Czech Priorities in Promoting Trade & Investment Cooperation with Vietnam

The Czech business delegation to Vietnam this time focused on searching for partners in the fields of development, construction consultancy of infrastructure; financial arrangements and provision of commercial services; producing equipment and services for research and nuclear power plants; chemical manufacturing, petrochemical and oil filters for heavy industrial products, oil tankers; providing aeronautical services; air traffic management, providing search and rescue services and aeronautical information services; fruit and vegetable processing, construction and installation of storage and cold storage; building and technology transfer chilled, small hydropower plants; agricultural projects and production lines.

 

Speaking at the forum, Czech Industry and Trade Minister Martin Kuba said that the business community of the Czech Republic has put Vietnam on the list of 12 countries of priority for the Czech Republic to promote trade and investment cooperation. Currently, Czech businesses are willing to cooperate with Vietnam in the areas of energy, transport, engineering and manufacturing.

 

"Friendly relations and potential between the two countries are not confined to each national market. The Czech Republic will be an important gate for Vietnamese goods exported to the European market; the Czech enterprises will also help Vietnamese enterprises to seek investment cooperation and opportunities in European markets, including the Czech Republic. In return, Vietnam can also be an important focal point for exports from the Czech market to penetrate Southeast Asian countries,” said Minister Martin Kuba.

 

According to Dr Vu Tien Loc, VCCI President, Vietnam and the Czech Republic have good traditional friendship. Today's Czech Republic, and the former Czechoslovakia, has always supported Vietnam in the protection and construction of the country. Vietnam and the Czech Republic have constantly expanded comprehensive cooperation, standing side by side with each other in international forums. In addition to the factors mentioned above, the strong friendship between the two countries is also reflected in the growth of the Vietnamese community living and doing business in the Czech Republic, as well as the Vietnamese community studying and working in the former Czechoslovakia, which is an important factor contributing significantly to the development of the relationship between the two countries.

 

In recent years, economic and trade relations between Vietnam and the Czech Republic have enjoyed steady growth, even in 2012 when Vietnam and the European countries suffered from the economic crisis, trade turnover between the two countries grew slightly. The main export commodities of the Czech Republic to Vietnam are iron and steel products, machinery and equipment, tools, and spare parts; while Vietnam exports to the Czech Republic textiles, footwear, seafood, machinery, equipment, tools, candy and cereal products, and means of transport. New exports since 2011 are phone and parts.

 

Dr Loc affirmed that VCCI is ready to work closely with Czech development promotion organizations for stronger cooperation between the business communities of the two countries.

 

Ms Ho Thi Kim Thoa, Vietnamese Deputy Minister of Industry and Trade, said that the Czech Republic is among the largest customers of Vietnam in Eastern Europe. According to 2012 data, two-way trade reached US$242.1 million, up 10.1 percent compared to 2011 and at its highest level ever. In particular, Vietnam exported to the Czech Republic US$180.05 million, the same as the turnover in 2011. However, imports from the Czech Republic reached an impressive increase of 70 percent, up to US$62.02 million compared to US$37 million in 2011. Vietnam has a trade surplus with the Czech Republic, but shrinking value.

 

Ms Thoa said that by December 2012, the Czech Republic had had 27 investment projects in Vietnam with total registered capital of US$65.5 million, ranking 48th out of 98 countries and territories investing in Vietnam. The projects focus on the fields of crystal glass, beer, electrical equipment and building materials. Vietnam has 4 registered projects in the Czech Republic with total capital of US$5.3 million, focusing on real estate and building materials.

 

"Currently, the Vietnamese government continues to promote the institutional and administrative reforms to meet the economic requirements of the market and the demands of international economic integration, creating an open environment of transparency, more favourable to trade and investment activities of enterprises. Fundamental strengths are also attractions of business investment environment in Vietnam for the Czech Republic,” Ms Thoa said.