Processing tra fish for export at Sao Mai Group's factory (An Giang province). Photo: Vu Sinh/VNA

Over the past 50 years of establishing diplomatic relations, Vietnam and Switzerland have built and developed an increasingly strong relationship in all fields, including economic and trade cooperation.

In particular, the two countries always cooperate closely and support each other at multilateral forums and international organizations. Moreover, Switzerland is an important trade partner of Vietnam in Europe and Vietnam is Switzerland's 4th largest trade partner in ASEAN. Therefore, the Prime Minister and the high-ranking delegation attending the 55th Annual Meeting of the World Economic Forum (WEF) in Davos, Switzerland and working bilaterally are expected to open up many new opportunities in the relationship between the two countries. Potential partners According to experts, although Switzerland is a country without many natural resources, with a mainly mountainous terrain, a small area, and a small population, it is one of the countries with the most developed industrial production and the highest standard of living in the world, focusing on mechanical engineering (hydroelectric turbines, sophisticated watches), textiles, food processing, pharmaceuticals, chemicals, and wood processing.

Citing data from Vietnam Customs, the European - American Market Department (Ministry of Industry and Trade) said that the total import-export turnover between Vietnam and Switzerland in 2016 - 2018, 2020 - 2022 remained at nearly 1 billion USD; in which, trade surplus and trade deficit often fluctuate greatly according to the import-export policy of some special items (gold, precious metals). In 2019, the total turnover was more than 2 billion USD, with exports reaching 1.5 billion USD and imports reaching 719 million USD.

By the end of November 2024, the total import-export turnover between Vietnam and Switzerland reached more than 732.7 million USD. Of which, exports from Vietnam reached 166.8 million USD, down 10%, imports from Vietnam reached more than 565 million USD, down 1.7% compared to 2023. Vietnamese products with competitive strengths in the Swiss market include seafood products, textiles, handbags, footwear, handicrafts, tea, coffee, spices... In recent years, Vietnam has always been in the top 4 largest seafood import markets of Switzerland, after Norway, France and the Netherlands.

According to the European - American Market Department, in 2020, the Trade Promotion Agency (Ministry of Industry and Trade) signed a Memorandum of Understanding with the International Trade Center (ITC) on financial support through the form of matching teaching costs as well as accommodation costs for lecturers participating in 12 training courses in a number of provinces and cities for small and medium-sized enterprises in Vietnam.

In addition, the database system of processing, manufacturing and supporting industries in Vietnam: was built on the basis of cooperation between the Department of Industry (Ministry of Industry and Trade) and the International Finance Corporation (IFC) - a member of the World Bank Group with funding from the Swiss State Secretariat for Economic Affairs (SECO). This is an important milestone to address the need to form a domestic and foreign connection network, helping businesses and investors find information quickly and accurately, meeting the need for investment connection, enhancing cooperation opportunities between Vietnamese businesses and FDI enterprises, multinational corporations. In addition, the Supplier Development Program (SDP) is coordinated by the Department of Industry with IFC and funded by SECO to enhance the capacity of Vietnamese supporting industry enterprises, moving towards participating in the global value chain.

The program has the participation of 8 multinational corporations (Canon, Toyota, Panasonic, Denso, Bosch, GE and Schneider Electric) and 45 enterprises in the fields of electronics, automobiles, and mechanical engineering. Notably, there are currently more than 100 Swiss enterprises operating in Vietnam, with Swiss investment present in 12 localities. These enterprises have created about 20,000 jobs for the Vietnamese market. As of October 2024, Switzerland had 218 projects with a total registered capital of more than 2.1 billion USD, ranking 20th out of 148 countries and territories with direct investment in Vietnam. Promote cooperation

At the meeting with Mr. Martin Candinas, President of the Swiss Federal Council, Minister of Industry and Trade Nguyen Hong Dien expressed his gratitude for Switzerland's support for many projects in the fields of industry, energy, international economic integration, and support for small and medium enterprises for Vietnam in general and the Ministry of Industry and Trade in particular. This is a valuable resource that has actively contributed to the development and integration process of Vietnam over the past years.

The Minister and the President of the Swiss House of Representatives shared the view that the bilateral relations between Vietnam and Switzerland in the fields of economics, trade, and investment have developed well but still have a lot of potential and need to be further promoted. In addition, the two sides discussed specific cooperation orientations in the coming time in all three aspects of trade, investment, and development cooperation to promote cooperation in the fields of innovation, green economy, and sustainable development.

Minister Nguyen Hong Dien suggested that Switzerland, with its advantages and experience in the fields of automation, precision mechanics, and high technology, increase investment in advanced industrial projects, high technology, and modern management to help connect the global production and supply chain. In addition, support the development of Vietnam's fundamental industries such as materials, chemicals, mechanics, supporting industries, processing, and manufacturing. On the other hand, create conditions or promote direct investment from Switzerland in Vietnam in these industries along with the process of training human resources and transferring technology, towards realizing Vietnam's sustainable development goals.

Recently, during a survey trip to Switzerland, Mr. Pham Dinh Nghi - Deputy Secretary of the Provincial Party Committee, Chairman of the People's Committee of Nam Dinh province pledged to strongly support and create the most favorable conditions for Swiss investors and businesses to survey and learn about investment in the province; Any difficulties and problems of investors will be directly supported and resolved promptly and effectively by provincial leaders. In particular, Nam Dinh always considers the success of investors and businesses as the success of the province and always welcomes investors as citizens of the province. Nam Dinh really hopes that Swiss investors will choose the province as a place to develop projects.

Similarly, the People's Committee of Thai Binh province is organizing many activities in Switzerland and some European countries to introduce the potential and strengths of the locality to attract investors.

Mr. Nguyen Quang Hung, Permanent Vice Chairman of the Provincial People's Committee, said that economic cooperation between Thai Binh and Switzerland has good prospects. In 2023, the province's export turnover to Switzerland reached 1.2 million USD, accounting for 0.05% of the total export turnover of the whole province, so there is still much room for cooperation and development between the two sides. Thai Binh is committed to creating all favorable conditions for Swiss investors to cooperate, invest and succeed in the province in the coming time.

According to Nguyen Duc Thuong, Vietnam Trade Counselor in Switzerland, trade and investment cooperation are two important pillars in the relationship between Vietnam and Switzerland and there is still much room for further development. As a bridge to promote trade and investment, the unit will continue to coordinate to promote and introduce the potential, strengths and investment orientation of Vietnam in general and Thai Binh in particular to the Swiss and European business community, contributing to attracting foreign investment.

In order to promote the Vietnam - Switzerland trade relationship, the Ministry of Industry and Trade proposed that Switzerland, with its important role in the group of Switzerland, Norway, Iceland and Liechtenstein related to the Free Trade Agreement between Vietnam and the European Free Trade Association - EFTA, have a voice to promote the negotiation process, reduce the gap between the two sides to be able to move towards the conclusion of negotiations and signing. This will be a lever to promote bilateral trade, creating conditions for the goods that are strengths of the two sides to access and develop in each other's markets, together building a diverse and sustainable supply chain of goods.

On the other hand, with its advantages and experience in the automation, precision mechanics and high technology industries, the Ministry of Industry and Trade proposed that Switzerland increase investment in advanced industrial projects, high technology, modern management to help connect the global production and supply chain. Furthermore, support the development of Vietnam's fundamental industries such as materials, chemicals, mechanics, supporting industries, processing and manufacturing; facilitate or promote Swiss direct investment in Vietnam in these industries along with the process of human resource training and technology transfer, towards realizing Vietnam's sustainable development goals.

In addition, the Ministry of Industry and Trade continues to promote the positive results achieved in the Cooperation Strategy between Switzerland and Vietnam for the period 2021 - 2024 and quickly build a Cooperation Strategy for the next phase in the direction of continuing to focus on supporting the improvement of business capacity, especially small and medium enterprises in Vietnam. In particular, support Vietnam in the process of digital transformation and energy transformation to achieve the Net zero target by 2050; improve the capacity to plan and implement development policies in Vietnam as an essential part of implementing international commitments that Vietnam has participated in.

Source: VASEP