Sri Lanka and Vietnam discuss trade and investment opportunities
An interactive evening with the Vietnamese Ambassador in Sri Lanka, Pham Thi Bich Ngoc, organized by the Sri Lanka – Greater Mekong Business Council was recently held at the Ceylon Chamber of Commerce (CCC).
Ngoc has reportedly said at the discussion that Sri Lanka and Vietnam have been good friends for 50 years, since the establishment of diplomatic relations in 1970 and that the time-honored friendship and cooperation between the two countries have deepened and broadened in many areas including politics, economy, education, agriculture, tourism, technology, culture and more.
She has further said that an abundance of natural resources, stable inflation, favourable investment incentives and government’s subsidies, competitive labour cost, strong and stable economic growth, rise of middle class and disposable income are the key factors influencing investments in Vietnam.
According to reports, two publications with information on doing business with Vietnam was handed over to the Council by Ambassador Ngoc and publications are available with the CCC for reference.
Tran Tuan Dung, Minister Counselor/Deputy Chief of Mission has further explained the benefits of investing in Vietnam.
He has noted that the country has stable politics, stable economic growth, and has competitive production costs and that it has an import tax exemption for machinery, and several other materials.
As of January 2020, Sri Lanka has 23 projects with a total registered capital of US$ 41.72 million and 14 of these have a total capital of US$ 76.7 million, mainly in the field of textiles, local media reports stated.
The Deputy Chief of Mission has pointed out potential sectors for investors – healthcare and the pharmacy sector, biotechnology, renewable energy, real estate, and more.
Meanwhile, Somasena Mahadiulwewa has explained the role of the Department of Commerce while Srimali Jayaratne has discussed the bilateral investment relations between Sri Lanka and Vietnam.
“The total Sri Lanka related investment in Vietnam stands at US$ 76.27 ml with 14 projects/companies, mostly in the apparels and textiles sector. However, the Vietnamese investment to Sri Lanka stands at a very minimum level. Only two projects have been identified in the hotel and construction sector. There are multiple investment opportunities available in Sri Lanka for Vietnamese Business in the sectors of, high-tech manufacturing, IT enabling services, tourism and leisure, food processing, logistics, and education,” she has been quoted as saying at the discussion.
Sri Lanka and Vietnam enjoy strong bilateral and trade ties. The investment opportunities showcased by the Vietnamese ambassador to Sri Lanka on business/investment opportunities in Vietnam is indicative of the close ties between the two countries as well as the strong private sector in the country. Sri Lankan businesses looking at expanding operations could look at business/investment opportunities in Vietnam and vice versa. Also, foreign businesses interested in doing business with Vietnam could look at setting up base in Sri Lanka to engage with Vietnam.
|Article Code :||VBS/AT/20200310/Z_5|