Vietnam an inspiring, innovative economy: UK trade minister

Vietnam is an inspiring economy and the most typical example of development in Southeast Asia, says Anne Marie Trevelyan, the UK Secretary of State for International Trade.

The country is known for its innovation and startup spirit, Trevelyan told an economic forum on the occasion of National Assembly Chairman Vuong Dinh Hue’s official visit to the UK from June 28-30.

She said trade ties with Vietnam are playing a very important role in the UK’s trade policy.

At the forum, in response to a question on Vietnam’s preparations to overcome difficulties in 2023, the chief of its legislative body Vuong Dinh Hue said despite the global economic recession during 2008-2009 or the worst Covid-19 period in 2020-2021, Vietnam still recorded positive GDP growth. Macroeconomic fundamentals remain stable, with inflation reined in at 2.45%

“Vietnam aims to become a higher middle-income country by 2030, and a high-income, developed country by 2045. We have kept our targets unchanged, only adding specific policies and measures.”

The country also aims to achieve net-zero emissions by 2050. Deputy Prime Minister Le Van Thanh told the forum Vietnam’s plan is to generate nearly 50,000 megawatts of wind and solar power by 2030, which means there would a very significant reduction in coal-fired and gas-fuelled power.

“However, energy transition is facing huge financing, expense, human resource and time requirements. We need the UK’s experience and financing and will introduce more investment incentives,” Thanh said, adding the power development plan VIII, over the years to 2030, could be approved in July.

A series of deals were signed on the sidelines of the forum. Binh Thuan authorities and Enterprize Energy signed a memorandum of understanding (MoU) on the latter’s support of the south-central province’s fishmen during its process to develop an offshore wind power project.

Another MoU was signed between Quang Binh and British Royal Caving Association on research, exploration and exploitation of caves in the central province, aiming to preserve natural value and bolster local tourism. Quang Binh is home to Son Doong, the world’s largest natural cave.

The third MoU involves cooperation between Royal Embassy Academy (REA) and North London Collegiate School Enterprise Limited (NLCSE) on establishing an international school system.

Another MoU was signed on introducing Pearson’s international English certificates via online exams in Vietnam between representatives of EMG Investment and Education Management JSC and Pearson Education Group.

During his visit to the European country, Hue met leaders of many big UK companies.

In a meeting with Hue, Prudential chairwoman Shriti Vadera said the insurer is delighted to be part of Vietnam’s development, and it can help with this process by issuing long-term bonds. The insurer pledged to cooperate with the Vietnamese government in green investment, insurance technology, and development of Ho Chi Minh City into an international financial center.

At his meeting with chairman of Standard Chartered Jose Vinals, Hue asked the bank to continue assisting Vietnam in developing corporate credit rating services and its corporate bond market, mobilising capital for green growth to realise commitments on climate change, and sharing experience to further develop Ho Chi Minh City into a financial center.

Vinals said his company would keep helping the country achieve a credit rating it can and need to obtain in future. He confirmed Standard Chartered pledges to make long-term investments in Vietnam while helping the country attract foreign financial investment in a sustainable manner, including providing about $8.5 billion in green finance and sustainable credit and helping promote the formation of a voluntary carbon market in Vietnam.

In another meeting, President of Pacific Land Partrick McKillen, which has been present in Vietnam for 30 years, said his firm is highly interested in infrastructure development and always invests revenue earned from its operations in Vietnam back into the country.

He asked Vietnamese authorities to support Pacific Land’s high biotechnology park in Hanoi (HaBiotech), adding that the company vows to use the best technologies for this project to develop a regional and world-level biotechnology park.

Chairman Hue said Vietnam is assessed as a successful country in FDI attraction, but it is switching the focus of its strategy to investors who have financial strength, apply high technology, and pay attention to industrial real estate.

He welcomed the HaBiotech project and added he would directly collaborate with Hanoi authorities to remove obstacles for this project.

Receiving Chris Cuddihy, director for UK and international government relations at Pearson, one of the oldest education groups in the world, the top legislator applauded the group’s signing of a cooperation deal with Vietnamese partner EMG Education during his visit.

Vietnam views education and training as a leading priority and wishes to enhance ties in this field with other countries, especially those with developed education like the UK, Hue told Cuddihy.

Talking with chairman of Enteprize Energy Ian Hatton, Hue spoke highly of the firm’s oil and gas investment in Asia and called on it to continue using the services supplied by Petrovietnam.

As Vietnam is working to increase the proportion of renewable energy like wind and solar power in its total supply network to carry out its COP26 commitments, Hue asked Enteprize Energy to transfer research outcomes and new technologies in this area to the country.

Hatton noted his firm is implementing Thang Long Wind, a 3.4 gigawatt offshore wind power project worth $11.9 billion, and Thang Long Wind 2, a 2 GW hydrogen production project, in Binh Thuan province. These projects will help turn Vietnam into one of the leading countries in this sphere in Asia, he said.

Vietnam-UK trade reached nearly $6.6 billion in 2021, up 17% from the previous year, Vietnam's Ministry of Industry and Trade data shows.

In May 2021, the UK-Vietnam Free Trade Agreement (UKVFTA) came into effect, paving the way for surging trade between Vietnam and the European nation.

Deputy PM Le Van Thanh said Vietnam aims to achieve bilateral trade of over $10 billion by 2023.

Maria Kotova, market entry advisor at global consultant firm Dezan Shira & Associates, in a recent podcast commented: "There are plenty of activities in Asia and something which is of particular interest to businesses in Great Britain at the moment is investment in the Vietnamese market."