How strong is the Vietnamese-Austrian economic relation?
On 1 December 2022, the two countries will celebrate their 50 years of diplomatic relations.
In terms of investment relations, Austria has around 37 projects with a total investment capital of about 150 million USD, focusing mainly in the fields of manufacturing and processing industry and science and technology. In terms of trade relations, Austria has always been one of the important export markets of Vietnam and is currently in the group of 5 largest export markets of Vietnam in the EU. Bilateral trade turnover in 2020 reached 3.2 billion USD, 13 times higher than in 2010 and this is an impressive number in the context of the COVID-19 epidemic.
The Memorandum of Understanding between the Ministry of Industry and Trade of Vietnam and the Austrian Minister of Economy and Digital on cooperation in the field of Industry 4.0 and e-commerce, signed in the witness of the two Prime Ministers is an important foundation for the two sides to implement cooperation activities in the coming time.
Since the EVFTA took effect, the import and export turnover between Vietnam and Austria has increased. Vietnam is now the largest trade partner of Austria in Southeast Asia, with imports from the latter amounting to nearly 1 billion EUR. Austria is carrying out internal procedures to soon ratify the Investment Protection Agreement between Vietnam and the EU (EVIPA)
With a population almost 100 million people and rapidly growing, Vietnam is a potential market for Austrian businesses to promote their products and expand their business. Moreover, Vietnam is also a gateway for Austrian products and services to access the ASEAN market of 670 million people. With the advantage of being considered by many investors as an alternative to China as an investment location, Vietnam has developed suitable preferential policies to attract foreign investment.
In the most recent visit of the Vietnam Government to Austria last week, the two sides reaffirmed their desire to cooperate in vocational and labor training, especially in the fields of information technology and nursing – two areas where Austria has great demand for qualified workers in the future.
The two sides agreed to encourage relevant agencies to soon launch a pilot project on the implementation of the Austrian vocational training model in Vietnam. According to this model, the program will be built in the direction of spending 20% of the time studying at the training institution, the remaining 80% of the time will be spent for trainees to practice combining practical work at enterprises and other employers
Who are the pillars of Vietnam expat community in Austria?
Former Vietnamese Ambassador to Austria Le Dung
Vietnamese Ambassador to Austria Nguyen Trung Kien
Ho Xuan Thai – the most successful businessman in Austria – owner of DOTS, a restaurants/events management company
Which companies are the big players in the Vietnamese-Austrian relations?
Austria printed circuit board manufacturer AT&S has been studying several locations in Vietnam to build two factories worth €1.5 billion ($1.78 billion).
Cable car manufacturer Doppelmayr provided 25 cable cars to Vietnamese tourism industry, includes the world-record 215 meters high cable car pillar.
Fire-fighting equipment manufacturer Rosenbauer has been delivering to the country for 30 years.
Engel is a company that provides injection-molding solutions for the electronics sector. Engel has a sales and service branch in Ho Chi Minh City.
Notable start-ups include: Andritz, AVL List or Vamed
Which roles do the big cities like Hanoi, Ho-Chi-Minh-City or Haiphong play?
The Trade Office of the Austrian Embassy made its debut in Ho Chi Minh City on 16 May 2019 with the aim to connect business communities of Vietnam and Austria. The Trade Office is named IC- Steiermark Centre (ICS). The ICS’s adding Vietnam into its 2021 focus program could open up a series of events such as seminars and trips between two countries in the near future. The Austrian Embassy is located in Hanoi – the political center of Vietnam. Hai Phong is a port city where the majority of northern produce is exported from there to Europe.
Please do not hesitate to contact the author Dr. Oliver Massmann under email@example.com. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC, Member to the Supervisory Board of PetroVietnam Insurance JSC and the only foreign lawyer presenting in Vietnamese language to members of the NATIONAL ASSEMBLY OF VIETNAM.