For the Success of Norwegian Investors

Mr Do Nhat Hoang

Since the establishment of diplomatic relations between Vietnam and Norway in November 1971, the friendship and cooperation between the two countries have continuously strengthened. Norway has assisted Vietnam in economic renovation, poverty reduction and international integration. The two countries have exchanged high-level working visits and cooperated most effectively in multilateral forum such as the United Nations, WTO and WB.

 

Bilateral cooperation has been resumed with the signing of frame agreement on development cooperation in June 1996. So far, Norwegian grant aid to Vietnam amounts to some US$200 million (on average of US$10 million a year) focusing on education, public management and economic development, especially private sector. Though the aid amount is not big, it is most effective, flexible and suitable to Vietnamese conditions. All the projects are in smooth implementation with a high percentage of disbursement (around 90 percent) and most practical for Vietnamese people.

 

 Norway has 25 FDI projects in Vietnam with total registered capital of US$84.2 million, ranking 38^th among 92 countries and territories investing in Vietnam and2^nd among Nordic countries after Denmark. However, it remains below the potential and advantages of the two countries. Therefore, I believe that the two sides should promote bilateral cooperation and investment to a new height.

 

Norwegian FDI in Vietnam focuses on the processing and manufacturing industries, accounting for 49 percent of Norwegian investment capital in Vietnam, followed by agriculture-forestry-fisheries (47 percent).

 

Some big Norwegian companies operate in Vietnam, such as ODIM ASA investing US$20 million in manufacturing automatic loading equipment in ODIM Vietnam Co., Ltd; Jotun A/S N investing US$10 million in manufacturing drilling platforms and paint for sea-going ships in Jotun Vietnam Co., Ltd; and Marine ASA investing US$20 million in aquaculture in Khanh Hoa province. All projects are operating efficiently.

 

We think that the investment pattern suits the comparative edge of Norway and the investment policy of Vietnam to attract advanced technology for industrialization and modernization.

 

However, Norwegian investment in Vietnam is generally still modest, with small projects.

 

Progress has been made in bilateral cooperation between Vietnam and Norway in recent years, especially after President Nguyen Minh Triet’s visit to Norway in June 2008. The two sides have agreed to increase investment cooperation in accordance with the potential of the two countries. Vietnamese government always facilitates Norwegian investments on the basis of mutual benefit, especially in areas of Norwegian comparative advantages.

 

The two sides have signed important agreements on non-double taxation and non-smuggling (1995), agreement on general conditions and formalities for bilateral development cooperation (October 1996), agreement on economic and trade cooperation (1997), and civil aviation agreement (1997). Those agreements have promoted investments from Norway to Vietnamand vice-versa.

 

We understand the Norwegian government plans to increase cooperation with Vietnam in many fields. The two countries have developed a good foundation for better relations and share many similarities in developing sea-based economy as a spearhead economic sector. We welcome to invest in Vietnam companies in strong Norwegian industries like ship-building, energy, especially new and clean energy, renewable energy and agriculture and aquaculture processing.

 

With Norwegian economic potential and Vietnamese improved investment environment, as well as exchange of information between businesses on the occasion of the 40th anniversary of diplomatic relations, we expect new developments in bilateral economic cooperation between the two countries.

 

In which areas do you encourage Norwegian investment and what measures will promote Norwegian investment in particular?

Norway has comparative edge in sea-based economy, gas and oil, processing and manufacturing industries, agriculture and infrastructure. Those are also areas where Vietnam is encouraging foreign investment. Norwegian companies can invest in coastal economic zones, hi-tech parks and other industrial zones from oil and gas, maritime industry, ship-building to clean energy, all Norwegian comparative advantages. They will have access to an attractive market of over 85 million people with a young population, connected with the larger ASEAN market of over 600 million people and further on to free trade areas of ASEAN-China, ASEAN-Japan and ASEAN-Korea.

 

Vietnam continues high GDP growth, pushing infrastructure development. Norway has good opportunities to invest in energy projects, especially new and renewable energies. The infrastructure investment in Vietnam in the next 10 years will be US$250 billion, or 11 percent of Vietnam’s GDP each year, while Vietnamese budget can meet only half of this demand. Clearly, it is a great opportunity for Norwegian investors in developing highways, railways, seaports and airports.

 

In the process of diversification and development of multilateral relations, Vietnam always considers Norway and EU important partners in trade, ODA and FDI.

 

To promote foreign investments, including those from Norway, Vietnam will open the market in compliance with bilateral and multilateral commitments and continue to improve the legal system and policy with equality, transparency and accountability in line with international standard. Vietnam is making every effort to upgrade infrastructure, transport, urban areas, seaports, airports, hospitals and schools. It is also developing human resources and accelerating administrative reform to save time and money for investors and increase their competitiveness in Vietnam.