Expert gives suggestions on Vietnam-Austria economic cooperation strategy
On the occasion of President Vo Van Thuong's official visit to Austria, Dr. Patrick Horvath, secretary general of Vienna-based think tank Foundation for Scientific Economic Policy (WIWIPOL) and a volunteer in Austrian cultural exchange and integration organisation “Asia in Vienna,” has written an article suggesting a three-fold economic policy strategy between Vietnam and Austria.
In his article, Horvath underlined that it is truly noteworthy and honorable that the Vietnamese President chose Austria as the first European destination of his term.
This visit has an impressive prior history, he held, noting that the previous state visit of Austrian Foreign Minister Alexander Schallenberg to Vietnam in April 2022 was widely acknowledged by Austrian society and sparked intense media coverage.
"Looking back from 2023 it is safe to say that this opportunity was taken to the fullest and the still ongoing activities certainly intensified Austrian-Vietnamese relations," he said.
The anniversary concert in Vienna’s prestigious concert hall “Konzerthaus”, the “Vietnam Cultural Days” in Palffy Palace in the heart of Vienna, and a donation of COVID-19 vaccination to the Vietnamese people by the Austrian government in recognition of the anniversary, are impressive examples of Vietnam’s new importance in Austria. It seems like a new dynamic in the Austrian-Vietnamese relationship has appeared.
"Now it is time to think ahead, develop a clear vision and take advantage of the momentum," he stressed.
The expert said a three-fold approach focusing on promoting industry investments, providing workforce, and establishing a “Green Partnership", will turn out to be most beneficial for both Austria and Vietnam because the mutual interests of the two countries meet exactly here.
In terms of promoting industry investments, there are many examples of fascinating stories of successful Austrian companies that are active or investing in Vietnam.
Delfort, a packaging company originating from the Upper Austrian town of Traun, runs a production facility near Ho Chi Minh City with exemplary social benefits for workers like free bus or health insurance, thereby exporting the Austrian social model to Vietnam and increasing its workers’ motivation.
Austrian industry is always looking for investment and business opportunities, and at the same time foreign direct investment contributes much to the Vietnamese budget and economy. The potential of Austrian industry investments in Vietnam may not yet reach its full potential, he stated.
According to private consulting agency “Source of Asia”, the Netherlands, an EU country with about 18 million citizens, pursues 421 investment projects in Vietnam with a total investment volume of nearly US$14 billion.
Austria is about half-sized in population compared to the Netherlands, so it can expect more than 200 projects with an investment volume of US$7 billion. There is much to win for both sides, so a public relations plan to promote Austrian industry investments in Vietnam might be a suitable option, he emphasised.
Over the provision of workforce, he noted that Austria is desperately seeking qualified workforce. One overarching reason for this situation is Austria's aging society.
He wrote that the president of Austrian Industry Association, Georg Knill, fears that in the long run 500.000 jobs will be vacant in Austria, which is a very high number for a small country with about 9 million citizens.
Dr. Horvath proposed that Austria should care more about the education of Vietnamese students and Vietnam with its growing population can offer many young, talented people. If they receive education in Austria and return to Vietnam with their knowledge and help to build up Vietnam, this is the best form of development aid Austria can give. If the employees stay in Austria, they can send money home to their families in Vietnam and at the same time help to decrease the lack of workforce in Austria.
Earlier, in another article written in 2021, the expert suggested the creation of a “green partnership” between Austria and Vietnam. He held that Austria can support Vietnam with technology it urgently needs and Austrian enterprises rightfully identify a great business opportunity here.