Vigorous Vietnam-France economic cooperation brings win-win outcomes

The complementary nature of the two economies means that strong Vietnam-France economic cooperation would result in a win-win outcome for all parties.

Overview of the business forum. Photos: Pham Hung/The Hanoi Times

Vietnamese Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc made the remarks at the Vietnam-France Business Forum held today [April 15], which attracted nearly 500 delegates from localities in Vietnam and France.

Speaking at the forum, Ngoc said that despite the challenges posed by the Covid-19 pandemic, Vietnam's economy has made significant progress thanks to effective policies that have been highly appreciated by the international community. "In particular, the potential for cooperation between Vietnam and France remains huge in the near future," Ngoc said.

Vietnam has recently launched a support package worth about 8.3% of its GDP and is implementing a US$16 billion economic stimulus program in 2022 to support production and business, as well as social security and job creation, in order to maintain its economic growth momentum.

France has been a major investor, trader, and development aid partner for Vietnam. With a registered capital of more than $3.8 billion, it ranks 16th among the 143 countries and territories investing in Vietnam.

Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc.

Total import-export turnover between Vietnam and France is expected to reach $5.33 billion in 2022, with Vietnam earning $3.7 billion worth of exports from France. France has also been a leading provider of ODA, with steadily increasing committed capital, and is one of the earliest ODA providers in Vietnam.

The Deputy Minister of Planning and Investment said that Vietnam and France have favorable conditions to expand their investment cooperation. As an active and responsible member of ASEAN, Vietnam has committed to and effectively implemented the National Strategy for Green Growth, promoting environmentally sustainable development and social justice. Meanwhile, France is a key member of the European Union and a leading participant in the Francophone community. Both countries are also part of the Vietnam-EU Free Trade Agreement (EVFTA).

She noted that the two economies are complementary and have a lot of potentials to promote cooperation.

Nicolas Warnery, Ambassador of France to Vietnam, echoed the same sentiments, saying that the two countries have a strong relationship and a long history, and are determined to deepen their ties in all fields, especially the economy. In 2023, France hopes to strengthen cooperation with Vietnam in tourism, culture, arts, science, and all possible fields, especially the economy, the ambassador said.

Warnery added that during the 12th Vietnam-France Decentralized Cooperation Conference, various activities were held to strengthen ties between Vietnam and France.

These activities include the "Walking around France" program and discussion sessions to find solutions for smart cities, cultural heritage, and tourism. The business forum held today is an important highlight of the conference and is expected to contribute to cultural, political, and economic ties between the two countries, the ambassador said.

French Ambassador to Vietnam Nicolas Warnery.

Hanoi bolsters economic partnership with French localities

At the forum, Nguyen Manh Quyen, Deputy Chairman of the Hanoi People's Committee, reported that Hanoi has attracted about $494.4 million in FDI from France since 1989. In 2022, the figure was about $7.8 million and an additional $0.92 million in the first three months of 2023.

Quyen noted that since the establishment of a partnership between Hanoi and the Ile-de-France region in 1989, cooperation between localities in Vietnam and France has been continuously consolidated and developed.

"This form of cooperation has become a model of friendship, tradition, and cooperation between the two countries' localities," he said.

The Vietnam-France Business Forum, part of the 12th Vietnam-France Decentralized Cooperation Conference, is an opportunity to connect city governments and investors as well as businesses from the two countries, Quyen said.

Vice Chairman of Hanoi People's Committee Nguyen Manh Quyen.

On this occasion, Quyen gave an overview of Hanoi's socio-economic situation in the first quarter of 2023. He informed that the city's gross regional domestic product (GRDP) growth increased by 5.8%, which is 1.7 times the national average. All sectors, including services, industry and agriculture, showed growth, while the consumer price index (CPI) remained under control.

Hanoi attracted foreign investment capital of US$1.678 billion in the first quarter, an increase of 283% over the same period last year. In addition, 7,500 new enterprises were established with registered capital of over VND73 trillion ($3.11 billion).

The total retail sales of consumer goods and services increased by 12.6%, higher than the same period last year (9.1%). In addition, the number of tourists visiting Hanoi (with accommodation) exceeded one million, which is 2.2 times higher than in the same period last year. Among them, 712 thousand were international visitors, an increase of 15 times compared to the same period last year.