Following the success of the Vietnam-Spain Investment and Business Forum in 2008, nearly 180 Vietnamese and Spanish businesses participated in the Business Forum 2010 held recently in Ho Chi Minh City.
It was sponsored by the Spanish Foreign Trade Institute, the Economic and Trade Division of the Spanish Embassy in Vietnam and the Trade and Investment Promotion Centre, Ho Chi Minh City to create more opportunities and partnerships for financial, industrial and technology businesses of the two countries. The event was also aimed to increase bilateral cooperation in joint ventures and investment in new areas, technology transfer, franchising and outsourcing. On November 23 and 24, some 200 business meetings and several seminars were held between businesses of the two countries.
Though fewer than in the last forum, the 30 Spanish companies participating this time are big companies of famous brands such as Mondragon, Adolfo Dominguez, Befesa, Logisfashion, Lealelo,Millard Filters, Iberica and Sampol. Each of these companies had turnover of over US$5 billion in 2009 and seeks business opportunities in Vietnam setting up companies or manufacturing in the Vietnamese market. They are ready to invest their financial resources, brands and technology in Vietnam and expand to other countries, especially the economically dynamic ASEAN region.
In recent years, Vietnam and Spain have recorded important advances in mutual understanding and cooperation. Two-way trade value has increased from US$250 million in 2001 to US$1,434 million in 2009, with Vietnamese export value of over US$1,200 million and Spanish export value of US$159 million. In the first seven months of 2010, the bilateral trade value was US$650 million, 6 percent more than the same period last year. Main Vietnamese exports are footwear, garment, coffee, aquatic products and furniture. In the Spanish market, Vietnamese exports make up 45 percent in coffee, 12-15 percent in garment and 30 percent in aquatic products. Even in conditions of economic recession, Vietnamese exports to Spain remain attractive with competitive prices. In return, Spain exports to Vietnam various products including chemicals, steel, machines, electronics, leather and building materials.
According to Mr Alberto Cerdán, Commercial and Economic Counsellor at the Spanish Embassy in Vietnam, Spain ranks 56th among 93 countries and territories investing in Vietnam. So far, Spain has invested some US$25 million and 12 projects in Vietnam, mainly in industrial manufacturing, fashion, sea-products, building materials and home appliances. Spanish FDI remains modest in Vietnam. However, with higher labour cost in China, Spanish businesses are starting to shift investments to Vietnam. In the coming years, Vietnam-Spain economic cooperation will increase in both scale and scope.
Speaking at the forum, Mr Alberto Cerdán appreciated the high economic growth rates of Vietnam and especially the continued Vietnamese government efforts to improve the investment environment for Spanish and other foreign investors. Those efforts have greatly encouraged Spanish businesses to invest more in Vietnam. While in the past, Vietnam was regarded as a gateway to Asian markets, Vietnam itself, now with nearly 90 million people, is already an important market for Spanish businesses. Many Spanish companies are highly interested in the growing, dynamic Vietnamese market, wishing to promote cooperation in producing and exporting footwear and garments to Europe and Asia. Spanish companies also wish to cooperate with Vietnamese partners in building projects in Laos, Cambodia and Thailand.
According to Ms Nguyen Thi Bich Van, Deputy Head Foreign Investment Agency, Spanish businesses are highly competitive in public-private cooperation and market understanding. They are also strong in supplying equipment. Therefore, Vietnam encourages them to supply hi-tech equipment to projects in Vietnam. So far, Spanish businesses invest only in labour-intensive projects. Ms Van hopes that the forum will raise the interest of Spanish businesses in big infrastructure development and modern technology projects in Vietnam.
For his part, Spanish Ambassador to Vietnam, Mr Fernando Curcio, believes that after the forum, Spanish businesses will increase their cooperation and investment in Vietnam. The Ambassador said that Spanish businesses have seen the opportunities in infrastructure development in Vietnam, but their problems are how to get sufficient capital for the projects when Vietnamese resources and ODA are limited and public-private partnership (PPP) is not applied widely in Vietnam. Big Spanish construction companies plan to come, but they need some time to study the market. Spain will finance, together with others, the building of the fifth sub-way line in Ho Chi Minh City.
Idom Ingenieria Consultoria S.A (Spain) together with Vietnamese partners have almost completed the feasibility study. It is a big project financed by Spanish ODA worth Euro500 million. In early November 2010, the Spanish Bank BBVT has agreed to an additional loan of Euro100 million for the project. Idom Ingenieria Consultoria S.A. and GDF are implementing the project under the EPC form. With this project, Spain wishes to build a modern sub-way similar to that of Madrid to attract more Spanish FDI in Vietnam. Spain also plans to build two more important projects: Ke Ga seaport for socio-economic development in Central Vietnam and a 90 hectare container port in Hiep Phuoc.
In addition, some Spanish economic groups have also participated in the development of railway projects in Ho Chi Minh City.
Hong Thanh
Vietnamese
