Export Promotion and Foreign Investment Absorption A Priority of Tact & Hope Government
The noticeable successes achieved in foreign diplomacy following the ۱۱th Government taking term, enlightened the foreign investment atmosphere in Iran and golden investment opportunities have turned this country into a good opportunity for foreign investors and dispatched tens of European economic delegations to Iran. Accordingly, many economic activists believe that the active diplomacy of Tact & Hope Government has depicted a better picture of Iran in other countries which gradually manifests itself in the form of an increase in the I.
The noticeable successes achieved in foreign diplomacy following the 11th Government taking term, enlightened the foreign investment atmosphere in Iran and golden investment opportunities have turned this country into a good opportunity for foreign investors and dispatched tens of European economic delegations to Iran. Accordingly, many economic activists believe that the active diplomacy of Tact & Hope Government has depicted a better picture of Iran in other countries which gradually manifests itself in the form of an increase in the I.R. of Iran´s cooperation with other countries. To these people, the president´s recent travel to the United Nations, Kazakhstan and Tajikistan during which he presented the real face of the country, increased the economic cooperation between Iran and other countries.
While mentioning the reverse trend of sanctions during the ۱۱th Government, de-escalation of tensions in internal and external policy is a pre-requisite of foreign trade promotion. It seems that the adoption of open policies in export promotion and foreign investment absorption is on the list of government´s priorities more than ever. Based on this, putting in place the necessary mechanisms to facilitate trade and business environment and helping to improve the risk rating of Iran in the international agencies, are among the most important plans which is pursued by authorities.
Every day it is witnessed that many trade delegations from different countries of the world travelling to Iran or many Iranian businessmen visiting other countries. The suitable international condition created in favor of Iran´s economy, paves the way for expansion of economic activities and trade. Many countries are now looking for such expansions and economic relations with the Islamic Republic of Iran and this opportunity must be utilized suitably.
The development of bilateral and multilateral cooperation with other countries prepares the ground for the improvement of Iran´s foreign trade. To reach this aim, the promotion of trade relations with neighboring countries and those in the region brings about the benefits of a win-win situation. Most of analysts believe that none of Iran´s neighbors or countries in the region was willing to minimize trade relations; because these are not definitely to their benefits. Now it seems that with the present active diplomacy of government toward some countries of the region, there is a good improvement in the expansion of trade relations.
Iran´s Chamber of Commerce and Trade Promotion Organization (TPO) have taken effective steps to reach such a goal and to remove the barriers by exchanging trade delegations with different countries. A good change of attitude toward Iran by foreign traders and investors is observed. On the other hand, industrial entities should make up for the capacities needed for such development of trade relations with other countries and TPO should help those entities for such capacity building.
TPO have also planned for the empowerment of domestic companies to build up the necessary capacity for entering into global markets via forming joint consortiums. Moreover, covering the risks involved in international trade is among the most important and effective measures which pave the way for the expansion of trade between Iran and other countries and therefore, Export Guarantee Fund of Iran can definitely help this expansion by a fruitful collaboration with other counterpart ECAs.
The public and private companies should try to explore different ways for expansion of trade and investment with other countries. For instance, implementing techno-engineering projects in third countries jointly with Russia, China, Turkey, etc. can have a lot of benefits for all sides. To do this, it is necessary that not only private sector of both countries should work together effectively, but also the facilitating entities such as banks and insurance companies should interact efficiently.
While reiterating on the necessity of utilizing international expertise, implementing big project of let´s say more than hundred million dollar, by just one country is risky, and with the sharing of risk and return, there will be better results. Therefore, these agencies could focus on cooperating on projects, rather than just signing MOUs and exchanging information. Extending credit lines bilaterally is one of the ways that can facilitate trade with target markets in short term.
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