2015 marks the 65th founding anniversary of diplomatic relations between Vietnam and Slovakia. According to experts, the two sides hold tremendous potential for bilateral cooperation, because one is the gateway to the ASEAN Economic Community (AEC) market with over 600 million people and the other is the entry to the demanding European market. To shed light on the degree of interaction between the two countries, Vietnam Business Forum interviewed Deputy Construction Minister Le Quang Hung, Vice Chairman of the Vietnam - Slovakia Friendship Association. Anh Phuong reports.
Could you please introduce the potential and advantages of trade and cooperation between Vietnam and Slovakia?
The Government of Vietnam is advancing its open-door policy and flexible mechanism. Thus, Vietnam may be an important springboard for Slovakia to bring its goods to the region, especially to the AEC market with more than 600 million people. For its part, Slovakia is also an important entryway for Vietnam’s goods to make inroads into the EU, Eastern Europe and former Soviet Union countries.
Besides, as attractive, dynamic markets with similarities in economic structure and political stability, Vietnam and the Republic of Slovakia will have a lot of opportunities for deepening and broadening bilateral trade relations and cooperation ties between the two business communities.
What is the expected highlight of this investment cooperation in the coming time?
Currently, the Government of Slovakia also takes very much interest in the degree of economic cooperation between Vietnam and Slovakia, especially in energy, education and health fields. With over 40 years of nuclear power development experience, Slovakia wants to cooperate and support Vietnam to develop its energy industry.
On his recent visit to Vietnam, Slovakian Deputy Prime Minister and Foreign Minister Miroslav Lajcak said Vietnam has rich potential for developing energy industry. In addition to energy sourced from thermal power and hydropower, Vietnam is right with its energy development policy, which plans the first nuclear power plant by 2030. With the energy development plan adopted by the Government of Vietnam, the cooperation with foreign partners on investment sources and modern machinery is very important. Slovakia is ready to cooperate and support Vietnam in the development of this important energy source.
Furthermore, the Government of Slovakia has adopted an “energy security” strategy with reasonable prices for people and export orientations, aiming to become a centre of power transit in Europe. Currently, Slovakia's energy mainly comes from nuclear power plants, gas-fuelled power plants and artificial energy sources. According to Mr Miroslav Lajcak, economic development must be attached to energy saving and the bilateral trade cooperation will be based on this direction in the future.
How do you think about economic, trade and investment cooperation opportunities between Vietnam and Slovakia in the coming time?
According to the statistics, the two-way trade turnover was more than US$407 million in 2013, well below the potential of both nations. Vietnam earned US$319 million from exports to Slovakia, mainly from electronic devices, parts, footwear and apparel. As of end-2013, Slovakia had five investment projects with US$235 million in Vietnam, ranking 31st out of 101 countries and territories investing in the Southeast Asian nation. Typical projects include a hotel and office complex in Ho Chi Minh City and Lac Thinh Industrial Park in Hoa Binh province.
In the first eight months of 2014, the two-way trade turnover reached US$281 million, of which Vietnam fetched over US$262 million from selling computers, electronic products and accessories, footwear, garments and mobile phones. HCM City licensed one project worth US$100 million. Its trade value with Slovakia was more than US$85 million in the first nine months of 2014.
FPT Corporation of Vietnam acquired RWE IT Slovakia, a software company, from RWE Group to set up FPT Slovakia in June 2014. Currently, FPT Slovakia has 400 employees who were born in Slovakia and Europe. In 2015, the European market is expected to contribute 20 percent of FPT’s software export revenue and FPT Slovakia will play a very important role in this plan.
Would you talk about Vietnam’s strengths in establishing investment and trade ties with Slovakia?
At present, with over 90 million consumers, Vietnam is a big market for Slovakian businesses to conquer and a gateway for them to enter the Southeast Asian market with hundreds of millions of people.
Last but not least, Vietnam has a workforce of 50 million people at working age. The country also has very stable politics and society, sustainable economic development in 10 straight years with annual GDP growth of 5.7-8 percent. The Government of Vietnam has many foreign investment attraction policies and is approaching European businesses alongside traditional Asian partners.
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