Vietnam-Hungary Business Forum Seeks to Grow Trade, Economic Cooperation - Vietnam Briefing News
On March 12, 2015, the Vietnam-Hungary Business Forum met to explore business and investment opportunities between the two countries as well as strategies to strengthen bilateral relations. The Forum, which took place in Hanoi, was organized by Vietnam’s Ministry of Industry and Trade (MoIT) in partnership with Hungary’s Ministry of Foreign Affairs and Trade. Over 150 Vietnamese enterprises and 17 Hungarian enterprises participated in the meetings.
In recent years, economic relations between Vietnam and Hungary have been significantly strengthened. Vietnam is eager to benefit from Hungary’s developed industry, particularly with regard to technology and equipment renovation, which Vietnam hopes will help grow its production and export capabilities. Additionally, Hungarian firms that are engaged in service sectors, such as logistics, delivery, and healthcare, are especially attracted to Vietnam.
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According to the MoIT, in 2014, total trade turnover between Vietnam and Hungary reached US$175 million, in which Vietnam exported US$55 million and imported US$120 million from Hungary. Vietnam’s main export areas to Hungary are food and telecommunications equipment. Total import/export turnover between the two countries has seen an average growth rate of 10 percent per year; this rate is expected to increase in the future.
Currently, Hungary has 13 foreign direct investment (FDI) projects in Vietnam, with a total registered capital of US$47.5 million. Investments from Hungary typically focus on the areas of agriculture, food production, pharmaceuticals, and medical equipment. The largest such project, located in Binh Duong province, is a leather manufacturing facility owned by Crest Asia Vietnam Co., Ltd, which began operations in 2008 with an investment capital of US$40 million.
The two countries are eager to continue the growth in their total trade turnover. Hungary has committed to a number of trade promotion activities that will focus on economic cooperation and technology transfers. Additional investment opportunities will be explored in areas such as:
- Information technology
- Medical equipment
- Food and drinks
- Environment and water treatment
Hungary is also hopeful that it will be able to export a range of products to Vietnam in the future, these include:
- Manufacturing equipment
- Measuring equipment
- Pharmaceuticals and medical equipment
- Agricultural products such as wheat, corn, sunflower seeds, or dairy products
Finally, Vietnamese and Hungarian enterprises will also cooperate in the areas of education, science, and technology.
With its stable economy and 1.6 million local businesses, as well as its close location to key European economies, Hungary could be an important stepping stone for Vietnam to further penetrate the European market.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email [email protected] or visit www.dezshira.com.
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