months of 2021. India is the fourth largest apparel exporter to the US. Besides, Indonesia exported apparel worth $1.27 billion (127 crore) to the US in JanuaryApril of 2021, which is 11.18 per cent less comparing to the corresponding period of the previous year. Vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohamamd Hatem told Prothom Alo, “Exports dropped a little last May because of Ramadan and Eid. But we expect exports will increase from July-August. Because a good number of work orders are coming but not like that of regular times. Several work orders of the US buyers and brands have been diverted from China, Vietnam, and Cambodia to our country.” Mohamamd Hatem further said buyers are offering lower prices despite the work orders. Yet the price of cotton has increased. In many case, the situation gets so complex since buyers don’t want to offer prices closes to the manufacturing cost. For this reason entrepreneurs have been forced to decline many work orders. A portion of the work orders started coming to Bangladesh in the aftermath of the USChina trade war in 2019. Bangladesh’s export of apparel to the US reached a seven-year high of $5.93 billion (593 crore) that year.
Source: Prothomalo
The new Argentinian Ambassador to Vietnam, Luis Pablo Maria Beltramino, has affirmed his country’s willingness to upgrade its relations with Vietnam to a strategic partnership, especially when the two sides are preparing to mark the 50th founding anniversary of their diplomatic ties in 2023. The new Argentinian Ambassador to Vietnam, Luis Pablo Maria Beltramino, has affirmed his country’s willingness to upgrade its relations with Vietnam to a strategic partnership, especially when the two sides are preparing to mark the 50th founding anniversary of their diplomatic ties in 2023. Talking to the Vietnam News Agency after presenting his credentials to President Nguyen Xuan Phuc, Beltramino expressed his honour to be appointed Ambassador of Argentina to Vietnam and pledged all-out efforts to continue promoting the solidarity, friendship, and cooperation between the two countries, which set up their comprehensive partnership in 2010. Valuing the flourishing extensive cooperation, he highlighted its three pillars of political dialogue, trade, and technical collaboration. The ambassador noted the political dialogue mechanism has been deployed in the form of all-level mutual visits, especially those at high levels. Meanwhile, he went on, the two economies are complementary to each other, and Argentina is ready to diversify products to meet Vietnam’s demand. On the other hand, the Southeast Asian nation also boasts a number of high-quality products like technology, textile-garment, and footwear, which are all popular in his country. The seventh meeting of the inter-governmental committee on economic-trade and scientific-technological cooperation will take place in August to discuss trade opening, Beltramino announced. He applauded the effectiveness of bilateral technical cooperation over the last two decades, noting the implementation of 15 joint projects in various fields, including industry and agriculture, which are the strengths of both Argentina and Vietnam. The diplomat also talked about bilateral collaboration in forensic anthropology, in which the South American nation has been helping Vietnam to identify war martyrs. Expressing his delight at the growth of the comprehensive partnership through multiple signed agreements, the ambassador highlighted potential fields for future cooperation, such as high tech and satellite services for peace purposes, for examples, supporting the study of soils, meteorology and agricultural production efficiency, of which Argentina holds competitive advantages. Beltramino also highly spoke of the two countries’ mutual support for each other and exchanges of views in addressing the world’s emerging challenges, namely climate change, human assistance, peacekeeping, observation of UN Charter and COVID-19 response. He expected Argentina and Vietnam will strengthen ties to together tackle these challenges for the benefits of the two peoples. He took the occasion to congratulate Vietnam's national football team on advancing to the third round of World Cup qualification for the first time. He proposed the two countries to cooperate in training players, saying promoting relations between their football federations and football clubs is a good idea, which will not only boost the development of the sport in Vietnam but also contribute to tightening the bilateral ties. Argentina, on the other hand, is very interested in developing badminton, a very popular sport in Vietnam, he said. Argentina was one of three Latin American countries, together with Cuba and Chile, to establish diplomatic relations with Vietnam before 1975. The bilateral diplomatic ties were set up on October 25, 1973. Argentina is now Vietnam’s third largest trade partner in Latin America, after Brazil and Mexico, with two-way trade reaching 3.95 billion USD in 2020, an increase of 4.3 percent from the previous year. According to the Vietnamese Ministry of Industry and Trade, the bilateral trade totalled 440 million USD in the first two months of this year, of which Vietnam’s exports to Argentina hit 174 million USD, up 164.52 percent year-on-year.
Source: Vietnam Plus
