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Nguyen Duc Thuong, commercial counselor of the Vietnam Trade Office in Switzerland, said that the two countries Vietnam-Switzerland still have much potential to promote investment cooperation in the industrial sector.

Citing statistics from the General Department of Vietnam Customs, Commercial Counselor Nguyen Duc Thuong said that by the end of June 2024, Switzerland has 214 valid investment projects in Vietnam with a total registered capital of US$2.028 billion, ranking 21st/146 countries and territories investing in Vietnam.

Nguyen Duc Thuong, commercial counselor of the Vietnam Trade Office in Switzerland, said that the two countries Vietnam - Switzerland still have a lot of potential to promote investment cooperation in the industrial sector.

In the first six months of 2024, Switzerland has seven new FDI projects with a total registered capital of US$1.14 million.

In addition, there are three times of adjusted projects with an additional adjusted capital of US$104.73 million, seven times of capital contribution and share purchase with a value of US$0.38 million.

Total registered investment capital in the first six months of 2024 reached US$106.25 million, an increase of more than 6.3 times compared to the same period in 2023.

Switzerland is the country with the 12th highest total registered investment capital among countries investing in Vietnam in the first six months of 2024.

Switzerland's registered investment capital in the first six months of 2024 increased sharply because Nestlé Vietnam decided to invest an additional US$100 million to double the processing capacity of high quality coffee lines at Nestlé Tri An factory, Dong Nai province, bringing the total investment capital at this factory to more than US$500 million.

Nestle Tri An factory has a production line with modern technology. Photo: Thuong-Giang

Commercial Counselor Nguyen Duc Thuong said that there are currently about 60 Swiss enterprises having direct investment activities in Vietnam. Swiss companies have created thousands of jobs in Vietnam through investment projects, positively contributing to Vietnam's socio-economic development. Most Swiss investment focuses on processing and manufacturing industries.

Vietnam is an attractive market for foreign and Swiss investment.

Vietnam is one of the fastest growing economies in Asia with a stable GDP growth rate. This dynamic growth creates an attractive environment for investment. Vietnam's location in Southeast Asia provides access to major shipping routes and proximity to other major markets, including China, Japan and ASEAN countries.

Swiss businesses appreciate the FTAs ​​that Vietnam has participated in, especially new generation FTAs ​​such as EVFTA and CTTPP.

Administrative reform to attract investment from Switzerland

Besides the advantages, investment activities between the two countries also face many difficulties, including the fact that the two countries do not have a bilateral trade agreement.

In the coming time, Vietnam will have to compete in attracting investment, especially with countries in the Asian region such as India, Indonesia, Thailand, Malaysia or the Philippines.

The fact that the two sides do not have an FTA is also a challenge for Swiss businesses that want to expand business investment in Vietnam.

Meanwhile, India just signed an FTA with the EFTA bloc in early 2024. In the ASEAN region, Singapore, Indonesia and the Philippines already have FTAs ​​with the EFTA bloc, while Thailand and Malaysia are also negotiating FTAs ​​like Vietnam.

Due to the characteristics of the Swiss economy, the fundamental industries that Vietnam can promote to attract investment from this country are mechanical engineering, medical equipment, pharmaceutical chemistry, information technology-digitalization, and food industry.

Vietnam should promotes negotiations and signing of FTAs ​​with the EFTA bloc (including Switzerland) to create a favorable legal foundation for trade exchange, investment and industrial cooperation between the two countries.

Vietnam also needs to continue promoting infrastructure modernization, including transportation networks, energy supply and digital connectivity to reduce operating costs and improve efficiency for businesses.

Vietnam takes advantage of the good diplomatic relationship between Vietnam and Switzerland, promoting closer cooperation through bilateral cooperation agreements and exchange of delegations.

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