“UK businesses regard Vietnam as a priority market for trade and investment, while Vietnamese businesses pay less attention to this market. With advantages in industry, agriculture, education and tourism, Vietnamese still failed to focus on UK market.”
Such is the remark of Mr Nguyen Van Thao, Vietnamese Ambassador to the UK at the dialogue “Vietnam- United Kingdom potential opportunities for cooperation” sponsored in Hanoi recently by the Vietnam Chamber of Commerce and Industry (VCCI) and British Embassy on the occasion of the visit of the Duke of York – Prince Andrew.
Great potential
According to VCCI President Vu Tien Loc, since the establishment of diplomatic relations with the UK on September 11, 1973, Vietnam-UK relations have recorded remarkable developments.
Vietnamese export to UK has increased on average of 20 percent a year with a constant trade surplus for Vietnam. Presently, the UK has some hundred trade representative offices and business branches in Vietnam. British Business Group in Vietnam (BBGV) was one of the first trade promotion organisations in Vietnam and has efficiently promoted bilateral economic cooperation.
Regarding investment, the UK has expanded to various areas such as banking, financing, manufacturing, service and garments. Big British companies are doing business in Vietnam such as BP, BHP, Billiton, Rolls-Royce, Vodafone, P&O and GlaxoSmithKline, with Prudential and HSBC and Standard Chartered being the first banks with 100 percent foreign capital established in Vietnam.
Most British investment projects are of small and medium sizes, focusing on mining, processing, manufacturing with 55 projects, real estate, banking financing and insurance.
Though the UK is not among the Top Ten in investment (ranking 16th with total investment of US$3,195 million), it is the most successful investor in Vietnam, taking the lead with BP in oil and gas, Prudential in insurance and HSBC in banking.
Sufficient information needed
According to Dr Loc, Vietnam-UK cooperation remains small in size compared to existing potentials and mutual needs. Therefore, the two countries should enhance their cooperation. The government should provide more information to help British businesses better understand Vietnam and the Vietnamese market, establishing information channels to solve problems confronting British investors and vice versa.
Regarding legal and administrative formalities, there must be comprehensive reform to save time for businesses, creating transparent business environment to attract potential investors.
For their part, businesses must be more proactive and creative to make use of the forthcoming developments as a series of trade agreements and new cooperation regimes come into force. Vietnamese businesseswill have more opportunities as well as challenges due to increased competition and pressure on manpower and production cost.
For Vietnamese businesses to increase export and cooperation with British market, Mr Nguyen Van Thao believed that businesses in each sector should join together, especially linkage of businesses sharing interests in the British market, to ensure a more accountable and effective cooperation.
Duke of York, Prince Andrew said that many countries in the world have eco-system suitable for business startup. However, eco-system differs from country to country, depending on particular conditions of each country. Vietnam should have its own eco-system to develop businesses, creating culture of businesses and entrepreneurs, guiding children of business thinking from young age.
Prince Andrew said that Vietnamese businesses lack a stable business planning as well as supply channel to markets. They focus on investments, investing or seeking investment at home and abroad without caring how to make the best use of investments.
He also said that in UK, the government focuses on real estate: “We allocate certain zones and buildings for business offices. While in Vietnam, it is still very limited”. Therefore, the authorities should assist on work space with reasonable expenses connecting business start-ups and existing businesses with investors and partners from other markets.
The Prince reaffirmed that British businesses will not only bring high technology to Vietnam, but also increase assistance to business start-ups, small and medium sized enterprises, knowledge, experience as well as education, environment, science and technology for sustainable development.
Quynh Anh
Vietnamese
