Since establishing bilateral diplomatic relations in 1971, Vietnam and Switzerland have always strengthened their friendship and cooperation, particularly in investment and trade. Vietnam is now attracting more Swiss investors than ever, thanks to its good investment environment.
With the goal of becoming an industrialised country by 2020, Vietnam is resolutely pursuing the doi moi (renovation) policy together with consistently implementing expansive foreign policy and international integration. Vietnam has expanded its education ties with many countries in the world, especially Switzerland where the number of Vietnamese students is on the rise. The Southeast Asian nation always attaches much importance to investing in education to train a high quality workforce to increase its attractiveness in the eyes of international investors. Besides, according to many foreign investors, Vietnam stands out with its political and social stability, fast-growing economy, open business environment and perfecting legal system.
Addressing the Vietnam - Switzerland Business Forum recently held in Zurich, Switzerland on his trip to the European nation, President Nguyen Minh Triet said Vietnam encourages Swiss companies to invest in its finance and communications and information technology sectors. In recent years, Swiss businesses have enjoyed many advantages when they do business in Vietnam - a market with numerous business opportunities and large consumption.
According to the report of the General Statistics Office (GSO), Swiss investors invested US$1.38 billion in 61 FDI projects in Vietnam as of December 2008, ranking 19th among countries and territories investing in Vietnam. Particularly, they invested in 29 industrial and construction projects with a combined registered capital of US$538.02 million, five agricultural projects with US$106.8 million and 18 service projects with US$78 million. Swiss companies are investing in 12 provinces and cities in the Southeast Asian nation, but mainly in big cities where the infrastructure is better. The joint venture business form accounts for 65.5 percent of total registered capital and wholly Swiss-invested made up for 34.5 percent, or US$249.09 million.
Currently, Switzerland imports gold, jewellery and agricultural products from Vietnam. Agriculture is another economic cooperation prospect for the two countries. The Swiss side pledges to help Vietnam to recycle its tea, coffee and rice sold abroad. Vietnam also needs industrial machines while Switzerland has rich experience in this matter and Swiss corporations are willing to support Vietnam in this field as well. In addition, Switzerland has very developed services like finance, logistics and shipping, where the two countries can deepen their cooperation.
In 2009, two-way trade turnover reached US$2.6 billion, with a large majority contributed by Vietnam’s strong exports like footwear, apparel, processed foods, aquatic products and electronics components. Vietnam is a prioritised Mekong country for receiving Swiss aid, with US$21.5 million in 2010.
After Vietnam joined the World Trade Organisation (WTO), its international position has strengthened. In 2010, Vietnam is a member of the United Nations Security Council and the President of ASEAN. Mr Jean Daniel Gerber, Swiss State Secretary for Economic Affairs, said: Vietnam has become an attractive destination for Swiss investors. Switzerland attaches great importance to expanding economic relations with Vietnam, which is one of the seven prioritised countries receiving Switzerland’s development assistance. He reaffirmed that Swiss companies have many opportunities to do business in Vietnam, especially in their traditional strengths like banking, insurance, service, tourism and pharmaceuticals.
Kim Phuong
Vietnamese
