New Flows of Trade to Enhance Relations Between Luxembourg and Vietnam

New flows of trade and commercial co-operation are expected to enhance relations between Luxembourg and Vietnam in the near future, participants at a seminar heard yesterday.

“It is my firm belief that Vietnam and Luxembourg can and will work together in shaping a mutually beneficial future,” said Henri Albert Gabriel Felix Marie Guillaume, the Grand Duke of Luxembourg.

 ”Uniting our efforts, economic and trade co-operation between Vietnam and Luxembourg will have an even brighter and prosperous future.”

Pierre Gramegna, director general of Luxembourg Chamber of Commerce, said the two countries had experienced fast economic development since the global crisis in 2008.

The seminar was part of a four-day visit to Vietnam by the grand duke, the minister of the Economy and Foreign Trade, and director general of the Luxembourg Chamber of Commerce.

Representatives from 20 Luxembourg businesses are participating in the visit. They represent businesses in the automotive industry, satellites, air freight, finance, dredging, architecture and sustainable construction and eco-technologies, among others.

Guillaume said the presence of the delegation of senior Luxembourg representatives from the private sector showed that they were aware of business opportunities in Vietnam.

“We committed both our governments to strengthen co-operation on trade and investment, research and development, communications and environmental technologies,” Guillame said.

Luxembourg signed an agreement in the finance and banking sector to help Vietnam develop its financial industry.

Although the Vietnamese Government had created a favourable business climate, it still should make the economy more open and have fewer restrictions to encourage investment, he said.

 Ideal access

Located at the heart of Europe, Luxembourg is an ideal gateway for Vietnamese businesses to access the European market with over 500 million consumers. Thanks to its strategic location, 80 per cent of the European Union’s GDP can be serviced within a radius of 700km.

Given the stable outlook, the extremely strong creditworthiness and its high prosperity, Luxembourg is one of the few remaining European countries to have an AAA rating.

Luxembourg-based companies such as Paul Wurth and ArcelorMittal are already established in the Vietnamese market, having completed infrastructure projects.

Satellite operator SES has participated in a Vinasat project, the dredging company Jan de Nul is taking part in a dredging and reclamation work at the Ha Tinh Steel Mill Complex, and the air-cargo company Cargolux operates fours weekly flights from Luxembourg to HCM City and Ha Noi.

Direct flights would help enhance trade between the two countries, he said.

Jeannot Krecke, Luxembourg’s minister of the economy and foreign trade, said Vietnam was one of 10 key countries in the Luxembourg Government’s Development Cooperation Programme.

For the 2011-15 period, Luxembourg pledged to provide 42 million euros (US$60 million) for Vietnam, focusing on healthcare, training in finance and banking, and education.

Luxembourg and Vietnam have a long history of co-operation which goes back to 1993. Luxembourg has funded projects relating to health care, tourism, banking, finance, education and training.

Le Manh Ha, deputy chairman of the HCM City People’s Committee, said Luxembourg currently had eight projects in the city.

He said that Vietnam wanted to attract more investment from the country, especially in the fields of insurance, securities and finance.

By Quynh Hoa (VietnamNews)