• Consolidating trade balance
Mr. Martin Maier
Since the second half of the 19th century, Swiss trading companies have begun their operation in Vietnam, and Swiss consulates have also been established in Hai Phong and Saigon.
Switzerland, a neutral country, hosted the Geneva conference in 1954. In 1971, Switzerland and Vietnam officially established diplomatic relations and the first Swiss Embassy in the capital city of Hanoi was put into operation at a small office in the Metropole hotel in 1973. Based on the solid development of the cooperation relationship between the two countries, Switzerland decided on setting up the Consulate General of Switzerland in Ho Chi Minh City in 2015.
The close relationship between the two countries continued thriving through regular top-level visits and meetings within the framework of international conferences. Swiss President Guy Parmelin paid a visit to Vietnam in 2019 with the role of the Minister for Economic Affairs, Education and Research.
In August 2021, Vice President cum Minister of Switzerland Foreign Affairs Ignazio Cassis visited the capital city of Hanoi on the occasion of the 50th anniversary of the establishment of diplomatic relations between the two countries.
Notably, Switzerland gave its supports to Vietnam in the fight against the Covid-19 pandemic. At the end of November 2021, Vietnamese President Nguyen Xuan Phuc along with a business delegation also visited the partner.
Up to now, the Switzerland Government spent around VND15,000 billion (US$663 million) to help Vietnam promote sustainable economic growth, aiming to improve the Vietnamese people’s lives.
Swiss State Secretariat for Economic Affairs (SECO) supported Vietnam to boost the efficiency of economic policies and institutions, create an active and competitive private sector with the capabilities of accessing to global value chains, sustainable urban development and adaptation to climate change. Especially the European country has just approved a program for development and cooperation with Vietnam for the period 2021-2024 which will support Vietnam in the application of digital technology solutions for anti-flooding in urban areas and technical support for the bus rapid transit route project in Ho Chi Minh City.
Furtherly, SECO also assisted to build the overall planning of Thu Duc City, promote the ability of climate change adaptation and develop smart urban traffic areas. The new cooperation program is suitable with Vietnam's strategic direction and will help Vietnam achieve sustainable growth.
The signed trade agreement between Vietnam and the European Free Trade Association (EFTA), of which Switzerland is a member, will contribute to promoting the economic exchange process between the two countries; and the trade balance between the two nations will be favorable for Vietnam. Vietnam and EFTA members have been heading towards the new generation of FTAs, which will not only reduce tariff barriers but also enhance protection of intellectual property rights and investment as well as capability of accessing the market and public projects.
• Supporting enterprises to join the global value chain
Currently, Vietnam has attracted over 100 Swiss corporations from multinational to small and medium scale companies in the fields of pharmaceuticals, construction, food processing, machinery, information technology, logistics and commercial activities.
Almost all the companies chose Vietnam for their business activities because the Southeast Asian country has a favorable business environment, a large domestic market, a young workforce, the ability to integrate into global and regional supply chains as well as development potentialities.
Recently, Vietnam and Switzerland have implemented the Trade Policy and Export Promotion (SwissTrade) project to improve the efficiency of trading activities and international competitiveness of medium and large-scale enterprises through bettering general regulations of trading policies, improving the public-private diplomacy mechanism and investment environment for trade promotion. The project was planned to implement in the period 2021-2024.
Besides, Switzerland concentrates on technical assistance projects to develop strategies for Vietnam's export-import development policy and to establish public-private diplomacy mechanisms to enhance exchanges of trade policies, facilitate trading and trade promotion activities between the private sector and state agencies.
The project will also enhance the capacity of business support organizations in providing export support services to Vietnam's small and medium-scale enterprises, aiming to improve their competitiveness and help businesses participate in the global value chain.
