HANOI, May 14, 2008 (AsiaPulse via COMTEX) -- -- The value of trade between Vietnam and Europe will surge this year, but the European market will still present challenges for Vietnamese traders, according to Vietnams Ministry of Industry and Trade.

The ministrys European Market Department said Vietnam's total trade value to European markets was expected to climb this year by 22.5 per ent over last year's value to US$54 billion, of which the export value will reach $2.15 billion, up 22 per cent, and the import value will be $.39 billion, up 25 per ent.

Vietnam expected the jump in values largely as a result of the increasing import and export activities and foreign investment that had both followed the country entering the World Trade Organisation, the department.

In addition, bilateral cooperation programmes between Vietnam and the European Union (EU) will boost the development of all sectors, including economic sectors.

Vietnam expects to gain $1.18 billion in exports to the EU, up 234 per ent, and pay $.42 billion for imports from the EU, up 25 per ent.

Export goods to the EU include footwear, garments, seafood, coffee, wood products, electronic and computer components, handicrafts, bicycle and bicycle parts and plastic products.

The European Market Department said associations and exporters of garments, handicrafts, plastic products, wood products and instant noodles should pay attention to Russian and Eastern European markets to increase their export value because these markets had huge demands for such products.

Meanwhile, the department said, the EUs tax policies for Vietnams exported footwear could affect export results this year between the two sides. These new policies include the application of an anti-dumping price tax for leather-based shoes and consideration of abandoning the Generalised System of Preferences (GSP) for some Vietnamese export goods, such as footwear.

The department said Vietnamese enterprises should enhance participation in market research delegations and trade fairs in order to establish permanent partners, open new markets and develop new export products.

(VNA)

Tuesday, May 13, 2008; Posted: 11:48 PM

Source: www.tradingmarkets.com