Vietnam-Hungary Business Forum Seeks to Grow Trade, Economic Cooperation
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.
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 firstname.lastname@example.org or visit www.dezshira.com.
Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
Import and Export: A Guide to Trade in Vietnam
In this issue of Vietnam Briefing Magazine, we provide you with a clear understanding of the current business trends related to trade in Vietnam, as well as explaining how to set up your trading business in the country. We also attempt to give perspective on what will be Vietnam’s place in the Association of Southeast Asian Nations (ASEAN) in 2015, and look at some of the country’s key import and export regulations.
Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam in order to effectively manage and strategically plan their Vietnam operations.
An Introduction to Doing Business in Vietnam 2014 (Second Edition)
An Introduction to Doing Business in Vietnam 2014 (Second Edition) provides readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance in the country.
- Previous Article Samsung Takes Advantage of Vietnam’s Developing Workforce – Expands Number of Local Employees
- Next Article Vietnam Ripe for Green Investment