Exporting to Iran: Great potential is being left open

	Various Vietnamese fruits able to be exported to Iran
	FM affirms Vietnam-Iran trade transactions in line with UNSC resolutions

Tea is one of the typical agricultural products that have many opportunities to promote exports to the Iranian market. Photo: N.Thanh

With more research and market connections, a number of Vietnam's products such as tea, coffee, vegetables, etc. will have many opportunities to accelerate exports to Iran in the near future.

Vietnamese agricultural products have many advantages

Lam Thanh Hung Trading Co., Ltd. is an enterprise importing interior decoration products, Persian carpets, saffron, roses, and nutritional foods from Iran for sale in Vietnam; at the same time promoting the export of Vietnamese coffee, tea, cinnamon, anise, pepper, and garments to the Iranian market.

Ms. Nguyen Thi Hien Giang, Director of Lam Thanh Hung Trading Co., Ltd (who has over eight years of experience living and working in Iran) said that it is a potential market for Vietnamese goods. For agricultural products, Iran is also the "gateway" for Vietnamese goods to penetrate the large market in the Middle East.

Iran is the 8th largest cotton producer in the world; grape production ranks 3rd in the world; tea production is about 50,000 tons/year.

Iran's aquatic products mainly include salmon and sturgeon. Notably, saffron is a very famous product, and many units in Vietnam have imported it. However, Iran’s agricultural output is not enough to meet the needs of 86 million people, the import demand is very large from other countries, and it wants to trade with Vietnam.

Regarding specific products, Ms. Giang said, Iran has a need to import 1 million tons of rice per year and is currently mainly importing from India, Thailand and Pakistan.

“In Iran, each person consumes about 120kg of fruit per year. Tropical fruits are very popular in Iran, such as pineapple and mango. Each year, this market imports about 470,000 tons of tropical fruit, equivalent to about US$700 million. If the market is good, Vietnam can export items such as dragon fruit, guava, and pomelo to Iran," said Ms. Giang.

The Director of Lam Thanh Hung Trading Co., Ltd said that the prominent habits in the consumption culture of Iranians show that the potential for exporting tea and coffee to this market is huge. The habit of drinking tea and coffee in Iran has a long history because people like to gather in crowded places.

Currently, Iran mainly imports raw coffee, black tea, and green tea. Meanwhile, this is a strong product of Vietnam, which can boost exports to Iran in the near future.

Mr. Nguyen Thanh Long, Third Secretary, Vietnam Trade Office in Iran (concurrently Syria and Iraq) said that the opportunity to promote the export of goods to Iran, especially agricultural products, lies in the fact that the import demand of Iran is high because this country often suffers from drought and crop failure.

Notably, a survey of people and some importers in Iran showed that Iranian consumers are quite fond of Vietnamese products. Products of the two countries are often complementary and have little competition

According to Ms. Nguyen Thu Thuy, Deputy Director of the Export Support Center (Trade Promotion Department, Ministry of Industry and Trade), with a population of nearly 86 million people, Iran is a market consuming a large volume among the countries in the Middle East.

Vietnam and Iran have signed a number of cooperation agreements such as the General Agreement on economic, cultural and scientific and technical cooperation; the Agreement on Trade and the establishment of the Joint Committee; Investment promotion and protection agreements. These are also favorable conditions to further promote bilateral trade.

Focus on direct connection

The market is large with many opportunities to promote exports, but according to Mr. Nguyen Thanh Long, the payment method is a factor that Vietnamese businesses need to pay special attention to when trading with this market.

Many businesses are afraid because the Iranian market has been disconnected from the international payment system (SWIFT); the form of payment usually has to go through a third country. “It is recommended for Vietnamese businesses to carefully research and appraise their partners; high deposit requirements for new customers; using the method of payment by wire transfer T/T according to international practices," Mr. Long said.

Commenting that exporting goods includes many stages, there are always certain risks, so Mr. Long said that from the negotiation stage, enterprises must also be careful. In addition, the Iranians attach great importance to direct communication with their partners.

During the pandemic, Iran still conducts a fair to connect with buyers. Therefore, in terms of allowing Vietnamese businesses to do long-term business, they should directly approach and participate in fairs, seminars, and annual trade connection programs with the Iranian market.

Talking about the actual experience of trading with the Iranian market, Ms. Nguyen Thi Hien Giang said that it is very important to find out information about Iran. At the same time, exporting enterprises also need to clearly understand the payment channel before signing the contract; diversify trade promotion connection channels; always have a clear plan to prepare because the Iranian market has many religious and long holidays. “Enterprises must always keep a close eye on the work, closely follow the progress and contact regularly with partners. The ingenuity in negotiating with the Iranians will help bring many great business opportunities for enterprises," said Ms. Giang.