Switzerland to support Vietnam’s transition to green economy

Switzerland is committed to supporting Vietnam’s transition to a green economy by adopting circular economic practices and digitalization.

Vietnam’s Deputy Prime Minister Tran Hong Ha and Switzerland’s Economy Minister Guy Parmelin.

Swiss Finance Minister Guy Parmelin underlined this view in a meeting on January 16 (local time) with Vietnamese Deputy Prime Minister Tran Hong Ha, who is in Davos to attend the annual World Economic Forum (WEF).

At the meeting, both sides expressed delight at the strong progress of Vietnam-Switzerland relations over the past 50 years, especially in politics-foreign affairs, economy, science-technology, education, and training.

During the first 11 months of 2022, bilateral trade turnover reached US$721.3 million, while Switzerland currently has 197 foreign direct investment projects in Vietnam with total investment capital of $1.89 billion, ranking 21st out of 140 countries and territories having investment projects in the country.

According to Deputy Prime Minister Ha, with a population of nearly 100 million, being a member of 15 free trade agreements, and having a strong drive to adopt sustainable low-carbon economic models, Vietnam is fast becoming an attractive market with huge potential for economic cooperation, investment, and trade for foreign investors.

He urged Switzerland to continue promoting investment in Vietnam, especially in projects that use high technology, are environmentally friendly, adopts modern corporate governance models and provide high-added value.

“Such projects with high spillover effects could help local companies better integrate into the global value chains,” Ha said.

Overview of the meeting.

Ha called on Swiss authorities to continue creating favorable conditions for companies committing long-term business in Vietnam, focusing on fields of high priority such as finance banking, insurance, manufacturing and processing, pharmacy, renewables, and tourism.

Ha added that for Vietnam to adopt green economic models using clean energy and reach zero net carbon emissions by 2050, the Government is exploring new cooperation mechanisms with international partners, including Switzerland.

For his part, Swiss Economy Minister Parmelin highlighted Vietnam's commitment to drastically reduce carbon emissions at COP26 and congratulated the country for reaching an agreement on the Just Energy Transition Partnership (JETP) with the G7.

He added that Switzerland is ready to support Vietnam in pushing toward rapid and sustainable economic development.

On the progress of a free trade agreement between Vietnam and the European Free Trade Association (EFTA), the two sides agreed to maintain close cooperation and push for the early conclusion of the process, for which Switzerland considers Vietnam a gateway for the country to access the ASEAN market.

He has suggested that Switzerland, with an advanced education system and a wealth of experience in science and technology, share its experience and support Vietnam in innovation, digitalization, and training high-quality human resources.

The two officials chaired a meeting with Swiss investors and businesses in the insurance, retail, healthcare, pharmaceutical, and manufacturing sectors. Swiss business representatives expressed their impression of Vietnam's strong economic recovery and its positive outlook for the future.

They shared that the early conclusion of a free trade agreement between Vietnam and EFTA would boost a strong wave of investment by Swiss companies in Vietnam.