On the occasion of the official visit to Vietnam by Ukrainian Prime Minister Mykola Azarov, the Vietnam Chamber of Commerce and Industry (VCCI) and the Embassy of Ukraine in Vietnam jointly organised Vietnam - Ukraine Business Forum in Hanoi on November 15, 2012. The visiting Prime Minister was accompanied by executives of 30 leading corporations of Ukraine. Visiting companies operated in various fields like food and agricultural product import, food processing, health, medicine, banking, apparel, footwear, tourism, general trade and investment and had face-to-face meetings with representatives of Vietnamese enterprises.
Delivering a speech to the forum, Prime Minister Mykola Azarov said Vietnam and Ukraine are geographically distant though, their traditional relationships are close. The two countries have made strong growth in all aspects. The two-way trade turnover is low now but it will soon rise.
“Currently, Ukraine is offering favourable conditions to attract investment capital from foreign companies. If two countries share their strengths to complement each other and develop together, the competitiveness of the two economies will increase," he said.
Ukraine is performing major economic reforms in the direction that companies will enjoy tax cuts and see less pressures from the Government. Corporate income tax is set to be reduced to 19 per cent per annum from January 1, 2013. Companies involved in shipbuilding, tourism, services, and power-saving technology are on the list of priority.
He said the two nations can cooperate in such fields as aircraft manufacturing, aerospace, shipbuilding, pharmaceutical, and especially energy. “It is impossible to develop the economy without having energy developed. Ukraine can produce from the smallest to the largest turbines. This partnership will bring many advantages for both sides", he added.
VCCI President Vu Tien Loc said this is the right time to invest in Vietnam and there are many potential projects waiting for both sides. “Vietnam is eager and willing to share with Ukrainian investors because Vietnam is in the process of economic restructuring," he said.
Vietnamese Minister of Industry and Trade, Vu Huy Hoang, said the forum is a good opportunity for companies of the two sides to meet and exchange experience, find opportunities of cooperation, and establish business and investment partnerships.
In recent years, supported by good diplomatic and political relations development, trade and economic cooperation between Vietnam and Ukraine positively progressed. The two-way trade turnover totalled US$300 million in 2011, up 17.1 per cent against the previous year, and reached US$198 million in the first nine months of 2012, up 15.3 per cent year on year. In particular, Vietnam's exports were worth US$153 million, an increase of 13.8 per cent, and Ukraine's exports earned US$45 million, up 15.3 per cent.
Despite such high growth in trade, the outcome remains very modest to potentials and cooperation of the two countries. Bilateral trade revenues account for a small proportion of trade values of both Vietnam and Ukraine. Direct investment in each other’s territory remains small. Meanwhile, the two sides have very favourable conditions to promote cooperation. For example, their exports and import are not competitive but complementary to each other.
“In that direction, at a recent meeting of Vietnam - Ukraine Intergovernmental Committee, the two sides agreed to step up a study on Free Trade Agreement (FTA) between Vietnam and Ukraine. The Vietnam Chamber of Commerce and Industry (VCCI) and the Ukraine Chamber of Commerce and Industry together with businesses of the two countries should further promote trade and product introduction in each other country to seek and build up partnerships, thus contributing to overall cooperation between the two sides. The Ministry of Industry and Trade is ready to facilitate and support cooperation of businesses,” said Minister Hoang.
Quynh Chi
Vietnamese
