Vietnam - Austria business forum boasts great potential for bilateral ties

The event was co-organised by the Vietnam Chamber of Commerce and Industry (VCCI) and the Austrian Embassy.

Since the EU-Vietnam Free Trade Agreement (EVFTA) has come into effect both Vietnam and Austria have opportunities to diversify their markets and enrich consumers' choices. Amid this context, the forum presents a chance for their distributors, importers, and firms to meet, exchange information, and form partnerships.

As part of his remarks at the function, Nguyen Quang Vinh, vice president of the VCCI, said both sides share a sound traditional friendship and all-around co-operation, with Austria among the first European nations to establish diplomatic ties with Vietnam, with this year marking the 50th anniversary of diplomatic ties.

Through the development and international integration process, Vietnam always places great importance to boosting co-operation with traditional friends, including Austria, Vinh stated.

From the Austrian perspective, Barbara Eibinger-Miedl, regional minister for Economics, Tourism, Europe, Science, and Research at the State Government of Styria, introduced her state, a locality leading Austria in terms of research and development.

According to her, Styria stands out for its range of innovative products and services. It represents one of Austria's five states that enjoy trade surplus, with its exports worth EUR26 billion, equal to US$25.58 billion, and imported goods valued at EUR19.5 billion in 2019. Their overseas shipments accounted for 17% of the total national exports, ranking second after Upper Austria.

Austria and Styria greatly value the co-operation that exists between Vietnamese and Australian firms, the official affirmed.

Members heard at the event that along with the strong development of political relations over the past years, mutual economic and trade ties have made remarkable progress. Bilateral trade turnover neared US$3.5 billion in 2021. Currently, Austria is among the top 10 Vietnamese trading partners in the EU. Their collaboration has also recorded positive growth in the fields of science-technology, culture, and development co-operation.

Vocational training is now in great demand from both sides. A survey conducted by the Embassy of Vietnam in Austria reveals that the Central European country is in need of workhands right now, especially in the service sector to provide staff for restaurants, hotels, and resorts, among others.

With a population of only 1.25 million people, Styria is the second largest among the nine Austrian states and boasts huge potential for close co-operation with Vietnam, especially in the automotive, mechanical, and electronic industries.

Many major enterprises from the state have successfully co-operated with the Vietnamese side in the fields of energy and industry. For example, Andritz Group has participated in many key hydropower projects in Vietnam.

Moreover, Magna Steyr and AVL List have helped with the design of cars by VinFast, the automotive arm of Vietnam's conglomerate Vingroup.

By taking advantage of the EVFTA, Styria’s enterprises have many more opportunities to strengthen and expand joint works with Vietnam, while the state can ramp up its co-operation with the country in areas such as training and research, tourism, and culture.

An article recently published in Austria's Kronen Zeitung newspaper said the Vietnamese economy is currently booming and features the presence of more and more foreign firms and investors, a trend that enterprises from Styria do not want to miss out on.

It quoted Minister Eibinger-Miedl as saying that there are ample opportunities ahead for Austrian firms to invest in the Vietnamese market, particularly in energy technology and environment, design and construction, as well as green technologies.

Robert Brugger, chief executive of the Internationalisation Centre in Styria, said after two years of closure due to COVID-19 pandemic, now is the right time for Styria to rise again, while Vietnam has also returned to its growth trajectory in a spectacular way.

Data compiled by the Austrian Federal Economic Chamber (WKO) indicates that in 2021, Styria exported EUR28 million worth of goods to Vietnam while spending EUR147 million on imports from the country.