The Vietnam - Hunan (China) Investment Cooperation Forum recently held in the Vietnamese capital of Hanoi witnessed Vietnamese and Hunan (China) companies to ink cooperation agreements worth US$36.7 million. A representative of the Foreign Investment Agency under the Vietnamese Ministry of Planning and Investment said this forum was a good chance for enterprises - “economic ambassadors" - to learn about market demands, seek and discuss opportunities of investment and cooperation in Vietnam. This was also an opportunity for the State management agencies of Vietnam and China to better understand what the investors need in order to create more favourable conditions for them to invest and do business.
Major trading partners
Mr Mei Kebao, Deputy Secretary of Communist Party of China in Hunan Province, China, said: Vietnam and China are close neighbours, have cultural similarities and long-standing friendship. Hunan Province is an important province in China and the hometown of President Mao Zedong. In the light of nice tradition of "Vietnam and China - the two countries of friendship, comradeship and brotherhood,” the province has continuously promoted cooperation with Vietnam. In 2001, Hunan province and Nghe An province - the hometown of President Ho Chi Minh established friendship relations. To date, Hunan has signed cooperation agreements with three Vietnamese cities.
Mr Mei added that Hunan has a long history, characteristic culture and convenient traffic system location: lying in the key position that links the north with the south and the west with the east of China, and having a modern traffic system with roads, railways, ports, airports and other facilities.
In particular, Hunan has a solid foundation of industry. The province has formed a complete industrial system and trained workers for various fields construction engineering, automotive manufacturing, iron and steel production, nonferrous metal processing, railway transportation, electrical information, tobacco, foods, biological products, creative culture, modern agriculture and others. In 2010, the province’s GDP reached 1,590 billion yuan, up 14.5 percent over the year earlier, ranking 10th out of Chinese provinces and cities.
"Hunan is near Vietnam and has potentially cooperative areas thanks to its rich resources, industry structure, highly complementary market, especially machine manufacturing sector, textile, mining, modern agriculture, importing, exporting, trading, architecture, interactive science education exchange. So far, the provincial government of Hunan has always attached importance to boosting exchange and cooperation with Southeast Asian partners, including Vietnam,” said Mr Mei.
Mr Liu Jie, Director of Hunan Trade Department, said: Vietnam is an ASEAN member and is an important partner of China as well. In 2010, Hunan’s trade revenue with Vietnam reached US$250 million, of which its exports [to Vietnam] were US$230 million. Hunan’s main exports to Vietnam include automobile chasses, steel and transformers while its main imports are cotton, natural rubber and timber. In 2010, Hunan companies undertook a contract worth US$20 million in Vietnam.”
By the end of 2010, 45 Hunan companies invested in Vietnam. Contract value [between the two sides] reached US$87.3 million, of which US$64.94 million came from Chinese enterprises, mainly channelling into such fields as mechanical engineering, textile, chemical, mining, and agricultural foods. Vietnam became the 8th largest exporting market of Hunan and is the largest partner of trade, construction and labour services in Southeast Asia.
Actively promoting cooperation
Mr Liu said capturing new opportunities generated by free trade trend, Hunan strengthened foreign relations development, focused on Vietnam and further expanded cooperation with ASEAN, and comprehensively developed cooperative achievements.
Accordingly, Hunan will actively expand trade and investment cooperation. On the one hand, it supports its enterprises to import important commodities from Vietnam and ASEAN like industrial products, agricultural products, energy and raw materials. On the other hand, by means of attending trade fairs in China and other countries, it will set up diverse forms of cooperation to boost export Hunan’s key products like machinery, mining machines, agricultural machines and crossbred rice. It will also assist its enterprises to expand investment and projects in other nations, cooperate in labour services, etc.
"Hunan will provide more information for businesses investing in ASEAN in general and Vietnam in particular, simplify exit and entry procedures, open new transport routes to ease travelling of businesspeople, intensify cooperation with government agencies, embassies, economic counsellors of China in ASEAN countries and Vietnam to establish a comprehensive cooperation mechanism, promote healthy development for its enterprises to invest in foreign nations,” he said.
According to Mr Nguyen Noi, Deputy Director of Foreign Investment Agency under the Vietnamese Ministry of Planning and Investment, the Government of Vietnam is determined to accelerate and facilitate all economic sectors to do business, build the more complete legal system, and ensure transparency and conformity with international business standards. Vietnam has preferential policies for foreign investors investing in infrastructure, high technology, export-oriented production, manufacturing, supporting industry and human resource development projects.
"Within the scope of our functions, we are willing to exchange information and committed to supporting and creating favourable conditions for Chinese enterprises to explore business opportunities in Vietnam, thus helping strengthen economic cooperation and close traditional friendship of the two nations. We understand that each businessman is “economic ambassadors” when he/she do business and plays a part in building long-standing friendship relations between the two nations,” Noi said.
Quynh Chi
Vietnamese
