Czech Enterprises Appreciate Vietnam Market

 

Mr Vo Tan Thanh, Vice President of VCCI and Director of VCCI – HCM, said 2015 was a special year marking many significant events in bilateral relations between Vietnam and the Czech Republic, notably the 65th anniversary of establishing diplomatic relations between the two countries and Vietnam Cultural Year in the Czech Republic. These activities have contributed to further tightening the relationship between the two countries, especially in the context of Vietnam and the European Union having just finished the basic process of negotiating a free trade agreement. On the basis of traditional friendly relations, Vietnam and the Czech Republic are to strengthen cooperation in all fields, particularly economic relations, trade and investment.

 

Currently, the Czech Republic is on the list of strategic export markets of Vietnam in the 2010-2020 period; Vietnam is also seen as one of the 12 leading potential markets of the Czech Republic, and the gateway to the ASEAN market in the context of the upcoming establishment of the ASEAN Economic Community. However, "the bottom line" is now the bilateral trade turnover between Vietnam and the Czech Republic, which is still modest and not commensurate with the actual potential. Therefore, the two countries will strive to push bilateral trade volume to US$1 billion in the near future.

 

In the field of investment, Czech enterprises have 48 investment projects in Vietnam with total registered capital of over US$100 million, focusing on the areas in which the Czech Republic has advantages such as energy, transport, mechanics and machinery. Vietnam has four investment projects in the Czech Republic with a total registered capital of US$5 million, focusing on the real estate sector and construction materials. Mr Thanh stressed: "These modest figures suggest that potential investment cooperation between Vietnam - Czech Republic has yet to be exploited effectively."

 

Agreeing with Mr Thanh, Mr Lubomir Zaoralek, Minister of Foreign Affairs of the Czech Republic, identified that regarding the investment in Vietnam, the Czech Republic stood at 44th among 105 countries and territories investing in the Southeast Asia nation. This is a relatively modest figure, shy of the potential for broad cooperation and investment between the two countries. Mr Lubomir Zaoralek said: "Czech Republic has booming industries based on the export of industrial products to other strict markets in the world; therefore we are fit to become a strategic partner of Vietnam, especially in the context that Vietnam is striving to become an industrialised country by 2020. Meanwhile, with a population of over 90 million, stable consumption, large-scale economies, and abundant natural resources, Vietnam's market has always been appreciated by the Czech business community and will be a fertile ground for Czech companies to invest in. We hope the Government of Vietnam will pay more attention to creating a favourable investment environment for Czech Republic investors to assure business activities."

 

Vice President of the Federation of Industry & Transport of the Czech Republic, Mr Stanislav Kazecky, added that the Czech enterprises investing into Vietnam have received the patronage of the State Bank and insurance agencies of the Czech Republic. Mr Stanislav Kazecky asserted: "Czech enterprises are very dynamic, creative, and have sufficient capacity to perceive subtle differences in culture between Vietnam and the Czech Republic from which they will issue appropriate adaptive methods, forming a harmonious and friendly development environment for the Vietnamese business community."