Vietnam, Hungary leaders call for increased mutual investments

Vietnamese and Hungarian premiers Pham Minh Chinh and Viktor Orbán called for increased direct investment in both countries Friday, promising peaceful and stable environments amidst global geopolitical uncertainties.

Speaking at the Vietnam-Hungary business forum in Budapest, PM Chinh highlighted Vietnam’s achievements after nearly 40 years of economic renovation.

He noted that the country is now ranked among the world's top 40 economies by GDP and among the top 20 economies in terms of trade and foreign direct investment attraction, with 16 free trade agreements signed.

Vietnam was focusing on three strategic breakthroughs – improving legal frameworks, developing infrastructure and training human resources – while reforming its administrative procedures. These actions would help reduce input costs, improve corporate competitiveness and cut compliance costs for long-term and effective operations, he said.

Chinh also said that the country was renewing three traditional driving forces – export, consumption, and investment – while adding new growth drivers like digital economy, green economy, circular economy, and sharing economy.

He vowed to maintain an operating environment of peace, cooperation and development along with macroeconomic and forex stability for investors.

Chinh encouraged Hungarian enterprises to explore opportunities for expanding investment cooperation with Vietnam.

For his part, PM Orbán stated that Hungary supported the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA).

He said Hungary is committed to accelerating ratification of the EVIPA by other member states of the EU after it begins the presidency of the bloc in the second half of this year.

He highlighted the advantages that Hungary presented to Vietnamese investors, including a fast-growing economy compared to European peers, economic diversity and proven research and development capacity.

Orbán expressed hope for more balanced bilateral trade and called for increased Vietnamese investment in Hungary. To facilitate economic links, he proposed the establishment of direct flights between the two countries, further fostering people-to-people exchanges and promoting investment cooperation.

Allaying concerns that the Russia-Ukraine conflict could affect Hungary, Orbán stated that his country always advocated peace. “We will not have any policy to push Hungary into a conflict,” he said.

The Hungarian PM said he expected to visit Vietnam again in 2025 and listen to reports about specific outcomes of cooperation deriving from Chinh’s current visit.

According to Vietnamese government data, Hungary has invested in 21 projects with registered capital of a combined $72.26 million in the country as of 2023. This ranks it 52nd among 144 countries and territories with direct investments in Vietnam. Meanwhile, Vietnam has invested in two projects worth $5.8 million in Hungary.