Hungary PM vows to push faster ratification of Vietnam-EU investment protection agreement

As E.U. President for the last six months of 2024, Hungary will promote faster ratification of the EU-Vietnam Investment Protection Agreement (EVIPA), Prime Minister Viktor Orban said Thursday.

Hungary will push remaining countries in the bloc to ratify the agreement, he said in talks with visiting Vietnamese counterpart Pham Minh Chinh.

The EVIPA includes provisions on protection and investment dispute resolution mechanisms similar to a bilateral investment protection agreement (IPA) between an E.U. member and a non-bloc country. The agreement must be ratified by both the European Parliament (EP) and the parliaments of member countries. So far, 17 E.U. members have ratified the pact.

Hungary was the first E.U. member state to ratify the EVIPA. Previously, it had actively supported Vietnam in the process of negotiating and signing the E.U.-Vietnam Free Trade Agreement (EVFTA).

Orban also said Vietnam is one of Hungary’s most promising markets in the Asia-Pacific region and many Hungarian businesses are interested in expanding investment and business in the country.

He welcomed the organization of a Vietnam-Hungary business forum during Chinh’s visit, creating opportunities for direct exchange and connection between businesses of both countries. He vowed to create favorable conditions for Vietnamese enterprises to invest in Hungary in potential areas like information technology and auto industry.

Chinh asked Hungary to create favorable conditions for more Vietnamese goods to enter Hungary, especially agro-forestry-fishery products.

He said Vietnam stands ready to serve as a gateway for Hungarian commodities to access the Vietnamese and ASEAN markets.

After attending the 54th Annual Meeting of the World Economic Forum (WEF-54) in Davos, Switzerland, Prime Minister Pham Minh Chinh and his wife arrived in Budapest at noon January 18 (local time), starting a three-day official visit to Hungary.

Vietnam and Hungary boast more than 70 years of traditional friendship and multifaceted cooperation. In 2018, the two countries upgraded their relationship to a comprehensive partnership, making Hungary Vietnam's first comprehensive partner in central and eastern Europe.

Vietnam is one of the largest ASEAN exporters to Hungary, with turnover reaching $850 million in 2023.

Hungary now has 15 FDI projects in Vietnam with a total registered capital of $50.66 million, ranking it 55th out of 105 countries and territories with direct investments in the latter.