Vietnam supports stronger economic, trade ties with Hungary

Addressing the seminar, Deputy Prime Minister Le Van Thanh noted after more than 35 years of implementing the Doi Moi (Renewal) policy, Vietnam has made great strides in economic development, recording important gains.

Accordingly, it obtained an average GDP growth rate of 6% annually in the 2016-2021 period. Despite the impact of the COVID-19 pandemic, it secured GDP growth of 2.58%, making it one of the few countries in the world with positive economic growth.

Thanks to the effective implementation of the government’s strategy of living safely with COVID-19, socio-economic activities have returned to normal. The economy is expected to expand 6.38% in the first half of 2022 and 6.5%-7% for the whole year.

Deputy PM Le Van Thanh emphasized those gains could not be recorded without support and assistance from international friends, including Hungary.

“Hungary has always supported and assisted Vietnam in the cause of national defense and construction since the two countries established diplomatic ties in the 1950s,” he said.

Hungary actively supported the signing and ratification of the EU-Vietnam Free Trade Agreement (EVFTA). It was also the first country in the EU to ratify the EU – Vietnam Investment Protection Agreement (EVIPA). Two-way trade between the two countries saw a fourfold increase, from US$266 million in 2016 to US$1.3 billion in 2020.

However, he said the figure is still not commensurate with the cooperation potential of the two sides, especially when Hungary has great strengths in industrial development, electronics manufacturing, digital transformation, pharmacy, energy development, high-tech agriculture, and farm produce processing.

“These are also industries and fields in which Vietnam has potential and advantages,” noted Thanh., adding “Vietnam always respects and considers the traditional friendship and friendship relationship between the two countries a valuable asset that needs to be further preserved and promoted.”

He said the Budapest seminar creates the best opportunity for the two sides to share experience and open a new era for cooperation and development between the two business communities.

He assured that Vietnam builds the best environment with revised legislation, improved infrastructure and trained human resources in place to support business development.

The government always accompanies and creates all favourable conditions for Hungarian investors to make successful, effective and long-term investments in Vietnam, said the Vietnamese official.

Speaking at the seminar, Peter Andras Sztaray, secretary of state (Ministry of Foreign Affairs and Trade of Hungary), affirmed that the Hungarian business community wishes to promote trade cooperation with Vietnam.

The bilateral relationship between the two countries has been upgraded to a strategic partnership during Vietnamese Party General Secretary Nguyen Phu Trong’s visit to Hungary in 2018, opening up many new cooperation opportunities in many fields, he said.

Despite the COVID-19 pandemic, two-way trade between the two countries exceeded US$1 billion in the 2020-2021 period. Vietnam ranked 33rd among Hungary’s trading partners in 2021, with the trade turnover increasing by more than 10 times from 2012 to 2021.

Sztaray said the close relationship between the two countries serves as an effective tool for strengthening their trade ties in the coming time.

Representatives of Hungarian businesses raised some questions relating to investment procedures, financial options for consumer credit, software solutions for the smart factory model and the formation of a start-up ecosystem in Vietnam.

Deputy Prime Minister Le Van Thanh and representatives of Vietnamese ministries answered those questions, providing full information about issues of business concern.