Bangladesh is likely to seek duty benefit for products it exports to Vietnam as Dhaka has suffered trade deficit for the last six years, a senior commerce ministry official said.
Bangladesh trade officials and diplomats will discuss relaxation of origin rules, and barriers that hinder both-way commerce in a joint committee meeting the two countries, scheduled for 22-23 March in Dhaka.
"Our export to Vietnam has remained stagnant for the last five years despite the prospect mainly due to some trade barriers and anomalies. We will discuss the issues during the joint committee meeting," a joint secretary of commerce ministry told the FE.
"If the barriers are withdrawn and other anomalies are fixed, then our export to Vietnam will see a big rise," he added.
The country has enjoyed trade surplus with Vietnam till 2008-09 financial year. But that began to change since 2009-10 when the gap increased against Dhaka.
Bangladesh's trade imbalance with the south-east Asian country in 2013-14 stood at US$526.24 million.
The commerce official said local exporters experience complicated and time-consuming formalities while exporting goods to Vietnam.
Officials said Bangladeshi exporters need to submit different types of certification during exports, some of those are from nominated organisations and countries, which impede smooth trade.
General Secretary of Bangladesh Association of Pharmaceutical Industries Abdul Muktadir said only four companies are exporting medicines to Vietnam, but exporters need to follow complicated formalities while exporting drugs.
"Local exporters need to provide information about API (active pharmaceutical ingredient) sources. In some cases, exporters fail to exports," said Mr Muktadir.
Bangladeshi exporters will also require applying for registration with the offices of Vietnam through ACTD form, which requires a lot of complicated papers, he added.
Mr Muktadir, also managing director of Incepta Pharmaceuticals, noted that traders need to submit bio-equivalence test and Vietnam only accepts certificates issued by that country, which is time-consuming and costly.
"Each certification costs the exporters US$ 25,000 to $ 50,000," said the BAPI leader. "We face this kind of complicated formality nowhere in the world," he said, urging the government to work with Vietnam authorities to simplify process.
Abdus Salam Murshedy, President of Exporters' Association of Bangladesh, said it is possible for Bangladesh to regain trade balance with Vietnam in Dhaka's favour through negotiation of the meeting.
"Bangladesh's exports remain stagnant, but imports are increasing. It is because of our liberal attitude and strictness by the Vietnam authority. It should not be the case," he said. "Bilateral relations should be founded on win-win formula," he added.
However, according to high officials at the commerce ministry, Bangladeshi exporters are facing different types of trade barriers and anomalies while exporting goods to Vietnam which is bringing down our export to the country despite immense potentials.
Bangladesh's major exports include pharmaceuticals, raw hide and skins, oil seeds, fish, yearn, hand-made filament, apparel clocks and watches and others.
The country imports dairy products, eggs, natural honey, prepared food items, beverage and chemicals.
Meanwhile, officials sat Sunday to finalise the agenda of the upcoming meeting with Hanoi, where representatives from the ministry of commerce, Export Promotion Bureau, foreign ministry, Tariff Commission and FBCCI were present.
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