On May 22nd 2023, the CACCI Presidential delegation proceeded to the Ministry of Industry and Trade (MOIT) of Vietnam where they were welcomed by key Ministry officers led by Mr. Vu Ba Phu, Director General of the Viet Nam Trade Promotion Agency.

In his Welcome Remarks, Mr. Vu informed the delegation that the MOIT is the government ministry in Vietnam responsible for the advancement, promotion, governance, regulation, management and growth of industry and trade. He said that:

(a) On the one hand, the MOIT provides the policy mechanism for the growth and development of Vietnam’s trade and investment. On the other hand, the MOIT provides public services to enterprises, and trade and industrial organizations.

(b) The MOIT has set up a One Centre for International Trade and Promotion which has working relations with more than 100 organizations, attends to bilateral relations with other countries (cultural, economic, etc.), and deals with importers and exporters through its 150 local offices and three overseas offices.

In response, CACCI President Mr. Peter McMullin:

(a) Thanked the Ministry for receiving the CACCI delegation and for making the necessary arrangements for the visit and its warm hospitality, as well as the government of Vietnam for its support of CACCI and its activities through the strong and active cooperation of VCCI.

(b) Introduced CACCI by mentioning that: it was established in 1966 to provide a platform for networking and cooperation among businessmen in the region; CACCI’s membership currently includes 28 national chambers of commerce and industry from 26 independent economies – including VCCI; CACCI has working relationships with other regional and international organizations such as the International Chamber of Commerce, the Eurochambres, the ASEAN Business Advisory Council, the APEC Business Advisory Council, the Pacific Alliance, the Indian Ocean Regional Association, the B20, the World Trade Organization, the SAARC CCI, and the Asian Development Bank, among others; CACCI has consultative status with the United Nations and a member of the Conference of Non-Government Organizations (CoNGO) under the UN umbrella.

(c) Mentioned that Vietnam – through the VCCI – has always played an active role in the Confederation: Since it joined as a CACCI Primary Member in 1990, VCCI has hosted two annual gatherings – the first one in 1993 in Hanoi, and the second one in 2000 in HCMC, and VCCI has also hosted two CACCI Presidential visits before – in 2011 and in 2018.

(d) Expressed his hopes that Vietnam – through VCCI – will remain actively involved in the Confederation, adding that CACCI certainly needs Vietnam’s representation in the group, given the important role that the country’s economy and business sector play in the development of the Asia-Pacific region.

(e) Pointed out that, considering the geographical scope of its membership, CACCI provides a good platform for the Vietnamese business community to reach out into the regional market, and for the Vietnamese government to promote its trade and investment policies for the region.

(f) Extended an invitation for Vietnamese government officials and businessmen to attend the 37th CACCI Conference to be held on 30-31 October 2023 in Cambodia to be hosted by Cambodia Chamber of Commerce.

(g) Expressed his hopes that Vietnam – through the initiative of VCCI and the support of the Vietnamese government – can host another CACCI Conference in the near future, given that the last Conference was held 23 years ago in 2000 in HCMC.

Following Mr. McMullin’s response, Director-General Vu provided the delegation the following salient macroeconomic information about Vietnam to provide CACCI members some basis for deciding how foreign investors can cooperate with the country:

(a) Vietnam is a typical example of a WTO member in terms of how it benefited from its membership in the organization. Among others, since its admission into the WTO, Vietnam’s GDP grew four times; it is one of the 22 countries with the biggest trade revenue in the world in terms of both volume and value;

(b) FDIs have played a major role in the country’s growth; FDIs account for 70-75% of the country’s total revenue, with Japanese investment expected to continue growing in the next five years;

(c) Vietnam is considered the workshop of the world beside China, especially in electronics and textiles and apparels;

(d) The country enjoys the advantage of having 18 free trade agreements with many countries (CPTPP, IFAP), and has recently concluded FTA negotiations with Israel and the UAE.

(e) Vietnam has a young population, with 65% of its people under 45 years of age;

(f) The country’s infrastructure has continued to be upgraded over the past 10 years;

(g) Vietnam has great connectivity with neighboring countries in the north, and demonstrates great dynamism with neighboring countries in the south; The Mekong Delta River has improved and enhanced connectivity with neighboring countries both in the north and the south;

(h) Agricultural and fishery products are major exports (including forestry, aquaculture, rice, coffee, cashew nuts), and Vietnam is one of the top five exporters in the world in wooden furniture;

(i) The country targets FDIs in processing and in-depth processing products (e.g. vegetables and fruits)

(j) The country’s industrial sector is focused on producing for exports and on developing the foundation industries (e.g., chemicals, mechanical equipment)

(k) Vietnam is among the strongest in the world in textiles (weaving and dyeing using new technology), leatherware, and construction materials;

(l) E-commerce and digital economy is expected to post a 25-27% growth rate annually over the next five years;

(m) Vietnam is ranked top three in Asia in terms of the number of companies using digital application, and is expected to become the hub for AI and digital transformation of the APEC region;

(n) It is considered one of the top counties in terms of Internet and smartphone users

(o) With a population of 100 million, Vietnam has the potential to have a strong retail and service sectors;

(p) Vietnam encourages 100% FDI instead of through joint ventures or through M&A via securities markets;

(q) Vietnam’s Investment and Corporate Law covers both local and foreign companies (and does not discriminate between the two)

At the end of the meeting, President McMullin and Director-General Vu exchanged tokens of appreciation for the opportunity to share information and views on trade and investment opportunities between Vietnam and CACCI member countries.

The complete report of the CACCI Presidential Visit to Vietnam can be read HERE.