Vietnam, Czech Republic see promise of stronger investment and trade links

Vice President of the Vietnam Chamber of Commerce and Industry (VCCI) Vo Tan Thanh said the Vietnamese and the Czech economies are developing rapidly and becoming deeply integrated into the world economy, which presents a wealth of opportunity for broader bilateral cooperation in economics, trade, and investment.

The Czech Republic is one of Vietnam’s largest trade partners in Central and Eastern Europe, with bilateral trade turnover having exceeded more than US$257 million in 2017. Of that figure, exports from Vietnam to the Czech Republic brought in more than US$151 million and imports from the Czech Republic to Vietnam hit worth US$106 million.

In the first two months of 2018, import-export turnover between the two countries neared US$50 million, a 31.3% increase over the same period last year. Vietnam’s major exports to the European nation include footwear, garments and textiles, mobile phones, electronic components, and agro-fishery-forestry products, while the country primarily imports machineries, equipment, mechanicals, pharmaceuticals, and crystal products.

To the end of February 2018, the Czech Republic had run 36 investment projects in Vietnam with a total registered capital of more than US$90 million, ranking 49th out of the 126 nations and territories investing in Vietnam. Vietnamese businesses have also invested in four projects valued at US$4.5 million operating in the Czech Republic.

Mr Thanh said these results have not yet matched the two nations’ full potential and strength of each nation. Businesses have lacked close collaboration due to insufficient market information.

Vladimir Bartl, Deputy Minister of Industry and Trade of the Czech Republic said Czech businesses have advantages in fields such as energy, infrastructure construction, automation, financial and insurance services. In addition, they have experience in urban development planning, and public transport operation, which are of Vietnam’s priorities for development.

Vietnam is seen as an important partner and highly-lucrative market in the Czech Republic’s business expansion strategy in Asia, he said.

The trade official also expressed his nation’s wish to cooperate with Vietnamese partners in mechanical manufacturing energy, cement and building material production, medical equipment supply, aviation, and environmental protection.

Vladimir Bartl said the promotion of bilateral trade ties will enable both nations to capitalize on their respective market and expand market shares in Europe and Asia.

Experts at the seminar underlined the need to enhance connectivity between businesses, and boost trade and investment activities by carefully studying the market of each side in order to grasp investment cooperation opportunities for more effective business operations.