This is what Mr. Do Thang Hai, Deputy Minister of Industry and Trade, hopes for at the “Vietnam – Czech Business Forum” organized by the Vietnam Federation of Commerce and Industry (VCCI) on February 21 on the occasion of the official visit to the Czech Republic by Mr. Jozef Sikela, Minister of Industry and Trade of the Czech Republic.

THE NUMBER OF COLLABORATION SHOULD BE MODEST

Speaking to the Czech business community, VCCI Chairman Pham Tan Cong said that economic and trade relations between Vietnam and the EU in general and the Czech Republic in particular have developed very positively in recent years.

Despite the strong impact of Covid-19, import and export turnover between Vietnam and the Czech Republic has still grown strongly over the past two years.

In 2022, the total trade turnover between Vietnam and the Czech Republic reached more than USD 828 million, increasing 12.65% from the same period in 2021. During this period, exports from Vietnam to the Czech Republic reached more than USD 668 million, up 14.58%; Imports from the Czech Republic to Vietnam reached $160 million, up 5.2% from the same period in 2021.

In the two years of implementation of the Vietnam-EU Free Trade Agreement (EVFTA), many Vietnamese export products have seen impressive growth in the EU market, including: iron and steel increased by 739%; Cameras, camcorders and components up 260%; Machinery and equipment increased by 82.3%.

Especially in 2023, there are many opportunities for Vietnamese exports to the EU to enjoy 0% tax. “This will surely create a strong boost for exports, especially for key groups of Vietnamese commodities that have competitive advantages, such as agriculture, textiles, leather and shoes, agricultural and aquatic products and furniture,” the leader said, VCCI pointed out.

In terms of investment, as of the end of May 2022, the Czech Republic has 41 valid direct investment projects in Vietnam with a total registered investment capital of 92.39 million USD, ranking 49th out of 139 countries and territories with direct investment in Vietnam.

Czech projects in Vietnam focus on the following areas: mining, lodging and catering, manufacturing and processing, wholesale and retail, small and medium-scale real estate business.

The VCCI President highly appreciated the fact that the Czech Republic included Vietnam – the only country in Southeast Asia – in the list of 12 key market countries and prioritized foreign trade as announced in the VCCI Czech Republic’s export strategy over the years.

Agreeing, but Deputy Industry and Trade Minister Do Thang Hai said frankly that trade between the two countries is still very modest, and both sides need to make more efforts in the coming period to keep up the tradition of friendly relations for more than 70 years years to connect.

USE THE POTENTIAL OF BOTH PARTIES

According to Vice Minister Do Thang Hai, Vietnam still has a lot of potential that Czech companies can exploit. As Vietnam is a member state of ASEAN Economic Community (AIC) with over 600 million people in an area estimated and forecast as dynamic, it has the fastest economic growth in the world, the size of GDP is USD 2.8 trillion.

Vietnam is becoming increasingly deeply integrated into the global economy. Besides expanding diplomatic, political, economic, trade, investment, tourism, education and training ties with more than 200 countries and territories around the world, Vietnam has so far signed 15 New Generation Free Trade Agreements (FTA) with 55 countries and Territories, negotiation of 2 further free trade agreements.

In addition, Vietnam joins FTAs ​​and signs FTAs ​​with 17/20 partners in G20, 7/7 partners in G7. In the process of deep integration of Vietnam’s economy with 55 economies, there will be a roadmap for more than 90% of tariff lines to drop to 0%. This is considered a great advantage for investors when doing business in Vietnam.

Many of the world’s leading companies have set up important production sites in Vietnam and have since organized the supply of the region and the world with competitive products and services. The presence of many transnational corporations and thousands of other FDI companies is a testament to the quality of Vietnam’s investment environment and growth prospects.

“I urge Czech companies to pay more attention to the Vietnamese market. The Ministry of Industry and Trade and the Vietnamese ministries and branches undertake to support and create conditions for the business, trade and investment relations of Czech companies in accordance with the law and the policy of openness and proactive integration of the international economy of the Government of Vietnam to promote these,” confirmed Mr. Hai.

Mr. Pham Tan Cong also respectfully pointed out that Czech companies are interested in a leading dynamic economic development region of Vietnam, which includes 4 northern provinces of Vietnam: Hung Yen, Quang Ninh, Hai Phong and Hai Duong, connected to Vietnam’s eastern highway Die Capital Hanoi to the border gate to China, almost 300 km long.

These are 4 places with dynamic governments, a very ideal investment environment with the best highway system today, 3 international airports, a deep sea port system, industrial parks and human resources, abundant resources with a population of nearly 7 million people.

Mr. Jozef Sikela, Minister of Industry and Trade of the Czech Republic, rated Vietnam as one of the most developed markets in Southeast Asia, where great investment opportunities are everywhere. Companies from both countries must work together to find ways to further strengthen economic cooperation and network with one another.

The President of the Confederation of Czech Industries, Mr. Jaroslav Hanak, added that the Czech Republic would like to better exploit Vietnam’s potential. The Czech Republic considers Vietnam not only as an export market, but also as a partner with whom the Czech Republic wishes to further promote close cooperation.

“The advantage of Czech entrepreneurs is that they can easily adapt to the culture and history of each country. They rely on government finance, banking and insurance as their strength. Airlines, services and public sector companies that are very dear to the Czech creative economy are collaborating with Vietnamese companies,” said Mr. Jaroslav Hanak.