Vietnam attracts Czech investors

Processing and manufacturing industries are among major fields of Czech investment in Vietnam

Addressing a recent Vietnam-Czech Business Forum held by the Vietnam Chamber of Commerce and Industry (VCCI), Minister Jozef Síkela said Vietnam is one of the most stable and rapidly developing markets in Asia, with a population of nearly 100 million, and a growing number of Czech companies are interested in its investment climate and opportunities.

Jaroslav Hanak, President of the Confederation of Industry of the Czech Republic, said he had been to Vietnam many times together with Czech business delegations. The Czech Republic not only wants to export goods to Vietnam, but also wishes to promote a close friendship with Vietnam, he added.

VCCI President Pham Tan Cong said Vietnam and the Czech Republic have maintained their friendship for more than 70 years with relations expanding in all fields, from politics and diplomacy to trade and investment.

In 2022, trade between the two countries exceeded US$828 million, up 12.65 percent compared with 2021. Also in 2022, 41 Czech investment projects were ongoing in Vietnam with total registered capital of US$92.39 million, concentrated in mining, accommodation and catering services, processing and manufacturing industries, wholesale and retail, and small- and medium-sized real estate business.

However, despite the Czech interest in the Vietnamese market, Deputy Minister of Industry and Trade Do Thang Hai said bilateral investment and trade remains incommensurate with their potential.

Advocating the advantages of investment in Vietnam, Hai pointed to its membership in the ASEAN Economic Community, one of the fastest growing economic regions in the world with over 600 million consumers and gross domestic product of US$2,800 billion.

Vietnam is also a member of global economic institutions, such as the World Trade Organization (WTO), Asia-Pacific Economic Cooperation forum (APEC), and Asia-Europe Meeting (ASEM), and is expanding diplomatic, political and economic relations with more than 200 countries and territories.

Vietnam has signed 15 new-generation free trade agreements (FTAs) with 55 countries and territories and is negotiating two additional FTAs. Major FTAs include the EU-Vietnam Free Trade Agreement, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Regional Comprehensive Economic Partnership.

“Vietnam is engaged in FTAs with 17 G20 members and all seven members of the G7. In the process of Vietnam’s integration with 55 economies, more than 90 percent of tariff lines will be gradually reduced to zero. This is a favorable condition for foreign investment in Vietnam,” Deputy Minister Hai said.