The
UK is pushing hard in all areas of business relations with Vietnam.
With bilateral trade expected to hit US$3
billion within the next year, ties between Vietnam and the UK are in a “very
healthy position,” said Tim Brownbill, Consul-General for the UK in Ho Chi Minh
City.
Brownbill, also director of the UK Trade and
Investment for Vietnam, told a press briefing Tuesday that the UK is
increasingly buying a lot of Vietnamese commodities. There is a high
possibility that seafood, clothes and shoes bought in the UK now are products
coming from Vietnam, he said.
“Vietnam is beginning to make a big impact on
the daily lives of consumers in the UK,” he said, adding bilateral trade
already reached the $2-billion point last year.
Brownbill said total investment of UK
companies in Vietnam, which now stands at $2 billion, can also be expected to
rise to $3 billion by the end of next year.
“The reason I’m confident that we will see
these increases is that we’re seeing a number of big investments start to come
online,” he said, citing the launch of a £1-billion project by oil explorer
Premier Oil this week as an example.
The launch of direct flights from both Hanoi
and HCMC to London in early December will help boost both business and cultural
relationship further, Brownbill said.
The highly anticipated direct services were
greenlighted by UK and Vietnamese officials in May, only a few months after the
countries signed a strategic partnership agreement to strengthen ties.
Officials also said the timing of the direct
flight was good as the London 2012 Olympic Games are to begin just a few months
later.
Brownbill said Vietnam Airlines has begun
promoting the new flights in London, already trying to bring more British
tourists to Vietnam.
Financial sector
Apart from the energy sector, with major oil
firms like Premier Oil and Soco aiming to expand their presence in Vietnam, UK
investors are particularly strong in the financial services area, Brownbill
said.
The UK is the third largest EU investor in
Vietnam, but it is the largest foreign investor in the financial services
sector alone. Many UK financial institutions, including Standard Chartered,
HSBC and Prudential, have operations in Vietnam.
In an attempt to raise awareness of the strength
of the UK in this sector, the UK Trade and Investment will launch a training
program in HCMC.
Brownbill said over six weeks, UK experts will
work with about a hundred Vietnamese young professionals in financial services
to develop their knowledge and skills.
The program will be inaugurated by Business
Secretary of State Vince Cable, who will pay a three-day visit to Vietnam early
next month. The cabinet minister will also attend talks held by the Vietnam-UK
Joint Economic and Trade Committee, a bilateral mechanism for businesses that
Brownbill said the UK does not set up “with just anybody.”
The UK is trying to boost its profile in other
sectors as well. The consul-general said UK investors want to be “bigger” in
infrastructure, retail and education in Vietnam.
UK aid
Brownbill said while the UK keeps offering
more expertise and services to Vietnam, the relationship should be a two-way
process.
“As the Vietnamese economy develops, we’re
actually looking at Vietnamese investment in the UK,” he said.
Speaking at the press briefing, UK Deputy
Ambassador Kate Harrison said now that Vietnam has achieved the middle-income
status, it will face decreases in international aid.
In May, the UK pledged to provide Vietnam with
up to £70 million ($110 million) in grant aid until 2015. Harrison confirmed
that the aid would come to an end by 2016.
Until then, the UK is very focused on moving
toward a sustainable exit and working in partnership with Vietnam to make “the
best possible use” of its resources, Harrison said.
The Department for International Development,
a UK aid management agency, is working on areas related to the Millennium
Development Goals, such as HIV/AIDS and sanitation, as well as newer areas like
climate change, governance and science, she said.
The UK is also keen to support the development
of human resources to enable Vietnam fulfill its potential, she added.
‘Slow-burn’ market
Harrison said Vietnam needs to address
long-term structural economic issues and offer more support to the private
sector.
With the increased risk in the current global
economic situation, investors would look for the best business environment, the
deputy ambassador said.
It’s a great time for investors to be in
Vietnam, but progress should be made in terms of the country’s commitment to
the World Trade Organization obligations, she said.
Harrison emphasized that a sense of certainty
would be very important for investors too, noting that some of the new
restrictions and unexpected regulations may send negative signals to businesses
about the market.
Brownbill said some of the biggest obstacles
for foreign investors in Vietnam have to do with transparency in decision
making. Licensing applications, for instance, can take a long time and it’s not
always clear how certain rules will be implemented.
But he believed the success story of many UK
companies that came to Vietnam in the 1990s may tell something about the market.
“There are undoubted problems and obstacles
that need to be addressed and overcome, but I think it is correct to balance
that with the successes,” Brownbill said.
Vietnam is a “slow-burn” market and it
requires patience and perseverance from investors to realize the potential, he
said.
By Minh Tri, Thanh Nien News
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment