PM expects new wave of Canadian investment into Vietnam

Saturday, 2018-06-09 11:08:24
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PM Nguyen Xuan Phuc speaks at the Vietnam-Canada Business Roundtable. (Photo: VGP)
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NDO – Prime Minister Nguyen Xuan Phuc has expressed his belief that in the favourable business environment created from the ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), there will be a new wave of investment flowing from Canada and Québec into Vietnam.

The Vietnamese PM, who is on a State visit to the North American country from June 8-10, spoke to investors attending the Vietnam-Canada Business Roundtable held in Québec, Canada on the afternoon of June 8 (local time).

Discussing Vietnam’s development, PM Phuc pointed out a series of Vietnamese economic records, such as its high economic growth, export-import turnover reaching US$425 billion, and foreign investment over US$37 billion in 2017. Vietnam is a large purchasing power market with average income at purchasing power parity of US$6,800. Foreign associations such as Eurocham, Jetro, Amcham and Kocham consider Vietnam a priority investment destination in ASEAN. Many transnational corporations choose Vietnam as a strategic manufacturing hub to connect to global supply chains.

He said he hoped that the Quebec business community in particular and the Canadian business community in general will be active partners in Vietnam's development process, adding that in March Vietnam and Canada signed and are ratifying the CPTPP. Accordingly, Vietnam commits to eliminating nearly 100% of its tariff lines, of which 65.8% will be marked down to zero immediately upon the CPTPP taking effect, creating favourable conditions for Canada's major export items to Vietnam, including salmon, beef and lobster.

The PM said that Vietnam is speeding up the restructuring of its economy, especially the restructuring of State-owned enterprises, including important ones operating in aviation, electricity, oil and gas, telecommunications and transport infrastructure.

"I think this process is a good opportunity for international investors, including those from Canada and the city of Québec, to buy shares and become strategic shareholders of Vietnam," PM Phuc said, giving the example of the Vietnamese authorities’ recent issuance of an investment licence for a solar energy project worth US$150 million in Ninh Thuan province with the participation of Canadian investors.

The Vietnamese top leader affirmed that Vietnam considers Canada as an important partner in the Americas. The two countries' economies have great potential, which are highly complementary to each other rather than competitive, he affirmed.

PM Nguyen Xuan Phuc calls for further Canadian investment into Vietnam. (Photo: VGP)

PM Phuc also pointed out that the current bilateral trade turnover of over US$6 billion has not met the demand and US$3.5 billion in investment has not met the capacity of Canadian investors in Vietnam. He expressed his hope that Québec, a world famous city with many famous investors, would have many projects in Vietnam in the near future. "The Vietnamese government and people are always open to welcoming you and creating the conditions for you to succeed," he pledged.

Welcoming PM Phuc and Vietnamese businesses to Québec, the city’s mayor, Régis Labeaume, discussed his city and its business community’s dynamism, which opens up opportunities to cooperate with Vietnamese enterprises. In particular, he highlighted Canada’s strengths in electronics, energy, environment, materials, financial services, life sciences and start-ups.

Vincent Joli-Coeur, Vice Chairman of the National Bank of Canada, praised Vietnam's reforms and innovations over the past 30 years. He also expressed his optimism about the economic development and investment opportunities in Vietnam.

At the event, PM Phuc directly responded to questions from Canadian businesses and witnessed the exchange of bilateral cooperation in science, technology, aviation, education and training between the two sides.

PM Nguyen Xuan Phuc witnesses the exchange of cooperation agreements between the two sides in the areas of science, technology, aviation, education and training. (Photo: VGP)