To support the Vietnamese business community to diversify markets and actively seek investment and business opportunities in the context of more free trade agreements (FTAs) in force, including the Vietnam-EU FTA which is in the final round of negotiations, the Vietnam Chamber of Commerce and Industry (VCCI) coordinated with the Embassy of Finland in Vietnam and the Finnpartnership Programme under the Finnish Ministry of Foreign Affairs to organise a seminar on "Business opportunities with Finnish businesses” in Hanoi.
At the conference, a representative from the Embassy of Finland presented potential cooperation opportunities for Vietnamese and Finnish businesses in some fields, including education and information technology, which Finland is highly appreciated for competence and knowledge. Particularly, an official from the Finnpartnership Programme and Innovation Partnership Programme (IPP), which will support Vietnamese businesses to connect with Finnish partners and seek financial sources from IPP, also introduced Finnish education and information technology business delegations which will visit Vietnam in May to seek business cooperation opportunities.
Finland is an industrialised country with a developed market economy and income per capita among the highest in Europe, standing on par with Austria, Belgium, the Netherlands and Sweden. Trade contributes some 40 percent to its GDP. Three key export sectors of Finland are steel, machinery and transport equipment (31.1 percent of exports); optical equipment and electronics (up 28 percent); and paper and wood products (20.3 percent).
According to statistics, Vietnam - Finland trade relations are on the rise. The two-way trade turnover climbed US$99.7 million in 2005 to US$239.5 million in 2008. The value slumped to US$190.6 million in 2010 due to global economic slowdown before reviving to US$228.7 million in 2013 and US$262.8 million in 2014.
Given that the trade value is well below the potential, the two sides expect to see the value to climb to US$1 billion in some years to come.
Vietnam mainly exports coffee, rubber, footwear, apparels, handicrafts, wood products, bicycles and spare parts to Finland while it imports machinery, equipment, information and communication devices (accounting from 80-85 percent of turnover), hides, apparel materials, plastic materials, electrical equipment and steel from the European nation.
Popular Finnish products in Vietnam include Nokia phones, Vertu phones, Wilson tennis rackets, Sapa salmon, Xyliton candies, Linux software, and KEMPPI welding machines.
Finland invested over US$325 million in 10 projects in Vietnam as of March 2015, ranking 29th out of 101 countries and territories with direct investment into Vietnam. Most projects are classified small and medium-scaled, primarily engaged in industrial glue, garment, wood production and seafood processing. The Embassy of Finland in Hanoi has administered a local fund with EUR500,000 a year since 2003. The fund, decided by the Ambassador, finances EUR30,000 - 50,000 for a project.
Economic, commercial and investment cooperation is Finland’s top priority in relations with Vietnam. On the Vietnam visit by Finnish President in February 2008, the two sides signed the Agreement on Investment Promotion and Protection - an important legal basis for the two sides to strengthen bilateral trade and investment relations in the coming time. Finland established thee Consulate General in Ho Chi Minh City in May 2008, opened the Office of Finpro Trade Promotion Agency in the city in 2009, and set up an Honorary Consulate in Danang City in February 2010 to meet growing interests of Finnish companies in the Vietnam market. According to a recent survey by the Finnish Business Association, Vietnam is the second most-desired Asian market (after China and before India) by Finnish businesses.
Thus far, Vietnam does not have any company with investment in Finland.
Anh Mai
Vietnamese
