New signs of growing trade-investment ties with UK

July 31, 2015 | 15:57

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With planeload of business men and women, UK PM David Cameron’s visit to Viet Nam is indicative of growing ties, particularly in trade and investment fields.

UK PM David Cameron visits the Ho Chi Minh Stock Exchange.

David Cameron is the first serving British PM to visit Viet Nam at a time the Southeast Asian country is now expanding international integration with economic front as a core.

Pursuing the foreign policy of independence, self-reliance, diversification and multi-lateralization of external relations and engaging in a wide range of free trade agreements talks, including the Trans-Pacific Partnership and Viet Nam-EU free trade agreement, it is clearly that Viet Nam is emerging as an attractive investment venue for foreign investors.

The active participation in a new generation of free trade agreement is evident of “showing real willingness”, noted British PM Cameron in his interview ahead of his landmark visit to Viet Nam.

Currently, as many as 101 nations and territories have poured US$260 billion in 18,220 projects in Viet Nam.

In addition, with a young, tech-savvy population and the fastest growing middle class in South East Asia, Mr. Cameron said he believes that British businesses have much to offer.

The attractiveness of the Vietnamese market and growing trading relationship between the two countries coupled with Britain’s determination to reduce its dependence on trade with Europe seem to add more ingredients to the overall strategic partnership which was established in 2010.

During his stay in Viet Nam, Mr. Cameron held talks with PM Nguyen Tan Dung, met with Party leader Nguyen Phu Trong and State President Truong Tan Sang. He also visited the stock exchange in Ho Chi Minh City where he was accompanied by 30 British firms.

The two PMs affirmed that economic cooperation would continue to be a priority for both sides, welcoming the progress in negotiations on the Viet Nam-EU free trade agreement while underlining their shared vision of an ambitious and comprehensive agreement which would fully address both tariff and market access issues.

Both leaders were pleased to have witnessed the signing of an agreement between Rolls-Royce and Viet Nam Airlines, worth 340 million GBP.

The two PMs welcomed the UK offer to Viet Nam of up to 500 million GBP in export credits to fund future infrastructure projects that could benefit from British expertise. UK Export Finance and the Ministry of Finance will now work together to identify suitable projects that may be eligible for this offer.

Both PMs welcomed witnessing the investment of 100 million GBP by Prudential Viet Nam in the Ministry of Finance’s first issue of 20-year government bonds and the acceptance by Ba Ria Vung Tau province of ZincOx’s proposal to invest 75 million GBP into recycling hazardous waste and reducing carbon emissions from the steel industry, a first for a UK company in Viet Nam.

Both PMs welcomed the announcement by Harvey Nash, the largest foreign investor in the Vietnamese technology sector, that it would launch a UK-Viet Nam tech hub this year to facilitate dialogue and potential collaboration between Vietnamese and British companies, with strong political support from the UK government.

Both PMs further welcomed the leadership shown by the Viet Nam Chamber of Commerce and Industry and the Viet Nam Business Forum in taking forward the Business Integrity agenda and supported future business-led action.

VN, UK issue joint statement

Viet Nam and the UK issued a joint statement following the talks between PM Nguyen Tan Dung and the visiting UK Prime Minister David Cameron in Ha Noi on July 29. Following is the full text of the joint statement:

UK PM Cameron looks to strong ties with Vietnam

UK Government expects to strengthen cooperation with Viet Nam, affirmed PM David Cameron during his talks with his Vietnamese counterpart Nguyen Tan Dung in Ha Noi on July 29.

Prudential Vietnam to acquire half of 20-year sovereign bonds

Life insurance giant Prudential Vietnam yesterday officially sealed a deal with the Ministry of Finance (MoF) for a VND3.2 trillion (GBP 100 million) long-term investment of 20-year government bonds (G-Bond) in the presence of the UK’s Prime Ministers David Cameron and his Vietnamese colleague Nguyen Tan Dung.