Swiss Vice President Ignazio Cassis is set to begin a three-day visit to Vietnam.
The trip to Vietnam seeks to strengthen economic ties and share innovative technologies for sustainable and environmentally friendly development.
Economic cooperation between Switzerland and Vietnam will be the top priority. Due to the large presence of Swiss business interests in Vietnam, Mr. Cassis is expected to launch a cooperation strategy in line with the Swiss State Secretariat for Economic Affairs’ 2021-2024 plans. The plan will provide $70 million of development grants to Vietnam, particularly supporting its manufacturing sector, which experienced double digit growth in the past decade. Vice President Cassis is also expected to amplify negotiations on a free trade agreement between the European Free Trade Association and Vietnam, aimed at expanding the $3.65 billion trade volume between the two nations.
In the medium-term, expect strengthened Swiss-Vietnamese and EU-Vietnamese economic cooperation to expand foreign investments in the country, prompting neighboring Thailand and Malaysia to enhance their relationship with Switzerland. These investments present an opportunity for Vietnam to boost its production value in global value chains, enabling Hanoi to capture some manufacturing activity from China in the long-term, despite China’s advantages in market size and industrial development.
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Sili is a research analyst with the Current Developments team. With a background in European political economy, Sili focuses on EU policy, integration, and development within Central and Eastern Europe.