Malaysia Set to Enhance Trade and Investment Relation with Vietnam

Fifteen captains of industries from Malaysia and 14 leading companies of Vietnam joining the roundtable meeting, chaired by the Honourable Tan Sri Muhyiddin Yassin, Deputy Prime Minister of Malaysia, and Vietnam’s Deputy Prime Minister Hoang Trung Hai, organized by Malaysia External Trade Development Corporation (Matrade) on October 18, 2013 in Hanoi.

The event successfully created a harmonious environment for enterprises of the two countries to better understand each other’s investment environment and encouraging more confident to develop bilateral investment and trade.

Businesses participating this seminar focus on the main areas of oil and gas, information technology, energy and regional cooperation development, agriculture, construction, lifestyle, banking and real estate.

In his keynote address, Deputy Prime Minister Hoang Trung Hai highlighted great efforts of both the Government and the business community of Vietnam in recent years to overcome the economy’s current difficulties and obtain positive macroeconomic results. “Vietnam is currently conducting six free trade agreement negotiations for with regional and world-leading economies. When the negotiations are completed, Vietnam is expected to be an important link of the large-scale economic chain of ASEAN as well as Asia-Pacific region. With the important strategic position, Vietnam will be an ideal connection for ASEAN Economic Community by 2015,” Deputy Prime Minister said.      

Vietnam and Malaysia are dynamic market economies that depend on international trade for stimulating economic growth. Strong global connections and improved access to markets are fundamental to the economic strategies for both countries. With this in mind, the Governments of Vietnam and Malaysia will continue to pursue active trade by utilizing ASEAN Free Trade Agreement (AFTA) as tools for trade development and policy agendas as well as take part in the regional and global trade liberalization and economic reform. Both countries have a longstanding and healthy bilateral relationship under the ASEAN spirit.

According to Deputy Prime Minister Hoang Trung Hai, as of September 2013, Vietnam attracted more than 15,000 foreign-invested projects from 100 countries and territories with the total disbursed capital of more than US$100 billion, and these projects have actively contributed to the growth of Vietnam’s economy.

“Malaysia is one of ASEAN important partners of Vietnam, with 444 projects invested in Vietnam with the total capital of over US$10 billion, raking 8^th among investors from all over the world. More importantly, the Vietnamese Government appreciates the quality and effectiveness of Malaysian projects which have involved in almost all economic sectors of Vietnam with the average capital of US$23 million per project. The Malaysian projects in the fields of processing and manufacturing industries account for the largest percentage of investment.”     

Malaysia is the third largest trade partner of Vietnam among ASEAN and the ninth largest trade partner in the world.

AFTA is likely to boost trade between Vietnam and Malaysia in 2013 and fully liberalized trade duties by 2015. It will provide an excellent platform for Vietnam’s exports and imports. Given existing trade patterns, the impact on both Vietnam and Malaysia domestic producers by removing bilateral trade barriers in protected sectors should also be limited to a few sectors so that it is manageable under appropriate transitional measures.

Nam Pham