Countries in the Middle East have become familiar to Vietnamese enterprises and people. Vietnamese goods are now present in countries such as the UAE (United Arab Emirates), Kuwait, Israel, and Egypt. Vietnamese overseas workers have been diligently working in Kuwait, Qatar, Dubai, Lebanon, Saudi Arabia, and other countries.
There is another country in this region — the Sultanate of Oman — which is one of the markets that can and should be expanded both for labor export and goods export.
Rich but Short of Labor
Vietnamese workers will not be completely prohibited from eating beef or pork as in some other Middle Eastern countries.
The official name of this kingdom is the Sultanate of Oman. It has 1,600 km of coastline facing the Indian Ocean, is located next to the UAE, and shares borders with Saudi Arabia and Yemen, making it very convenient for our enterprises to access.
The area of this country is approximately the same as Vietnam, at 309,500 km², but its population is very low. Like other countries in the region, native Omanis account for only 73% of the population, while the rest are foreigners coming to work and live there.
Oman has been blessed with a huge reserve of “black gold,” with proven reserves of up to 5.4 billion barrels, allowing oil companies to extract up to 800,000 barrels per day. Every year, Oman exports more than 40 million tons of oil and oil products, not including a huge volume of natural gas. Thanks to such natural resources, it is understandable that the GDP per capita of this kingdom reaches nearly USD 10,000 per year.
The living standards and purchasing power of the people of Oman are high. With only 2.5 million people, Oman has 1 million radios and 1.2 million television sets. The Internet is widely used in companies and households. Compared with other countries in the region, it can be said that the people of Oman enjoy a relatively high cultural standard of living.
However, with 82% of the country’s land area being desert, apart from oil revenue, Oman does not produce much in agriculture, industry, or consumer goods. Agriculture, forestry, fisheries, and hunting combined contribute only 3.2% to GDP. This is a favorable point for Vietnamese enterprises to enter the market and sell consumer products, food, foodstuffs, and other goods, as we have done quite successfully in Kuwait, Dubai, and Sharjah (UAE). In terms of labor, Oman is also a potential and attractive market for Vietnam to export labor to, because this kingdom is very short of workers. It is unclear whether any Vietnamese labor export enterprises have approached Oman yet.
More Comfortable for Workers
About 75% of Oman’s population are Muslims, while the rest are Hindus and a small Christian community. Islam in this country is not as strict as in some other countries. For example, the royal symphony orchestra has many female musicians, and cultural activities here are diverse and rich. An interesting detail for workers — if they go there for labor export — is that they will not feel too deprived due to a lack of pork, because pork can still be bought through the Christian community; while the Hindu community worships cows, beef can still be purchased freely in Muslim areas.
In addition, although the population is not large, Oman has two English daily newspapers: Times of Oman and Oman Daily Observer, a weekly English commercial magazine called Oman Commerce, and dozens of newspapers and weekly publications in Arabic. Of course, Omanis speak Arabic, but English is widely used there, which is also an advantage for Vietnamese enterprises, including overseas workers, if they receive proper English training before departure.
Since Oman has not yet established an embassy in Hanoi and Vietnam also does not have an embassy in Muscat, Vietnamese enterprises wishing to enter Oman may contact the Vietnamese Consulate General in Dubai (UAE) in advance to request assistance in applying for an Oman visa. Applications and passport photocopies may be sent by fax for prior visa processing.
Oman has diplomatic relations with 135 countries, including Vietnam. As one of the six member states of the Gulf Cooperation Council (GCC), Oman has a tax rate similar to that of the UAE, Kuwait, and Saudi Arabia. The advantage is that workers do not have to pay any tax on their wages. In addition, local phone calls in Oman are free, and calls back to Vietnam are much cheaper than calls from Vietnam to Oman.
MR. NGUYEN NGOC QUYNH, DIRECTOR OF THE DEPARTMENT OF OVERSEAS LABOR MANAGEMENT:
Starting to Explore the Oman Market
Currently, about 570,000 foreigners are living and working in Oman. Oman has a strong demand for foreign workers, mainly in the service sector. Vietnam has established labor cooperation relations with Oman, and in recent times, a number of workers have been sent there to work, with income equivalent to that in other countries in the region.
In the plan to expand labor export markets in the Middle East, adding the Oman market will provide workers with more options. We have carefully surveyed this market and are beginning to explore it, while encouraging enterprises to thoroughly study the market and partners, and to secure orders that ensure employment and income for workers.
Recorded by D.Q.
NGUYEN LE BACH
Former Vietnamese Ambassador to five Middle Eastern countries