Switzerland and Vietnam established diplomatic relations in October 1971. Switzerland was among the first Western countries to look to the future and establish friendly and cooperative relations with Vietnam. Over the years, the bilateral economic, trade and investment cooperation has been expanded and developed in many areas, and has recorded outstanding success.
Much room for cooperation in trade, investment and tourism
Despite the trade volume increasing five-fold during the past decade, the exchange of goods between Switzerland and Vietnam remains marginal. According to Swiss trade statistics, the volume amounted to CHF 305 million (around US$235 million) in past years, with a deficit for Switzerland of CHF 82 million (around US$63 million). Switzerland imported mainly shoes (31 % of imports), agricultural products (28 %), as well as textiles and clothing (8 %) from Vietnam. The three major Swiss products exported to Vietnam are machinery (30 % of exports), chemicals (21 %) and pharmaceutical products (22 %).
With Vietnam's accession to the WTO one can expect the market to open up and trade between Switzerland and Vietnam to intensify.
To date, Switzerland has invested around US$670 million in Vietnam, ranking fourth among European investors, and creating more than 25,000 jobs. The investments are concentrated in four sectors: construction, food, mechanics, and the pharmaceutical/chemical industry.
Holcim, a Swiss cement producer, is by far the largest Swiss investor in Vietnam. Active in Vietnam since 1994, the company has successfully engaged in the burgeoning construction sector. Nestlés ranks second in terms of invested capital, followed by ABB.
In 2005 the Swiss Government founded the Swiss Business Hub ASEAN, located in Singapore. The objective of the SBH ASEAN is to provide services for Swiss SMEs interested in doing business in South East Asia. It is made up of the Swiss Embassy in Hanoi, together with the other Swiss Embassies in the region.
The Swiss Business Association (SBA) and the Swiss-Asian Chamber of Commerce (SACC) are private organisations aiming to promote Swiss business with Vietnam. The SBA, based in Ho Chi Minh City, has around 60 members, whereas the Zurich-based SACC counts over 200 member companies.
Tourism has become a booming business between Switzerland and Vietnam. In recent years Swiss tourists visiting Vietnam have increased to an impressive figure, with some 15,000 people. The trend is positive. To meet the growing demand for professional tourism services in their country, many Vietnamese are being trained at the renowned Swiss hotel management schools. Moreover many Vietnamese tourist companies organise trips and are raising the number of Vietnamese to go to Switzerland year by year.
Supporting Vietnam’s reform through development cooperation
Swiss Official Development Assistance (ODA) in Vietnam started in the early nineties with the objective to support the political and economic reform process. Since the mid-eighties, Vietnam has been facing the challenge of achieving its political reform and economic development based on the revised roles of the State, the private sector and civil society. Furthermore Vietnam is committed to ensuring social development and to reversing the increasing deterioration of its natural resource endowment. Under the Doi Moi (innovation) reform process which started in the mid-eighties, Vietnam has achieved impressive poverty reduction.
Swiss Development Cooperation in Vietnam is a joint programme between the Swiss Agency of Development - SDC and the Swiss State Secretariat for Economic Affairs - SECO. The overall objective of the program in 2002 - 2006 is to support the ongoing transition process in Vietnam by further developing an equitable and participatory society; an open and market-oriented economy; and sound management of natural resources.
The Swiss Development Program in Vietnam is focusing its support on the following four main areas: Urban Governance and Infrastructure; Private Sector Development; Integration into the World Economy; and Natural Resource Management.
Switzerland executes its Development Cooperation Program with the help of internationally operating Swiss NGOs and Swiss consulting companies, multilateral and UN organisations, as well as local institutions. (Swiss Embassy)
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