Bilateral Economic Cooperation
Vietnam is an important and traditional trade partner for Hungary in the South-East Asian Region. According to the trade figures of the Hungarian Central Statistical Office, Vietnam ranked 53. among the top trading partners for Hungary in 2016 (59. in 2015), with a share of 0,1 % in her overal trade volume (0,07% in 2015).
Bilateral trade reached a growth of 40 % in 2016 amounting to 200 M USD compared to the preceeding year. Within this, Hungarian exports grew 13%, while imports grew 64 %, with the volume of 76 M USD and 124 M USD respectively. The balance of trade showed 48 M USD surplus in favour of Vietnam.
The top 3 commodities in Hungarian exports to Vietnam in 2016 were medicine and other pharmaceutical products, public transport vehicles and different processed goods, while the top 3 import commodities from Vietnam were electronic equipment, electrical machineries, devices and instruments, and public transport vehicles.
According to the latest statistics, Hungarian exports to Vietnam grew 30 %, while the imports from Vietnam grew 128,7 % in the first two months of 2017 on y.o.y basis, amounting to 10,1 M USD and 37,8 M USD respectively. Total trade during that period reached 47,9 M USD, an increase of 97 % on y.o.y basis resulting in a 27,6 M USD trade surplus for Vietnam.
The presence of the Hungarian National Trading House (HNTH) in Vietnam plays an important role in export promotion. At present there are two offices having been opened by the HNTH since June, 2014, both of them are in Ho Chi Minh City, the hub of Vietnamese businesses.
Promising areas in developing bilateral trade relations are: agro-food products and technologies, water management, pharmaceutical products, medical devices, ICT, environment protection, renewable energy, different machineries and equipment.
Bilateral investment relations are far behind the desired level. It could be developed by strenghtening cooperation between the SMEs through establishing joint ventures and transfering modern technologies. Vietnamese companies are also welcome in Hungary as a hub for their EU businesses enjoying the benefits of the favourable Hungarian investment climate and excellent geographical location.
Hungary is committed to develeop bilateral economic cooperation, which is supported by offering a 500 M EUR consessional financial facilty (ODA) for Vietnam to implement projects in the fields of health care, ICT, education, agriculture and water management. Based on previous ODA agreements Hungary has already implemented succesfully a water treatment project in Quang Binh province and an ICT project in Hai Phong.
The established framework of bilateral treaties and agreements provides the necessary conditions for developing economic cooperation. Based on the Economic Cooperation Agreement concluded in 2004, the recent meeting of the Joint Committee on Economic Cooperation was held in March, 2017 in Budapest.
Paralel with the inter-governmental relations, institutional relations and cooperation between the professional associations and business organizations are developing fast as well.