With many meetings and exchanges held, the "Vietnam - Austria Business & Trade Exchange Forum" recently organised by the Ho Chi Minh City Branch of the Vietnam Chamber of Commerce and Industry (VCCI – HCM), in collaboration with the Embassy of Austria in Ho Chi Minh City, offered a good opportunity for Vietnamese businesses to learn about the Austrian market, discuss with Austrian businesses issues of common interest, and set up long-term business cooperation ties.
Speaking at the forum, Mr Vo Tan Thanh, Director of VCCI - HCM, said that Austria was one of the first western countries to establish diplomatic relations with Vietnam in 1972 – at the time when the American war was not ended. In the past years, the bilateral friendship and cooperation have been constantly developing, demonstrated by frequent high-level visits, especially after 1995.
In economic development cooperation, in recent years, Vietnam's exports to Austria expanded faster than in previous periods, but the results fell short expectations of the two countries. Austria is one of a few European countries to have a stable economic growth, especially in the current context of economic crisis. The Austrian Government also advocates Asian market-directed policies, a good opportunity for Vietnamese and Austrian businesses to promote commercial activities. Currently, Austria has high demand for furniture, vehicles, food, spices, electronic components and others. The supply of these items is within the reach of Vietnamese enterprises.
In addition, Austria and Vietnam have strengthened energy cooperation. Currently, Austrian companies are searching for investment cooperation opportunities in Vietnam. With its focus on export of high-quality products, Austria is willing to cooperate and share experience with Vietnam in such fields as energy, manufacturing and construction consultancy. Austrian companies are strong in manufacturing, energy, railway, seaport, waste treatment and food processing technology, among others. These fields are still the weaknesses of Vietnam; hence, cooperation and experience sharing are essential.
He said: "Vietnam and Austria take their similarities as a basis for promoting relations, stick to the basic principles of international relations of independence, peace, cooperation and development, and have potentials and economic structure which complement each other. All this promises to open a new era for continued good relationship between the two countries."
Mr Gerhard Schlattl, Commercial Attaché at the Austrian Embassy in Vietnam, said, with a young population, dynamic economy and high consumer demand for quality products, Vietnam is gradually becoming a potential market for Austrian businesses. However, Austria’s investment in Vietnam is still very modest in relation to the actual potential of the two countries. This fact will certainly change in the near future because infrastructure systems, public administration reform, human resources, and investment policies in Vietnam are gradually being improved, and Austrian businesses are now turning more attention to this country. He stressed: "With ongoing changes and efforts, Vietnam will certainly become an investment magnet in Southeast Asia in the near future."
After this business forum, a delegation consisting of Austrian railway technology companies will visit Vietnam in May 2013 to survey markets and seek opportunities of investment and business. In early June, another group of water technology companies will arrive in Hanoi and Ho Chi Minh City in search of business partners. With a series of promotion events to be held in the coming time, Vietnam - Austria trade - investment cooperation ties will be improved and the two business communities will get closer and more connected in business cooperation.
At present, the bilateral trade is positively progressing, with average annual growth of 15-20 per cent in recent years. Notably, Vietnam continuously enjoys a surplus in trade with Austria. In 2012, the two-way trade turnover totalled over US$1.2 billion, an increase of 195 per cent over 2011, of which Vietnam earned over US$1 billion and Austria took US$157.46 million.
Vietnam’s major exports to Austria are wooden products, apparels, footwear, machinery, equipment, phones and accessories. Meanwhile, the Southeast Asian country imports animal feeds and raw materials, pharmaceutical inputs, paper, iron and steel.
Austria now has 21 valid investment projects worth US$27 million in Vietnam, ranking 50th among 91 countries and territories investing in Vietnam, and 10th among EU nations. Project capital averages US$1.7 million. They are mainly small scale, focusing on processing and manufacturing industries, accommodations, catering services, arts and entertainment.
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