Vietnam, Luxembourg boost trade, investment cooperation

Vietnam and Luxembourg will strengthen cooperation in finance, logistics and sustainable development to help address climate change via a series of Memoranda of Understanding (MoUs) signed between the two sides at the Vietnam-Luxembourg Business Forum held in Ho Chi Minh City on May 5.

A signing ceremony of the MoU between representatives of the two countries was held in Ho Chi Minh City. Photo: VNA

Speaking at the forum, Prime Minister of Luxembourg Xavier Bettel, who is on a visit to Vietnam, said that Vietnam is one of the most dynamic economies in the region and the world. Economic, trade and investment cooperation is a priority for the two countries.

He added that Luxembourg is a developed country with advantages in green services, finance, banking, and circular economy, which are of interest to Vietnam. The forum provided an opportunity for businesses of the two countries to exchange information and make new beginnings of cooperation in the coming period.

Vo Tan Thanh, Vice President of the Vietnam Confederation of Trade and Industry, said that trade and investment cooperation between the two countries had achieved impressive results in the past. However, they need to be effectively combined with solutions to remove the EU's yellow card on Vietnam for illegal, unreported and unregulated (IUU) fishing and to approve the EU-Vietnam Investment Protection Agreement (EVIPA) soon.

Thanh said the two countries would strengthen cooperation in tourism human resources training, an area where Vietnam is in high demand.

Minister of Industry and Trade Nguyen Hong Dien speaks at the event.

Minister of Industry and Trade Nguyen Hong Dien stressed that global challenges and difficulties require economies to be more open and deeply integrated. Vietnam and Luxembourg need close and more effective cooperation, especially in trade and investment, to improve the resilience of their economies.

He said strengthening bilateral economic and trade cooperation within the multilateral framework between ASEAN and the EU will benefit Vietnam and Luxembourg greatly.

Dien added that in terms of trade, the two countries have the potential for expansion because their structure of import and export goods is complementary, with Vietnam's advantages being garments, footwear, furniture, tropical agricultural products, and seafood, while Luxembourg's are chemicals, rubber, plastics, steel production, and financial services, banking and insurance from Luxembourg.

In terms of investment, the comprehensive, practical, and effective cooperation mechanisms of the EU-Vietnam Free Trade Agreement (EVFTA), EVIPA, and especially the strategic partnership on green finance recently signed by the two governments will create favorable conditions for investors in Luxembourg and the EU to expand investment projects in Vietnam, Dien said.

As of March 2023, Luxembourg ranked third out of 24 EU countries and 17th out of 139 countries and territories investing in Vietnam. The country had invested in 64 projects worth US$2.6 billion in Vietnam.