Vietnam Seeks Business Deals, Agreements on Sidelines of COP26
Vietnam was busy signing agreements and making deals on the sidelines of the COP26. As Vietnam slowly recovers its economy, business sentiment remains positive as showcased by deals signed with the governments and business entities of Australia, France, and the UK.
On the sidelines of COP26, Vietnam’s Prime Minister Pham Minh Chinh was involved in signing several agreements with state leaders, business organizations, and international organizations.
While issues related to climate change at COP26 were at the forefront, agreements and strategic partnerships were also inked on business, industries, and technology transfer. Meetings were held with several heads of state including the US, the UK, France, India, Japan, Ireland, and Kuwait.
Vietnam Briefing highlights major developments regarding business and agreements regarding the UK, France, and Australia.
UK – digital economy, renewable energy, and pharmaceuticals
Vietnam and the UK signed a cooperation agreement on the digital economy and digital transformation. As mentioned in our previous articles, Vietnam has been moving aggressively towards digital transformation. The two countries shared national programs and projects on the development of the digital economy and support measures for digital economic development. This includes the initiatives within the UK-ASEAN Digital Innovation Partnership and the Asia-Pacific Digital Trade Network.
In addition, Spanish renewable energy firm SGRE and Vietnam-based energy firm BCG energy signed an MoU to supply equipment and solutions for the development of wind farm facilities in Vietnam. SGRE also shared a proposal for establishing a wind power supply chain to enhance production capacity.
COVID-19 vaccine manufacturer AstraZeneca stated that it will invest US$90 million to support Vietnam improve its pharmaceutical production capacity. During the 2022-2030 period, it plans to make three pharmaceutical products in Vietnam while also supplying additional vaccines.
France – sustainable development, smart cities, and aircraft deliveries
Prime Minister Pham Minh Chinh met with Mathias Cormann, Secretary-General of the Economic Cooperation and Development Organisation (OECD) in Paris and also met with French President Emmanuel Macron. The two sides sought ways to boost strategic cooperation for sustainable development. At least 29 cooperation agreements were signed between ministries, agencies, and businesses of Vietnam and partners from France and the EU.
French multinational company Thales and Vietnamese state-owned VNPT signed an MoU on technical collaboration in areas of telecommunication satellites, smart cities, digital identity and biometrics as well as 5G, IoT, and cybersecurity. Low-cost carrier VietJet signed an agreement with commercial airplane manufacturer Airbus for 119 aircraft in the presence of Chinh and VietJet MD Dinh Viet Phong. In addition, during talks, Vietnam and France also stated that they will work together to set up projects regarding defense equipment.
Currently, French businesses have invested in 375 projects with a total value of US$3.1 billion in Vietnam and France is the second-largest EU country investing in Vietnam.
Australia – climate change, investment, and strategic partnership
Vietnam and Australia made a joint statement on climate change while also agreeing on economic strategy. The two countries reaffirmed commitments to take up renewables and address climate change challenges. Vietnam and Australia also finalized the Australia-Vietnam Enhance Economic Engagement Strategy. The strategy aims to deliver a detailed roadmap to deliver a joint ambition to become the top 10 trading partners and double two-way investment. The plan is expected to be released in the next few weeks though trade and investment levels are expected to accelerate in the 2021 to 2025 period. Australia also entered a comprehensive strategic partnership with ASEAN of which Vietnam is a member.
Vietnam’s recovery on track for 2022
These deals and the integration of Vietnam with free trade agreements and strategic partnerships bode well as the country recovers its economy and opens up for business. Vietnam’s commitment to climate change is also noteworthy.
Eurocham’s Business Climate Index (BCI) for Q3 shows that EU business leaders are optimistic about the country’s business environment and maintain the desire to increase their investment in Vietnam.
Vietnam’s National Assembly’s recent meeting proposed a GDP growth of 6 to 6.5 percent GDP growth year on year with a CPI of around 4 percent. The government’s goal will be to emphasize a plan on COVID-19 prevention measures and vaccinating the whole country. Key strategies in 2022 will involve improved public debt management and spending restraint.
In addition, the RCEP is expected to take effect in January 2022, further bolstering Vietnam’s trade efforts. While Vietnam suffered a significant extent due to the fourth wave and associated lockdown, its economy remains resilient and is expected to bounce back from next year.
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