Prime Minister Xavier Bettel visits Ho Chi Minh City: Luxembourg is the “gateway” to Europe

At the forum, the Luxembourg Prime Minister said that Prime Minister Pham Minh Chinh 's visit to Luxembourg in December 2022 demonstrated the potential cooperation between the two countries. Prime Minister Xavier Bettel said that Luxembourg cooperates in many fields of investment in Vietnam and believes that the support of both sides will help the development of the two countries continue in the future.

Prime Minister Xavier Bettel speaks on the morning of May 5. Photo: Thanh Long

Prime Minister Xavier Bettel said that Luxembourg wishes to support deeper cooperation and develop together with Vietnam in many fields. Specifically, the Luxembourg delegation came here to support the development of Vietnam's freight transport. Luxembourg is a major investment partner in Vietnam and a gateway to Europe. The Prime Minister of Luxembourg assessed that green economy is a key area for investment cooperation, while education is an important area that needs attention to help young people be able to respond to fluctuations and risks in the world.

Prime Minister Xavier Bettel attended the Vietnam-Luxembourg Business Forum on the morning of May 5. Photo: Thanh Long

Also at the forum, Minister of Industry and Trade Nguyen Hong Dien said that in recent years, trade relations between Vietnam and Luxembourg have had positive developments. In 2022, total bilateral trade turnover increased by 3.1% compared to 2021, reaching 187.11 million USD. In the first 3 months of 2023 alone, bilateral trade reached 42.45 million USD, equal to 22.7% of the whole year of 2022.

According to the Minister, the visit of the Prime Minister of Luxembourg shows that trade and investment are always a priority area in the bilateral cooperation relationship. Two-way trade turnover has tripled in the past 5 years. In the first quarter of 2023, trade between the two countries continued to grow strongly. Luxembourg is the second largest investor in the European Union in Vietnam. Vietnam is also considered one of the fastest growing economies in the region and the world.

Minister of Industry and Trade Nguyen Hong Dien. Photo: Thanh Long

Economic growth in 2022 is expected to reach 8.02% over the same period last year, the highest growth rate in the 2011-2022 period. In terms of foreign trade, Vietnam is one of the top 20 economies in international trade with import-export turnover reaching about 375 billion USD in 2022. In terms of foreign investment, Vietnam has been highly appreciated by the international community as a safe and attractive investment destination with the presence of nearly 35,900 FDI projects from 141 countries and territories.

In the context of unpredictable developments in the world, the two countries need to cooperate more closely in the investment sector to respond and enhance the resilience of each country's economy. The two countries have great potential to continue expanding bilateral trade, the structure of import and export goods on both sides, not only not competing directly but also supporting each other. This is a favorable condition for businesses of the two countries to build and strengthen cooperative relations and diversify supply chains, especially for products that one side has strengths and the other side has demand for, such as garments, agricultural products, seafood of Vietnam or chemicals, steel production, banking and financial services, insurance of Luxembourg.

Signing ceremony of the Memorandum of Understanding on cooperation between the Vietnam Federation of Commerce and Industry and the Luxembourg Chamber of Commerce. Photo: Thanh Long

The opportunities and advantages that are opening up in the relationship between the two countries will be an important foundation to create more motivation and confidence for the business communities of the two countries to expand investment, production and business. Thereby, bringing the trade relationship between the two countries to a new level, increasingly going into depth, efficiency and bringing practical benefits.

Also at the event, Vice Chairman of the Ho Chi Minh City People's Committee Vo Van Hoan said that Ho Chi Minh City always considers Luxembourg an important partner. To date, Luxembourg is the 13th largest investor with 29 projects and a total investment capital of nearly 408 million USD. In terms of trade, the total import-export turnover between Ho Chi Minh City and Luxembourg in 2021 reached 55.5 million USD and in 2022 reached 82 million USD.

Mr. Hoan said that this figure is still modest compared to the potential of both sides and hopes that businesses of both sides will take advantage of each other's market access, thereby promoting trade to develop more strongly. Ho Chi Minh City aims to develop into a national financial center with a solid foundation from 2021-2025 and prepare the necessary conditions to become a regional financial center from 2026-2045. In this development process, in addition to its own efforts, Ho Chi Minh City wants to learn from Luxembourg's experience in building and operating a green financial center, and at the same time call on large financial groups to invest in this field in Ho Chi Minh City.

Vice Chairman of Ho Chi Minh City People's Committee Vo Van Hoan. Photo: Thanh Long

Ho Chi Minh City is committed to improving the investment environment and creating favorable conditions for foreign enterprises, including those from Luxembourg, to invest in Ho Chi Minh City. According to Mr. Hoan, the success of today's business forum, along with the signing of a memorandum of understanding between the Vietnam Chamber of Commerce and Industry and the Luxembourg Chamber of Commerce, will open up many new opportunities for effective and successful cooperation for businesses of the two countries.

Signing ceremony of the Memorandum of Understanding on cooperation between the Vietnam Federation of Commerce and Industry and the Luxembourg Chamber of Commerce. Photo: Thanh Long

Source: https://nld.com.vn/thoi-su/thu-tuong-xavier-bettel-tham-tp-hcm-luxembourg-la-canh-cong-den-chau-au-2023050513053331.htm