Promoting investment and trade between Vietnam and Chile

Deputy Minister Vuong Dinh Hue speaking at the forum

The Vietnam-Chile Investment and Trade Forum took place on July 5 in Santiago, Chile with the participation of over 100 representatives of the Vietnamese and Chilean business communities. The forum was expected to open a brighter future for bilateral co-operation.

In order to strengthen bilateral relations on economics, trade, and investment, along with the opportunities and challenges of Industry 4.0, Deputy Prime Minister Vuong Dinh Hue proposed the two countries to further strengthen discussion and communication on investment policies, priority sectors for co-operation, as well as carry out co-operation programmes so that the businesses of the two countries can familiarise themselves with the investment climate and opportunities at each side.

The two countries’ government should strengthen linkages between their businesses and the global market by building value chains, especially in the fields that the two countries could complement each other.

Despite the big distance between Vietnam and Chile, the two countries’ traditional relations are very good. Chile is the first South American country to establish diplomatic relations with Vietnam (1971), which has been upgraded to a comprehensive partnership in 2007.

Over the past years, two-way trade turnover has increasingly raised to $1.28 billion in 2017, a nine-fold increase against the $170 million of 2005. “Chile could become a bridge connecting Vietnam and South American markets, and Vietnam could help Chile reach out to the ASEAN, which has a total population of 650 million,” the DPM stated.

With its available advantages and conducive economic policies, Vietnam is an attractive investment destination, as shown by the $326 billion of FDI capital pledged by 128 countries. Leading transnational corporations (TNCs) on the Global Fortune Top 500 have set foot in Vietnam and incorporated the country into their global supply chains, especially in the fields of electronics, garment, motorbikes, and agriculture and fishery.

Promote investment and trade between Vietnam and Chile

The deputy prime minister said that Vietnam's equitisation of state-owned enterprises (SOEs) has been deployed effectively, including numerous large-scale groups and corporations in the fields of finance-banking, energy, and food and beverage. Foreign businesses could absolutely become strategic investors of these equitised SOEs.

According to a survey of AmCham, EuroCham, JETRO, and KoCham, nearly 90 per cent of the US’ firms doing business in Vietnam expected a rise in profit this year. Over 70 per cent of US’ firms, 90 per cent of European firms, and 70 per cent of Japanese companies plan to expand investment or operations in Vietnam.

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.

This forum is a good chance for the business community of the two countries to discuss investment opportunities, business connectivity, as well as give out solutions to promote and raise the level of Vietnamese-Chilean economic co-operation in the coming time.