Vietnam has set its sights on low- risk export markets like Africa as a hedge against the risks involved in exports to more demanding markets.
The country has targeted 2.8 billion U.S. dollars in exports to Africa by 2010 with annual growth rate of 23.3 percent to overcome a major weakness of Vietnamese exports: their extreme vulnerability to external factors like trade barriers, local newspaper Vietnam News reported Thursday.
The key markets in the continent include South Africa, Egypt, Morocco and Tanzania, which are interested in such Vietnamese goods as seafood, furniture, mechanical and electrical products, handicrafts and farm produce.
The biggest hurdles in doing business in the African markets are high cost of transport and difficulties in payment, the report said.
Vietnam has eyed a growth rate of 14.1 percent in exports to Asia, and 15.5-19 percent to Europe, America and Australia in the 2006-2010 period.
Vietnam, which posted export turnovers of 32.2 billion dollars in 2005, a year-on-year increase of 21.6 percent, is boosting exports having large revenues, diversifying markets and fostering trade promotion in an effort to gain export growth of 16.4 percent in 2006.