Ministry of Industry and Trade of the Czech Republ : Minister Kuba supports Czech companies in Vietnam, the priority country within the framework of the Czech export strategy

Published: 23.1.2013

Author: Veronika Forejtová, press spokeswoman [e-mail]

It has managed to fulfill main objective aimed at promoting Czech companies in their efforts to obtain new contracts for 20 Billion crowns.

Minister Kuba supports Czech companies in Vietnam, the priority country within the framework of the Czech export stratégy,

THE MINISTER OF INDUSTRY AND TRADE, MR MARTIN KUBA GAVE UNEQUIVOCAL SUPPORT TO CZECH COMPANIES DURING HIS TWO-DAY WORKING VISIT TO VIETNAM. THIS COUNTRY BELONGS AMONG 12 EXPORT PRIORITIES FOR CZECH COMPANIES. IT HAS MANAGED TO FULFILL MAIN OBJECTIVE AIMED AT PROMOTIN CZECH COMPANIES IN THEIR EFFORTS TO OBTAIN NEW CONTRACTS FOR 20 BILLION CROWNS.

When visiting Vietnam, Mr Kuba was accompanied by a numerous mission of the Confederation of Industry of the Czech Republic, including companies operating in the energy sector (conventional and nuclear), transportation infrastructure (public transport, aerospace, navigation and radar systems), mining and manufacturing industry, agro-food complex and financial services sector.

During his first meeting with the Vietnamese Minister of Natural Resources and Environment, Nguyen Minh Quang Minister Kuba said that the Czech Republic wanted to promote in Vietnam mainly the implementation of projects, which would be beneficial for both countries. "The needs of the Vietnamese economy in this area perfectly match capabilities and competence of Czech companies, which excel in the field," stressed the Minister in accordance with his Vietnamese counterpart.

"We have a great mineral wealth. We expect that the Czech Republic will help us understand and make use of the wealth in our economy," said the Vietnamese Minister of Natural Resources and Environment.

Both countries will also make better use of the synergies resulting from projects of the international development cooperation provided by the Czech Republic to Vietnam in the past years. The Minister Quang highlighted the case of a successful geological survey conducted by the GET Czech company, which resulted in the discovery of unique deposits of glass sands of an exceptional quality. Currently, the project continues in searching for other raw materials, necessary for the production of glass batch. The Vietnamese side expects the Czech investment - in practice the construction of the glassworks. In addition to glass sands, the cooperation in the exploration of uranium ore, which is the Vietnamese priority raw material with regard to the preparation of the construction of nuclear power plants, will continue also in the future. The priorities of the Vietnamese government also include a preparation of the use of extensive coal reserves in the Red River Delta. A consortium of companies in cooperation with the Technical University of Ostrava on the Czech side is involved in this project. Vietnam, as a country, which necessarily needs to use more of its vast mineral wealth for its further development, offers far more opportunities in the mining industry. Therefore both the Ministers agreed that the interconnecting of companies of the both countries will be facilitated by means of a new training program for Vietnamese experts in the field of geological research and mining.

When opening the Czech-Vietnamese business forum, which was greatly welcomed by the representatives of local businesses, Mr Kuba did not hide the need for increasing the intensity of mutual contacts. "Our mutual trade exchange, even though reasonably growing in the recent years, still does not match the real possibilities, potential and the fact that the two economies are complementary," said the Minister. "We are here to do something about it. I brought entrepreneurs, whose qualities are guaranteed" addressed Mr Kuba the Forum participants after signed a memorandum of cooperation in the field of technology and innovation between the Technology Agency of the Czech Republic and the State Agency for Technology and Innovation of Vietnam.

The President of the Confederation of Industry of the Czech Republic, Mr Jaroslav Hanák followed up in the similar vein, when saying that despite a strong competitive environment the Vietnam is very good business partner also for Czech companies. "The Czech Republic and its companies have a lot to offer their Vietnamese counterparts; whether in terms of upgrading the industry, building infrastructure or supplying medical equipment and new technologies."

The Minister Kuba discussed with the Vietnamese Minister Vu Huy Hoang key business plans of Czech companies in Vietnam and the steps, which the governments of both countries are prepared to do in order to promote the cooperation at the corporate level. Mr Kuba was after agreeing with his counterpart a periodic evaluation of joint activities and their measurement in terms of benefits to both economies. The nearest test in this direction will be the meeting of the Czech-Vietnamese Joint Committee for Economic Cooperation to be held in June in Hanoi as well as the follow-up ministerial meeting in Prague in the autumn this year. The Minister highlighted his commitment to keep the rhythm and meet the intentions resulting from the export strategy.

The Minister Kuba conveyed the readiness of Czech companies to invest and participate in joint projects with Vietnamese side during the meeting with the Vietnamese Deputy Prime Minister Hoang Trung Hai. "On behalf of the Czech government, I can say that we continue to pursue the goal of a further deepening of economic cooperation with Vietnam. I firmly believe that the best we can offer, in addition to expertise and experience, is a competitive financing through the Czech Export Bank and the Export Guarantee and Insurance Company working closely with private banks operating in the Czech Republic" concluded Kuba the negotiations in the Vietnamese Government Office.

"We appreciate that the Czech Republic ranked Vietnam among the priority countries of economic interest," said the Deputy Minister Hai.

The Tuesday´s schedule of the Minister Kuba included the meeting with the Deputy Minister of National Defence of Vietnam, Truong Quang Khanh to discuss topical issues of bilateral cooperation in the military-industrial areas, the participation of Czech companies in modernizing the Vietnamese army and possibilities of education of their members in the Czech Republic.

Both delegations discussed possibilities of cooperation in the field of investments also at the Vietnamese Ministry of Planning and Investment at the level of the Deputy Ministers Milan Hovorka and his counterpart, Cao Viet Sinh. Vietnam is undergoing fundamental changes, whose integral part is the necessity of making attractive conditions for foreign investors, simplifying the business environment for entrepreneurs and partnerships between the public and private sector in the implementation of large projects.

Minister Kuba positively evaluated results of his negotiations in Vietnam. "Having an opportunity to speak with key members of the Vietnamese government, who are accountable for the economy, means to me a clear signal, confirming the interest in developing economic cooperation with the Czech Republic. I am pleased that the discussions helped to Czech companies in their efforts for obtaining new contracts worth approximately 15 to 20 billion crowns. It is my rather conservative estimate of what we discussed" said he.

According to the Minister Kuba, an equally important thing was a possibility to discuss with our partners some of the challenges faced up by Czech companies in accessing the Vietnamese market and developing business activities. "The door is open. I gained assurance from my colleagues that they would deal with these issues to find solutions acceptable to the parties concerned. I also emphasized the openness of our economy and interest in the removal of barriers to mutual trade and investments, while highlighting the need of early negotiating a free trade agreement between the EU and Vietnam" added the Minister.

After a successful working visit to Vietnam, the business delegation headed by the Minister Kuba moved to Thailand, where it has scheduled series of meetings with the country and business leaders. The journey around the Southeast Asia to support the Czech exports and investments will be completed by the Czech Minister and representatives of companies in Myanmar.