Vietnam - Hungary Business Forum: Joint Efforts to Promote Investment and Trade

Sectors that Hungarian businesses want to cooperate with Vietnamese businesses include information technology, education, vocational training, health care, pharmacy, biotechnology, chemical, food, pesticides, water cleaning, waste water treatment, environment, energy, automation, infrastructure construction, transportation, maps, machines in steel industry, laboratory equipment, investment and business consulting and general commerce.

 

Speaking at the forum, Vice Minister of Industry and Trade Tran Tuan Anh said the participation and exchange of businesses at this Forum will bring new opportunities for bilateral investment and trade. This also demonstrates the huge economic potential between the two countries.

 

Statistics show that, over the years, the cooperation between the two countries have achieved significant progress, bilateral turnover growth is 10 percent per year, reaching US$150 million in 2013, Vietnam’s main exports are computers, electronic components, textiles, transport, plastics and wood products. Imported goods from Hungary are mostly machinery, pharmacy and fodder.

 

In terms of investment, by December 2013, the total capital investment of Hungary in Vietnam was US$50 million with 13 projects, ranking 53^rd out of 101 countries and territories investing in Vietnam.

 

According to Tran Tuan Anh, the figures are still not commensurate with the potential and can not meet the demand of two sides. Therefore, in the future, two sides should promote stronger trade and investment activities, especially in the field strengths of the two sides such as science and technology, education and training. Ministry of Industry and Trade of Vietnam is ready to support and create favourable conditions for foreign investors, especially Hungarian investors in Vietnam to invest and cooperate in the fields of trade and industry, on the principle of mutual benefit.

 

According to Pham Thi Thu Hang, VCCI General Secretary, Hungary is a country with a strategic location in Central Europe, stable political environment, developed telecommunications infrastructure, convenient transportation, skilled workforce and advanced education system.

 

With the competitive mechanism of tax and investment, Hungary is an attractive destination for investors and businesses to cooperate in its strong areas such as the automotive industry, electronics, medical, pharmaceutical, industrial processing, environmental protection, clean water, research and development, ICT, transport, etc.

Hungary attaches special importance to the development of trade and economic relations with traditional friendly countries including Vietnam, the developing country having an important role in ASEAN. The Hungarian enterprises are interested in Vietnamese market and there are many big Hungarian enterprises present in Vietnam such as Gedeon Richter, EGIS and Thesys Group, etc.

 

Ms Hang said that Vietnam and Hungary besides traditional relations of friendship also have many close similarities in economic development. Both countries are the gateway to the dynamic economic regions. In addition, a number of Vietnamese experts who had been studying and training in Hungary currently hold key positions in state agencies and enterprises. So economic cooperation is an important driving force to strengthen ties and cooperation between the two countries, and the two sides will now be a major force to turn that potential into reality.

 

“VCCI and Hungarian partners will strengthen trade promotion activities and significant investment like this event. Through these activities, I believe that the relationship between the business communities of the two countries will continue to develop and expand the projects and programs between partners of the two sides," said Ms Hang.

 

Hungarian Ambassador to Vietnam, Ms Eszter Torda also said that, along with the meeting of the Joint Committee, the matters discussed at the forum would contribute to the legal framework for the development and expansion of economic cooperation between the two countries.

 

According to Farago Pete from the Department of Investment and Development of Hungary, Hungary has a stable political environment, convenient transportation, attractive tax and investment mechanisms, etc. Although Hungary has only about 10 million people, there are 1.6 million businesses, mostly small and medium enterprises. So, the Hungarian government focused on strengthening and improving the enterprise positions for the development and exports. The Hungarian enterprises are interested in Vietnam market and willing to cooperate with Vietnam businesses for mutual benefit.