Much room for Vietnam – Switzerland trade ties to grow further

Statistics show two-way trade turnover between Vietnam and Switzerland from 2016-2018 and 2020-2022 remained modest at around US$1 billion annually. Trade surpluses and deficits fluctuated significantly due to the import and export policies of certain special commodities. In 2019, total trade turnover exceeded US$2 billion, with exports reaching US$1.5 billion.

As of November 2024, the trade turnover between Vietnam and Switzerland exceeded US$732.7 million, with Vietnamese exports down by 10% to US$166.8 million, and imports down by 1.7% to US$565 million. Vietnam’s competitive export products in the Swiss market include seafood, textiles, handbags, footwear, handicrafts, tea, coffee, and spices. In recent years, Vietnam has consistently ranked among the top four seafood import markets for Switzerland, following Norway, France, and the Netherlands.

Currently, Switzerland is an important trading partner for Vietnam in Europe, while the latter is the former’s fourth largest trading partner in ASEAN.

During a recent meeting, Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Swiss Federal Council president Martin Candinas agreed that both countries still have great potential for stronger economic, trade and investment cooperation. They discussed specific areas of future cooperation in trade, investment, and development partnerships to step up cooperation in innovation, green economy, and sustainable development.

According to Nguyen Duc Thuong, Trade Counselor of Vietnam in Switzerland, trade and investment cooperation is the key pillar in bilateral relations that still has significant room for further development. As a bridge for promoting trade and investment, he said, the Vietnamese Trade Office will continue to introduce Vietnam’s potential, strengths, and investment opportunities to Swiss and European businesses, aiming to attract foreign investment.

To strengthen Vietnam-Switzerland trade relations, the Ministry of Industry and Trade has requested Switzerland, as an important member of the Switzerland, Norway, Iceland, and Liechtenstein group related to the Free Trade Agreement between Vietnam and the European Free Trade Association (EFTA), to play an active role in accelerating negotiations and bridging the gap between both parties, leading towards the conclusion and signing of the agreement. The agreement will serve as a catalyst to boost bilateral trade, facilitate market access for their products and build diverse and sustainable supply chains.

On the other hand, with its advantages and experience in fields such as automation, precision engineering, and high technology, Switzerland has been urged to increase investment in advanced industrial projects, high-tech industries, and modern management, aimed at connecting global production and supply chains. Furthermore, it has been asked to support the development of Vietnam’s basic industries, such as material industries, chemicals, machinery, supporting industries, processing, and manufacturing, while creating conditions or promoting Swiss direct investment in Vietnam in these areas, along with personnel training and technology transfer, in line with the country’s sustainable development goals.

Building on the positive results achieved in the Switzerland-Vietnam Cooperation Strategy for the 2021-2024 period, the Ministry of Industry and Trade will continue to promptly develop a new cooperation strategy for the next phase, focusing on improving the capacity of enterprises, particularly small and medium-sized enterprises in Vietnam.

The Prime Minister is scheduled to participate in the 55th Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland, along with high-level bilateral meetings there from January 21-23. His working trip is expected to open new opportunities for bilateral relations to grow further, especially in economics, trade and investment.