Two-way enthusiasm to push UK-Vietnam trade, investment: official
Vietnam’s economic resilience and its government’s enthusiastic emphasis on reform are likely to woo more British investors and boost bilateral trade this year, a top UK trade official said.
Gareth Thomas, Minister of State, UK Trade and Investment and Department for International Development, said he was convinced that the bleak economic forecasts facing Viet Nam this year would not scare away UK companies.
“What British businesses have been saying to me is actually they are not going to pull out. They want to stay here for the long term,” Thomas told Thanh Nien Daily during his visit to Viet Nam last week.
The Asian Development Bank forecasts Vietnam’s 2009 economic growth at 5% while the World Bank estimated the figure at 6.5%. Viet Nam posted an economic growth rate of 6.23% last year against the original target of 7%.
“They [British investors] recognize that it may be more difficult this year but they still believe there is going to be economic growth in Vietnam and there is still going to be an opportunity here to grow their businesses,” Thomas said.
Thomas was the second UK senior official over the last three months to stress that UK businesses in Viet Nam had long-term plans here. In another interview with Thanh Nien Daily last November, Ambassador Mark Kent also said UK firms would focus on Vietnam’s long-term potential.
UK investors in Viet Nam and outside the country are equally enthusiastic about business here, according to Thomas.
“British businesses not yet based in Viet Nam are still going to be trying to set up British arms in Viet Nam in the course of the next 12 months,” Thomas said.
He cited the example of betting firm Ladbrokes, which has been looking to offer services in Vietnam since the country began considering the legalization of football betting in 2006.
Thomas also said he was impressed by the confidence British businesses had about expanding their operations here. As an example, he cited the opening of HSBC Bank (Viet Nam) earlier this month, which is the first wholly foreign-owned subsidiary in the country.
“I am struck as well by the enthusiasm of the ministers and other representatives from the British government,” Thomas said. He recalled many high-level bilateral visits last year, including the UK visit of Vietnamese Prime Minister Nguyen Tan Dung in March.
Government support
One reason UK companies were confident in Vietnam was “the enthusiasm of the Vietnamese government (to improve the business environment) for foreign direct investment (FDI),” according to Thomas.
Thomas said that in a meeting with PM Dung last week, the Vietnamese leader had expressed his commitment to creating a business environment conducive to foreign investment.
Thomas said PM Dung had made clear his desire to discuss the European Chamber of Commerce report on business environment improvement with Vietnamese officials and ministers.
“I hope from that we’ll take a series of measures to improve the business environment in Viet Nam,” said Thomas.
He said the country could see more FDI as a result.
Vietnam attracted record quantities of FDI last year, both in pledges and disbursement, the Ministry of Planning and Investment said. Investors promised more than US$64 billion to Viet Nam in 2008, according to the Foreign Investment Department.
Thomas said he was confident bilateral trade would increase this year given the enthusiasm from both the Vietnamese government and British companies.
Thomas also revealed plans to go back to Brussels and argue for Europe to implement free trade agreements with individual economies in the ASEAN region like Vietnam or Singapore before signing similar deals with the whole region.
The UK is now the third largest European investor in Viet Nam. UK exports to Viet Nam were up 50 percent year on year by the end of September last year while Vietnam’s exports to the UK were up 17% over the same period.
TET MESSAGE FROM THE UK
UK Foreign Secretary David Miliband and Manchester United manager Sir Alex Ferguson sent their New Year’s greetings to Viet Nam on the first day of Tet (Lunar New Year), January 26.
Both Miliband and Ferguson, who spoke through a video on Ambassador Mark Kent’s blog (http://blogs.fco.gov.uk/roller/kent/), fondly referred to the huge support that Vietnamese fans have given to the Manchester United football club.
“I know that Manchester United has more fans in Vietnam than any other club in Britain. I do celebrate the fact that MU speaks for the best of Britain,” Miliband said. Ferguson said: “I just can’t wait to bring my team to Vietnam because I was told that we have more than 20 million fans there… We will be there soon.”
Miliband also said he was delighted that millions of British people are now seeing Vietnam’s development not only on television but also through the increasing numbers of tourists to Vietnam.
“I know 2009 is going to be an important year for Vietnam and I hope through the medium of sport we’ll be able to get closer and closer together,” he said. (TN)
