29.08.2016 / Bulgarian National Pavilion in Shanghai Free Zone

FOCUS: Mr. Gelev, the inauguration of a Bulgarian national pavilion in the Shanghai Free Zone is forthcoming. Tell us a little more about him.

Vasil Gelev: The initiative to open Bulgarian pavilions in China started last year with the first one in Hangzhou. It was opened by Deputy Minister of Agriculture and Food Vasil Grudev on October 25 in the Hangzhou Free Zone. Shortly afterwards, at the initiative of Minister Desislava Taneva, a campaign was launched to collect and provide Bulgarian agricultural products and samples of them in the pavilion with a view to making promotions and tastings for Chinese stakeholders – importers, distributors and more. Within a very short time after the opening of the pavilion with the help of operators and local authorities in Hangzhou, we were able to organize a delegation from China, which signed more than 13 trade contracts during its stay in February this year. The quantities of Bulgarian agricultural production that we managed to sell amounted to about 4 containers that were transported and are currently being successfully traded in China.

The second Bulgarian pavilion will open on the 25th of this month in the Shanghai Free Trade Zone. Free Trade Zones in China are an initiative of the Chinese government since 2014 as a successful model for trading and entering foreign companies into the Chinese market. It is currently implemented in most of China’s provincial cities, with the first such zone being in Shanghai, so our goal was to have our point there. Again, at the initiative of the Ministry of Agriculture and Food, we organized the dispatch of products. They were successfully delivered and will be tasted by Chinese stakeholders during the official opening. The amount sent is more than 2500 kg, and more than 40 Bulgarian companies have participated, so the initiative is quite large-scale. We hope that the results will exceed the results of the first pavilion. With Shanghai’s capacity, I am sure that the success for Bulgarian manufacturers will be much greater there. On the 25th, we are planning to have a telecast with Shanghai in Burgas, through which Bulgarian officials and business representatives congratulate their colleagues in Shanghai, thus launching the sale of Bulgarian products in China. More than 300 people are expected to take part in the ceremony, including the Mayor of Shanghai, local authorities, free trade representatives, operators and more. The ceremony will be officially hosted by the Consul General of the Republic of Bulgaria in Shanghai, Dimitar Abadzhiev, and an employee of the Association for the Promotion of Agricultural Cooperation between China and the Central and Eastern European countries.

FOCUS: How long will the Shanghai Pavilion operate?

Vasil Gelev: The national pavilions that open in free trade zones are an extremely interesting model, re-launched by the Chinese government. They are not time-limited but are permanent explosions within which importers, distributors and direct consumers have the opportunity to taste and order products. The contract for the Bulgarian pavilion, which we have with the free trade zone, is for a period of 5 years, during which time it will welcome guests and interested persons. The Bulgarian side managed to negotiate extremely privileged relations not only for Bulgaria but also for the countries of Central and Eastern Europe, so we are not committed to paying a monthly rent or any expenses for the maintenance and operation of the pavilion. Our only cost was to decorate it.

FOCUS: How many Bulgarian companies will present their products in Shanghai and what kind of goods will be displayed?

Vasil Gelev: I agreed with the local authorities that the participation of Bulgarian companies should be free and voluntary, so there is no limit to the number of companies that will be part of this initiative. On the contrary, we encourage every producer to contact us; we will provide him with the necessary assistance. So far, we have more than 40 companies that have successfully sent their samples. The delivery was fully organized by the Association at the initiative of Minister Taneva.

The pavilion will feature Bulgarian wine, honey and products of our food industry – pastry and confectionery, fruit, soft drinks, mineral water and juices. Indeed, Bulgarian producers have sent a wide range of products. The share of Bulgarian cosmetics is also serious. Along with the pavilion, which opens on the 25th in Shanghai, the Bulgarian Rose Pavilion is to be opened as an immediate part of the exposition, which will be fully subject to the Bulgarian rose and products containing this type of raw material. Each product has a place in the Chinese market as the Chinese consumer is extremely curious.

FOCUS: Can more companies participate in the pavilion and how can this be done? What criteria should they meet?

Vasil Gelev: Criteria are not set, participation is free and voluntary. Each Bulgarian company has the opportunity to send samples to China. APACCCEEC and the Bulgarian Food Safety Agency shall provide the necessary assistance in the preparation of the documents and the export of the goods. All structures in Bulgaria that are somehow involved in this initiative are working in synchrony so as to make the participation of Bulgarian companies as simple and effective as possible.

FOCUS: What other important projects are facing the APACCCEEC?

Vasil Gelev: Immediately after this campaign, we will focus all our efforts on continuing another initiative that we started with the Ministry of Transport and the Port of Burgas – the opening of the Logistics Hub and Pavilion 16+1 at the Port of Burgas. The idea is through e-commerce and the agreement concluded with the Chinese state agency to make it possible to trade agricultural goods from Bulgaria and the countries of Central and Eastern Europe through e-commerce in China, as this share of the Chinese economy is extremely fast growing and a branch of the economy has already grown into an industry that generates more than $ 900 billion annually. I hope to make trade in Bulgarian agricultural products possible in China in the short term. The year has been quite dynamic and I hope that in the last months we can make an analysis of the result and that it will be positive.

FOCUS: Mr. Gelev, what are the benefits for our country of cooperation with China in the field of agriculture?

Vasil Gelev: The benefits for our country are yet to be analyzed. Very little time has passed since the first pavilion started operating, but given the experience we have from it, I am sure that in the short term we will significantly increase the trade balance not only between Bulgaria and China, but also between the countries of Central and Eastern Europe and China. I have repeatedly said that in order for us to successfully cooperate between China and the countries of Central and Eastern Europe, we must first secure this infrastructure. My focus when I started as an Executive Director of the Association was to have as many points of sale as possible where our agricultural products can be traded.

Vasylena YORDANOVA, FOCUS News Agency