Austrian investment in Vietnam encouraged

The Vietnamese Government will create favourable conditions for Austrian businesses to invest and operate efficiently in the country, especially in the areas of their strengths such as transport infrastructure and railways, said Deputy Prime Minister Hoang Trung Hai.

Mr Hai, who is leading a high-ranking delegation of the Vietnamese Government to Austria, made the affirmation during a meeting with Dr. Reinhold Mitterlehner, Federal Minister for Economics, Family and Youth, in Vienna on February 13.

He expressed pleasure at the fine development of the friendship and cooperation between the two countries, but said their economic, trade and investment ties have yet to match their potential.

He proposed that Austria lobby the European Commission (EC) to recognise Vietnam’s market economy status and support Vietnam in its negotiations of a partnership and cooperation agreement (PCA) with the European Union (EU) to help the Southeast Asian nation further penetrate the multilateral trade system and expand economic ties with Austria and other EU member states.

For his part, Minister Mitterlehner affirmed that Austria will continue to grant official development assistance (ODA) to healthcare and railway development projects in Vietnam. He said his Government will encourage its small- and medium-sized businesses to explore and establish long-term links with their Vietnamese partners.

He agreed with Vietnam’s proposal to upgrade the Austria-Vietnam joint working group on economics, trade and investment to the Inter-Governmental Committee level to increase the efficiency of bilateral cooperation.

He praised Vietnam’s effective solutions to sustain a relatively high economic growth rate in 2008 despite the negative impact of the global financial meltdown and economic recession.

The same day, Deputy PM Hai met with the State Secretary of the Finance Ministry, Andreas Schieder, who assured that health care, transport infrastructure and environmental protection will be priority areas in bilateral cooperation.

Mr Hai noted that Austria has highly-developed science and technology and education, while a developing nation like Vietnam has a great demand for infrastructure construction. He said as the two countries signed an agreement on double tax avoidance, they should make full use of their potential to increase investment and trade exchanges for mutual benefit.

Mr Hai also met with the president of the Austrian Federal Economic Chamber (WKO), Christoph Leitl, and chief executive officers (CEOs) of several leading Austrian groups.

He briefed his hosts on Vietnam’s investment policies and affirmed the Government’s commitment to further improving its investment environment to attract foreign businesses, including those from Austria.

CEOs said that they will implement new projects in Vietnam, especially in health care and hydro-electricity.

Meanwhile, WKO President Leitl pledged to help Vietnam organise an investment promotion conference in Austria in October. He voiced his support for strengthening bilateral cooperation in education and training and conducting scientific research on health care, the maritime industry and tourism, as well as building laboratories in several universities in Vietnam.

While in Vienna, Mr Hai visited the Vietnamese Embassy and assigned new tasks to the ambassador and his assistants.

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