(MPI) - Within the framework of the official visit to Brazil, on July 3rd, 2018 (on local time), Deputy Prime Minister Vuong Dinh Hue and a high - level delegation of Vietnam attended the Vietnam - Brazil Trade and Investment Forum.
Deputy Prime Minister Vuong Dinh Hue speaking at the Forum: MPI
Brazil is the biggest economy and the most important partner of Vietnam in South America. In 2017, bilateral trade reached 3.87 billion USD, up nearly 12 times in the last decade. However, investment cooperation between the two countries is still modest.
Vietnam is considered an attractive investment destination in the region, attracting about 320 billion USD of FDI capital from 127 economies, the trade scale in 2017 reached 425 billion USD. Vietnam is gradually becoming an important link in the global value chain, especially in the fields of electronics, garment, motor vehicles, agriculture, and seafood, etc.
Vietnam and Brazil have a wide range of highly complementary fields and products such as energy, aviation, agriculture, infrastructure, health, biology, mining, etc. Brazil can become a bridge helping Vietnam to connect with the South American region’s market and Vietnam will also serve as a bridge for Brazil to approach Southeast Asia’s market, and to a larger market when the CPTPP take effective.
Deputy Prime Minister Vuong Dinh Hue affirmed that Vietnam commits to maintaining the stability of social politics, macroeconomy, creating the best business environment towards OECD standards, reducing transaction costs, especially in logistics costs, opportunity costs and administration costs, building a stable macroeconomic policy environment with high predictability, transparency and accountability to the business community.
In 2017, the World Bank ranked Vietnam's business environment at 68th among 190 countries, up 30 places as compared to 2012; World Economic Forum ranked Vietnam’s competitiveness at 55th among 137 countries. According to Eurocham’s report on March 2nd, 2018, 62.3% of businesses having investment and business in Vietnam achieved good and excellent results; 85.4% of businesses will maintain and expand their investments. According to a survey conducted by the Japan External Trade Organization, announced on February 6th, 2018, there are 61.5% of businesses having profit and nearly 70% of businesses intending to expand their business.
With the aim to soon make Vietnam an industrialized country with modernity and sustainable, covering development, Vietnam will strive to maintain an average GDP growth of 6.5-7% per year until 2020 and achieve GDP scale of 350 billion USD, trade turnover of about 600 billion USD by 2020. To achieve its development goals, Vietnam determines to build a government of action, integrity, creativity, serving people and enterprises; continue the reformation of institutions, infrastructure, and human resources, etc.; arouse all potentials, harmoniously coordinate the dynamism of the domestic private sector with the potential of the FDI sector to enhance the efficiency, competitiveness of Vietnam in the global value chain.
Viet Nam has a strategic geographical location with global connectivity, an asymptotic population of 100 million by 2020, a golden population structure with 60% of population in working age, a constantly improving investment environment, competitive input costs, strongly upgrading transportation infrastructure with favorable international connectivity, attractive development policies and investment incentives which are being formulated, etc. Vietnam has 325 industrial zones, 17 coastal economic zones. All these advantages and efforts will help Vietnam maintain its position as an attractive strategic investment destination for foreign investors.
Vietnam has signed 12 Free Trade Agreements (FTAs), including new generation FTAs such as the CPTPP Agreement, the Vietnam-EU Free Trade Agreement (EVFTA), Vietnam hopes to have free trade relations with 55 countries, including 15 countries in G20 by 2020.
To further strengthen economic, trade and investment relations between Vietnam and Brazil in the coming time, Deputy Prime Minister Vuong Dinh Hue said that the two sides need to promote deep and wide information exchange on policies related to the investment of each country, the priority areas for cooperation; coordinate to deploy the cooperation programs in investment and trade promotion in various forms to create conditions for enterprises of both sides to better understand the investment environment and investment opportunities of each country. Governments of the two countries need to encourage and promote the two-way flows of investment and trade, on the basis of mutual benefit; increase the exchange of business delegations to explore and get to know the market, opportunities and business connections to enhance the trade and investment relations, commensurate with the potential and advantages of the two countries.
Deputy Prime Minister Vuong Dinh Hue wished the Brazilian enterprises to invest in the industrial fields of manufacturing, high technology, infrastructure development, agriculture - forestry - fisheries, renewable energy, information technology, pharmaceuticals, biology, construction, services, etc., as well as participate in strategic partnerships with state-owned enterprises in Vietnam which have been being and will be equitized and divested.
With representatives from more than 40 top Vietnamese enterprises in the fields that the two sides have potential cooperation in, Deputy Prime Minister Vuong Dinh Hue also expected Vietnamese and Brazilian enterprises to connect, cooperate in building and establishing value chains, connecting between the two countries and with the global market. He affirmed that Vietnam is willing to openly discuss issues that Brazilian enterprises take interest in and the Government of Vietnam commits to facilitating all favorable conditions for Brazilian investors to invest successfully, sustainably in a long-term in Vietnam.
The forum is the largest economic event that has ever been held between the two countries in Brazil, with the participation of more than 100 enterprises, expressing sincere concern and expectations of the business community of the two countries on the economic cooperation relationship with plenty of room to further expand and develop between Vietnam and Brazil in the coming time.
At the forum, delegates openly shared comments and proposed ideas to help the two countries' authorities to set views, orientations on solutions for further promoting the economic cooperation relationship between Vietnam and Brazil.
Speaking at the closing of the Forum, Deputy Minister of Planning and Investment of Vietnam Vu Dai Thang highly appreciated the contents exchanged and discussed at the Forum on the fields of practical significance, showing the great potential for cooperation between the business communities of two sides in the overall picture of economic cooperation between the two countries; thereby contributing to shaping solutions to promote relations of economic, investment and bilateral trade cooperation in a more effective, practical way in the future.
Deputy Minister Vu Dai Thang wished the Brazilian enterprises to continue paying their intention to increase the investment and trade with Vietnam based on their advantages and strengths, on the basis of equality and mutual benefit. He affirmed to continue building a transparent, business-friendly, open-minded investment environment and committed to facilitating all favorable conditionals for all economic sectors, including Brazilian businesses to access potential opportunities, effective business operation in Vietnam./.
Ministry of Planning and Investment