Vietnam, Luxembourg eye stronger cooperation in trade, investment

There remains ample room for expanding bilateral cooperation between Vietnam and Luxembourg in trade and investment amid the global financial turmoil, said Minister of Industry and Trade Nguyễn Hồng Diên.

Speaking at the Vietnam-Luxembourg Business Forum held in HCM City on Friday, Minister Nguyễn Hồng Diên said, “with the good bilateral relationship, especially in trade and investment, and a large number of small and medium-sized enterprises in both countries, the two nations have favourable conditions to boost their cooperation.”

Vietnam sees Luxembourg as a bridge to the EU and Vietnam will be a bridge for Luxembourg to penetrate into the ASEAN market, he added.

He assured investors from Europe in general and Luxembourg in particular that Vietnam would continue to improve its business climate to protect any foreign investors.

“Vietnam will continue creating the most favourable conditions and safe and transparent investment climate for foreign investors, especially those from Luxembourg,” he said.

It would select investment based on criteria such as quality, efficiency, technology and environmental protection with priority given to projects in the fields of high technology, innovation, research and development, and green and circular economy, among others, he said.

It would also need resources to develop its capital, stock, bond and credit markets, Diên said, expressing his hope to receive experience in those fields from Luxembourg.

Finance, green finance and banking have been the key pillars in the partnership between the two countries, according to Diên.

He said it was vital to mobilise resources to promote green finance, aiming for sustainable and inclusive development towards green growth to respond to climate change and protect the environment.

Vietnam has signed a number free trade agreements (FTAs), such as EU-Vietnam Free Trade Agreement (EVFTA), Investment Protection Agreement (EVIPA) and an agreement on the strategic partnership in green finance signed by both countries.

These trade pacts create favourable conditions for investors from Luxembourg and the EU to expand investment in Vietnam, especially in areas such as engineering, manufacturing, electronics, chemicals, supporting industries, green financial services, banking and logistics, among others.

Speaking at the event, Luxembourg Prime Minister Xavier Bettel said: “Vietnam has become one of the most dynamic economies in the region and the world.”

Vietnam is currently the eighth-largest foreign trade partner of Luxembourg while Luxembourg is also the third-largest European investor in Vietnam.

Luxembourg businesses strongly believe that the relationship between the two countries will grow further in the time ahead, he added.

In the last five years, two-way trade between the two countries has tripled.

In the first quarter of 2023, bilateral trade grew 8.2 per cent year-on-year even in the context of the global economic slowdown.

The forum also saw the signing of cooperation agreements to strengthen trade relations between the Vietnam Chamber of Commerce and Industry (VCCI) and the Luxembourg Chamber of Commerce.

The forum was organised as part of the three-day visit to Vietnam by Prime Minister of Luxembourg Xavier Bettel to mark the 50th anniversary of bilateral diplomatic relations.

Within the framework of the visit, the Luxembourg PM yesterday also visited the Hồ Chí Minh City Stock Exchange (HOSE).

Speaking at the ceremony, the Luxembourg PM said Luxembourg has supported the development of Vietnam’s stock market over the past 22 years, including training experts for the market.

The Luxembourg Government has also supported the Vietnamese Ministry of Finance’s State Securities Commission through a project to develop capital markets in Vietnam, which was the first bilateral development cooperation project between Vietnam and Luxembourg.

The two countries are also working together towards the establishment of a bilateral strategic partnership in green finance, aiming for sustainable and inclusive development, and implementing circular economy towards green growth.

As of March, Luxembourg had invested in 64 projects worth US$2.6 billion in Vietnam, ranking third among 24 EU countries and 17th out of 139 countries and territories investing in Vietnam.

Two-way trade reached $96 million in 2019, $110.7 million in 2020 and $181.6 million in 2021, up 64 per cent, after the Vietnam-EU Free Trade Agreement took effect.

Last year, the figure reached $187.1 million, a surge of 69 per cent over 2020, with Vietnam’s exports totaling $130.14 million.

Source: Vietnam Economic News