ECONOMYNEXT – Importing specific products and the potential for signing a free trade agreement was discussed between Vietnam Ambassador Trinh Thi Tam and Sri Lanka Trade Minister Wasantha Samarasinghe, a statement said.
Bilateral trade between the Sri Lanka and Vietnam had been around 300-350 million US dollars a year.
Minister Samarasinghe had noted Viet Nam’s recent economic development, especially in market expansion, hi-tech agriculture development and tourism diversification, setting a good model for Sri Lanka.
Sri Lanka was taking action to improve the country’s production, food security, job creation, exports and FTAs network, as well as targeting 5 billion US dollars from tourism by 2030 with arrivals of 3 to 4 million.
“In response, the Ambassador noted that Sri Lanka is Viet Nam’s fourth-largest market in South Asia and there are many potentials between the two countries,” the statement said.
“She also pointed out the challenges in bilateral trade, such as the similarity of exchanged commodities, the lack of market interest and direct flight as well as Sri Lanka’s current high import tax rates.”
Minister Weerasinghe had Samarasinghe explained that taxes were kept high to protect domestic producers.
Vietnam is a free trading country where the poor can no longer be exploited by ‘domestic producers’ either manufacturing farming lobbies though high import duties, analysts say.
Vietnam also exports and imports the same product. Under free trade, economic freedoms of the people are assured and Vietnam’s manufacturing and agricultural sectors are export competitive.
Meanwhile, the statement said Sri Lanka’s Trade Ministry was keen to initiate direct imports by a wholesale trading establishment, to fill scarcities in domestic markets, like in rice and coconut.
“The Minister expressed his interest particularly in the potential of signing a FTA between Sri Lanka and Viet Nam, noting that Sri Lanka has already signed FTAs with Thailand and Singapore, among ASEAN countries,” the statement said.
“The possibility of importing specific products from Viet Nam is also under consideration.
The Ambassador confirmed Viet Nam’s continued support for Sri Lanka and said Sri Lanka businesses were connecting with businesses in particularly in sectors like electric vehicles, coffee, coconut shells and fertilizer.
Ambassador Tam had informed the Minister about the upcoming 4th Joint Commission on Trade between the two countries, to be hosted by Sri Lanka this year, seeing this mechanism event an ideal platform for detailed discussions on closer trade cooperation.
The participation in trade fairs and online business forums were suggested to enhance information sharing between the two nations’ business communities. (Colombo/Mar03/2025)
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