Vietnam - Switzerland Economic Cooperation Thrives

 

Switzerland is an important partner of Vietnam in Europe, with an annual trade turnover of US$700-800 million. Currently, many Swiss investors are effectively doing business in Vietnam.

 

Trade cooperation between Vietnam and Switzerland has significantly progressed in recent years, especially since Vietnam has joined the World Trade Organisation (WTO).

 

Vietnam earned US$3.5 billion from exports to Switzerland in 2010, of which gold shipments accounted for 95 per cent. In 2011, the value slid to US$1.5 billion, of which gold exports took up only 10 per cent.

 

The two-way trade turnover totalled US$700.3 million in 2013 and US$1.5 billion in 2015, of which Vietnam's exports to Switzerland valued US$1 billion.

 

Vietnam’s export structure to Switzerland has changed dramatically in recent years. Its machinery and equipment shipments surged, while bullion export made up a tiny share (0.28 per cent of total exports).

 

At present, Vietnam mainly sent sanitary ceramic appliances, leather and leatherette products, footwear, apparels, coffee, rubber, cinnamon, pepper and seafood to Switzerland, and imported pharmaceuticals, chemicals, machine tools, mechanical equipment, boilers, synthetic and artificial filament yarn and natural ceramics from Switzerland.

 

According to experts, the Swiss economy is strong and insignificantly affected by global economic crises. Thus, Switzerland has certain fundamental advantages for developing economic, commercial and industrial ties.

 

As Swiss consumers require products of high quality and humanity, Vietnamese companies must ensure all compulsory standards on food safety, environmental protection and child labour-free production.

 

With the most competitive and creative economy in the world, Switzerland has been contributing to Vietnam’s development. To date, about 100 Swiss companies are operating in Vietnam with a combined investment capital of US$2 billion. Typical corporations include Nestlé (food), Novartis/ Ciba-Sandoz (medicinal chemistry), Roche (pharmaceutical), Holcim (cement), ABB (electrical equipment), Sulzer (mechanical and electrical equipment), Ringier (printing) and SGS (inspection).

 

Switzerland is ranked fourth among European countries investing in Vietnam. Swiss companies not only create jobs, but also bring modern technologies and services with them to Vietnam. Many are exemplary models in vocational training and professional coaching.

 

Driven by rapid trade growth in recent years, Vietnamese and Swiss companies have increased efforts to develop further. And, overseas Vietnamese in Switzerland are actively helping this process.

 

Businesses run by overseas Vietnamese have acted as great bridges for Vietnamese goods to enter Switzerland, especially agricultural products, seafood and foodstuffs. Nevertheless, there are certain limitations in this market such as small market size (8 million people) and stricter quality requirements than other European nations. Needless to say, this is a difficult market where Vietnamese companies must first understand quality standards and competitors.