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BUSINESS REPORT

is concentrated in industry, with major players and provides tariff reductions and even exemp- “Nestlé Vietnam has prioritized customer
including Nestlé (food and beverages), Novartis tions on exports to the EU, to the benefit of service over costs incurred, and with a huge
/ Ciba - Sandoz (pharmaceuticals), Roche Nestlé and its affiliates. But every coin has effort in coordinating with our regional and
(pharmaceuticals), Holcim (cement), ABB two sides. “European markets also have high global experts, fulfilled all of its export oppor-
(electrical equipment and transformer station requirements regarding quality and respon- tunities,” he said.
construction), Sulzer (mechanical and elec- sible sourcing, as well as the residual content
trical equipment), SGS (inspections), Escatec of pesticides and herbicides,” he said. Moving forward
(electronic equipment), Ringier (printing), Given it’s in the food and beverage (F&B) Mr. Thuong pointed out that in order to
André / CIE (commercial), and Zuellig Pharma industry, Nestlé continues to see that consumer improve the investment environment to attract
(pharmaceuticals and medical equipment). confidence lies largely in products of high FDI from Swiss enterprises in particular and
The Vietnamese Embassy in Switzerland quality that are good for the health. “During elsewhere in general, it is necessary for Viet-
held a ceremony in late February to launch the pandemic, we saw that the health of senior nam to thoroughly consider certain solutions.
the non-profit Switzerland-Vietnam Business citizens and children were prioritized, with The first is to continue to improve its business
Gateway (SVBG), which aims to promote people seeking nutritious products,” he added. environment, promote administrative reform,
exchange and investment and trade cooper- “We are committed to ensuring the continued and improve the quality of human resources
ation between enterprises in the two countries. production and delivery of our F&B products and technologies. These are factors that Viet-
Ms. Nguyen Thi Thuc, President and Founder to Vietnamese consumers, and continue to nam needs to continue to improve in order
of SVBG, told VET that it will provide Swiss work closely with our supply chain, distribu- to attract better quality capital flows in high
enterprises with first-hand information on tion, and retail partners.” technology, clean energy, renewable energy,
trade and investment opportunities in Vietnam For Roche, meanwhile, Vietnam’s rapid high-quality services, and banking and finance.
and connect them with local authorities and economic development has led to higher And these are also fields where Switzerland
potential partners and customers. Moreover, demand for specialized healthcare services, possesses advantages.
it will guide and accompany Swiss enterprises especially among the country’s growing middle The second is reviewing policies on FDI
after they arrive in Vietnam. Foreign-invested class. “The Covid-19 outbreak has proven attraction, adopting specific measures to
enterprises (FIEs), including those from that health is, and will certainly continue to screen investment, promoting the develop-
Switzerland, not only bring products to Viet- be, a priority for most Vietnamese,” Dr. Qadeer ment of supporting industries, and building
nam but also experience, operational know- Raza, General Manager of Roche Vietnam, links between domestic enterprises and their
how, production methods, and technologies. told VET. “Roche is committed to contributing foreign counterparts.
Ms. Thuc also pointed out that, in recent to the well-being of Vietnamese people Third, it is necessary to improve institutions
times, the healthcare and pharmaceutical field through innovative therapies and diagnostics and policies on foreign investment to attract
has become a strength of Swiss enterprises in solutions that improve quality of life.” investors, approach advanced standards, meet
Vietnam because of the pandemic and a greater There are also challenges facing Swiss busi- international commitments, ensure consis-
focus among consumers on health. Biotech- nesses, however. According to Swiss experts tency, openness, transparency, and competi-
nology is also an area where Switzerland holds on foreign investment, few hi-tech projects tiveness, focus on building institutions, intro-
strengths when investing in Vietnam, as is have come from Switzerland to Vietnam duce preferential policies, and create the busi-
renewable energy. Banking and insurance because of the low level of skills among workers ness conditions necessary to attract major
remains weak, as little Swiss investment has in the latter. “Cooperation between Vietnam projects and those using high-technology.
come to date. Switzerland has very good tech- and Switzerland in hi-tech fields is limited,” On top of those is strengthening investment
nology and standards in agriculture and food Mr. Thuong agreed. “The lack of supporting promotions with large, reputable investors
processing, while supporting industries, infra- industries in Vietnam is a negative for Swiss possessing technological and financial capacity,
structure, and merger and acquisitions (M&As) enterprises when it comes to investing in the publicizing the advantages from FTAs Vietnam
hold less potential than other industries. manufacturing and processing industry.” has signed, reviewing the Law on Intellectual
Mr. Thuong said a number of Swiss enter- Last year was challenging for businesses Property to ensure it aligns with commitments
prises hope to cooperate with Vietnam in all around world, as Nestlé noted. “The pan- in FTAs, especially new-generation FTAs,
developing renewable energy, especially wind demic meant that every company had to adjust ensuring the full implementation of all com-
power technology in small-scale power gen- their business strategies and production plans,” mitments to create confidence among
eration stations. “As new technology is yet to Mr. Mackereth said. For example, global mar- investors, and supporting the local private
be applied in Vietnam, the two sides are itime transport and container availability have sector, especially small and medium-sized
simply exchanging information and are yet been significantly disrupted by changing trade enterprises (SMEs) that have greater com-
to implement any projects,” he explained. dynamics due to Covid-19. Freight costs have petitiveness and access to international mar-
increased enormously, often by four- or five- kets, thereby promoting cooperation with
Opportunities & obstacles fold and sometimes by as much as ten-fold. SMEs from Switzerland and elsewhere. %
Vietnam’s links with economies overseas
have been bolstered in recent times by the
signing of free trade agreements (FTAs) such SWISS INVESTMENT IN VIETNAM
as the EU-Vietnam FTA (EUVFTA) and the Switzerland
Comprehensive and Progressive Agreement 2015 2020
for Trans-Pacific Partnership (CPTPP). Projects 110 172
According to Mr. Mackereth, the EUVFTA, Total registered capital $1.99 billion $2.05 billion Vietnam
which came into force in August last year,
offers Nestlé Vietnam further opportunities Ranking 19th out of 139
to expand its business in Europe with value- globally; 6th in
Europe
added processed coffee products. He noted
that the agreement facilitates trade overall Source: Ministry of Planning and Investment (MPI)

APRIL 2021 | VIETNAM ECONOMIC TIMES | 27