Expressions of trust in Vietnam’s business environment

Despite the COVID-19 pandemic, Vietnam remains an attractive investment destination thanks to its strategic geographic location and appropriate economic development policies. Vietnam is improving its connectivity to global supply chains through participation in various free trade agreements (FTAs) including the Regional Comprehensive Economic Partnership (RCEP) Agreement that involves Indonesia. This is an important factor connecting the two countries to the global market.

Vietnam and Indonesia see good prospects for bilateral trade growth in 2023 and ensuing years. The two countries set a target of US$15 billion for 2028.

Matsumoto Nobuyuki, Chief Representative of the Japan External Trade Organization (JETRO) in Ho Chi Minh City: Many Japanese companies want to increase Vietnam investment

Japanese companies want to invest in labor-intensive industries and are interested in fields with high added value, such as automobile and electrical equipment.

The Japanese Ministry of Economy, Trade and Industry is encouraging Japanese companies to diversify global supply chains and is willing to support these efforts. So far, many companies have registered to participate in the program. Some 103 projects have been implemented, 41 of which are related to Vietnam and cover three sectors: metal processing, health services, and electrical equipment. Vietnam can attract more Japanese investment in these sectors.

Alex Tatsis, Economic Section Chief at the US Consulate General in Ho Chi Minh City: Enhancing supply chain adaptability

Vietnam is the 10th largest trading partner of the United States. Supply chains are the focus of the Indo-Pacific Economic Framework for Prosperity (IPEF). Within the IPEF, the US will coordinate with partners like Vietnam to identify fields and products that are important to national security, the recovery ability of the economy, as well as people’s health and safety, taking joint action to enhance the recovery ability in these fields, generate jobs and create economic opportunities for major industries.

The US supply chain linkages with Vietnam will help it promote exports to other markets all over the world more strongly in 2023 and ensuing years. This is why the US is helping Vietnam enhance its role in global supply chains in the long term. Specifically, the US is intensifying trade facilitation and helping enhance the private sector’s competitiveness, especially for small and medium enterprises. The Linkages for Small and Medium Enterprises (LinkSME) Project funded by the US Agency for International Development (USAID) helps Vietnamese SMEs improve manufacturing capacity, access financial resources and promote digital transformation, enabling their participation in global supply chains for the mutual interests of the two countries.

Alexander Nowakowski, Third Secretary of Economic Affairs, Polish Embassy in Vietnam: Trade is a top priority

The Polish business community is boosting trade promotion and investment cooperation with Vietnamese companies in the fields of farm produce and food processing to take advantage of the EU-Vietnam Free Trade Agreement (EVFTA) and other FTAs.

The EVFTA has removed 71 percent of tariffs for Vietnamese exports as soon as it took effect. The remainder will be eliminated within seven years, creating favorable conditions for Vietnamese goods to enter the Polish market in particular, and the EU market in general.

A small country in Middle Europe, Poland is said to have successfully developed a market-driven economy, while maintaining socioeconomic stability. It is one of the fastest-growing economies in the EU. Trade with Poland will facilitate Vietnamese goods’ access to the EU market with 500 million consumers.

Jean Jacques Bouflet, Vice Chair of the European Chamber of Commerce (Eurocham) in Vietnam: Looking towards green exports

The Vietnamese economy is recovering strongly after the pandemic, creating an impetus for 2023 growth. Domestic companies have taken advantage of FTAs to boost exports. However, to compete in the EU market, Vietnamese businesses should abide by strict environmental regulations to meet the demand for green, sustainable goods.

The EU has committed to open, sustainable trade, coping with global challenges based on principles while maintaining competitiveness. The EVFTA with a Chapter on Trade and Sustainable Development will help increase Vietnam’s exports to the EU. However, to make the most of the trade deal, Vietnamese companies should look towards green, sustainable growth.

Green exports, i.e., export of low-carbon, environmentally friendly products, is a promising way for nations wishing to separate economic growth from environmental degradation.