The Vietnam-Brazil Investment and Trade Forum took place on July 3 in
Sao Paulo, Brazil, the largest finance-economy centre in the South
Americas. With the participation of over 200 representatives, this was
the biggest economic event between the two countries in Brazil during
the official visit of Deputy Prime Minister Vuong Dinh Hue to Brazil.
In order to strengthen relations on economics, trade, and investment
between the two countries, Deputy Prime Minister Vuong Dinh Hue proposed
the two sides to strengthen communication on investment policies,
priority sectors for co-operation (especially agriculture), as well as
carry out co-operation programmes for businesses of the two countries to
familiarise themselves with the investment climate and opportunities at
each side.
Two countries’ governments should encourage and promote investment
and trade flows based on benefits to both sides, as well as strengthen
exchanges of business delegations to find investment opportunities.
The DPM encouraged Brazilian businesses to invest in the fields of
manufacturing, high-technology, infrastructure development,
agriculture-forestry-fishery, renewable energy, information technology,
pharmaceuticals, biology, construction, and services, as well as become
strategic partners in Vietnamese state-owned enterprises which are in
the process of equitisation.
After nearly 30 years of establishing diplomatic relations
(1989-2019), and especially the comprehensive partnership formed in
2007, the relationship between Vietnam and Brazil has been developing in
various fields.
Brazil is the largest and most important market of Vietnam in the
South Americas. In 2017, two-way trade turnover hit $3.87 billion, a
twelve-fold increase over the decade. However, investment co-operation
between the two countries is very modest, posting only three projects
with the total investment of $2.8 million.
With available advantages and conducive economic policies, Vietnam is
an attractive investment destination, with $326 billion of FDI capital
from 128 countries. Numerous leading transnational corporations (TNCs)
in the Global Fortune Top 500 have set foot in Vietnam and developed the
country into part of their global supply chains, especially in the
fields of electronics, garment, motorbikes, and agriculture and fishery
DPM
Hue said that there are many fields where the two countries could
complement each other, such as energy, aviation, agriculture,
infrastructure, health.
“Brazil could become a bridge connecting Vietnam and South Americas
markets, and Vietnam could help Brazil to reach out to the ASEAN market
with the total population of 650 million, and the 800 million people of
the Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP),” the DPM stated.
The Vietnamese government commits to maintain socio-political
stability, create the most favourable business climate to fall in line
with OECD standards, as well as reduce transaction costs, especially the
cost of logistics and administrative procedures.
There are around 330 industrial parks in Vietnam, 16 coastal economic
zones, and three Special Administrative-Economic Zones being formed
with outstanding incentive policies. These will enable Vietnam to remain
the most attractive destination for foreign investors.
Themes discussed at the forum were very practical, showing the
co-operation potential of the two countries’ businesses. They also
raised numerous solutions to promote relationship on bilateral economic
ties, investment, and trade more effectively in the time to come.
“On this occasion, we suggest Brazilian enterprises to pay attention
to investment and trade with Vietnam, given the mutual benefits and
advantages on the table. The Vietnamese government vows to develop a
transparent, friendly, and open investment climate, as well as create
the most favourable conditions for all economic sectors, including
Brazilian businesses, to seize potential opportunities and improve their
performance in Vietnam,” Deputy Minister of Planning and Investment Vu
Dai Thang said at the forum’s conclusion.
By Nguyen Huong, www.vir.com.vn