Expanding Cooperation with Austrian Businesses

Speaking at the meeting, Dr Khuong said Vietnam - Austria trade relations were set up the 1970s. The two-way trade developed in recent years but remained modest in relation to the potential of both nations.

 

He added that the Agreement on Double Taxation Avoidance, effective January 1, 2010, provided a solid legal framework for both nations to expand cooperation. The most important cooperation mechanism between the two countries is now Vietnam - Austria Joint Commission on Economy and Trade, upgraded from the Intergovernmental Task Force in December 2010. VCCI also signed a cooperation agreement with the Austrian Economic Chamber (WKO) in May 2012. In the coming time, the two sides must provide more information on economy, law and other aspects for businesses of the two countries to increase opportunities of cooperation and investment.

 

He added that, to unlock bilateral cooperation potential, the two sides need to focus on fields of high interest and demand such as telephones, electronics, footwear, wood products, textiles, apparels, equipment, machines, pharmaceuticals, steel, paper, animal feeds and raw materials. Dr Khuong hoped that Austrian businesses will increase investment in Vietnam, particularly in the areas that Austria has advantages like infrastructure, industry, energy and healthcare.

 

According to VCCI, Austria had 21 valid projects with a total investment capital of US$94.17 million in Vietnam as of March 2015, ranking the 41st out of 101 countries and territories with investment in the Southeast Asian nation. Austrian projects usually have a small scale and engage in processing, manufacturing, accommodation, catering, arts and entertainment fields.

 

Dr Khuong noted that cooperation with Vietnamese companies will provide Austrian firms with a passport into bigger markets thanks to Vietnam’s memberships to big free trade areas such as ASEAN - China, ASEAN - Japan, ASEAN - South Korea. With a series of free trade agreements it signed, Vietnam will be an attractive destination for freeing investors, including Austrians.

 

As a representative agency for the Vietnamese business community, VCCI is committed to creating every condition for Austrian businesses to invest and expand business cooperation in Vietnam. VCCI has also collaborated with the Austrian Embassy in Vietnam to organise meetings and forums for various businesses from both countries, including Vietnam - Austria Business Meeting on March 13, 2013; Vietnam - Austria Business Meeting in Hanoi on September 29, and in Ho Chi Minh City on October 1, 2014.

 

Dr Christoph Matznetter said that the lack of preference policies was behind the current disappointing result, partly due to the insufficient understanding of each other’s potential and strengths. He explained that Austria's economy depends heavily on demands from major trading partners in Europe, such as Germany, Italy and Switzerland, but it has not invested much in Asia. He hoped that the two countries will make long strides in bilateral cooperation development after free trade agreements take effect.

 

He affirmed that Austrian businesses are strong in manufacturing, energy, railway, seaport, waste treatment and food processing technology, suggesting that these are favourable conditions for both nations to find new ways to develop bilateral relations in economy, trade and investment. Austria will also be the gateway for Vietnamese firms to penetrate further into the European market. He expressed his belief that business ties between the two nations will be further promoted to attract new projects and expand partnerships.

 

To enhance the two-way economic cooperation, Dr Christoph Matznetter suggested that Vietnam and Austria provide favourable conditions for enterprises to seek cooperation and investment opportunities through trade and investment promotion, trade fairs, exhibitions and research exchanges, especially thematic exhibitions and fairs.