VINACHEM

(VEN) - Trade between Vietnam and France increased over the past two years to reach 1.744 billion euro in 2009 and almost 2 billion euro in 2010, of the latter, Vietnamese exports accounted for 1.32 billion euro (a nine percent increase on 2009). A number of major Vietnamese exports to France increased considerably compared to 2009. They included footwear exports that grew 17 percent, textile/garment exports that soared 4.5 percent, home appliance exports that improved more than 10 percent, and seafood exports that increased 34.24 percent.

The French economy is expected to continue recovering in 2011, while French consumer purchasing power has improved. This is an ideal opportunity for Vietnamese businesses to exploit. Vietnamese businesses should continue improving their product competitiveness so they can enlarge their niche in France.

France was one of the first foreign investors in Vietnam. Vinaspecia and Roussel Vietnam pharmaceutical joint venture enterprises were established in 1978 using two old French enterprises that operated in southern Vietnam before 1975.

Since Vietnam first opened its doors for foreign investors, many more French businesses including banks have come to Vietnam looking for investment opportunities. They included BFCE, BNP, Societe Generale, Indosuez and Credit Lyonnais banks, Rhone Poulenc and Sanofi chemical and pharmaceutical industry groups, Renault and Peugeot car manufacturers, Spie Batignolle and Bourgues construction businesses, and more. For many years, France has ranked first among EU investors in Vietnam. There are about 300 French businesses with a total capital of about US$3 billion in Vietnam. With investment that is mainly focused through companies, joint ventures and representative offices, France ranks 15th among 93 countries and territories investing in Vietnam. French businesses in Vietnam have provided jobs for about 26,000 people.

CEE chairman Jean Michel Caldagues said that the CEE Vietnam division includes 25 French entrepreneurs operating in almost all economic fields in Vietnam, and that leading groups and small to medium-sized businesses including those operating in industry, service and fertilizer sectors are always willing to assist French entrepreneurs that want to invest in Vietnam to do business in the country. Jean Michel Caldagues said that French businesses are highly interested in infrastructure development and highly rate the public-private partnership (PPP) model that is being promoted in Vietnam. Stimulating development of infrastructure to cater for economic development is necessary in a country that experiences a high growth like Vietnam. While the Government's resources are limited, PPP development is one of the best ways to mobilize resources for development. France is one of countries with a wealth of experience in PPP development and it is willing to share its experience in this field with Vietnam.

UBIFRANCE director for Vietnam Jean Louis Poli said that French businesses are interested in the Vietnamese investment environment. Apart from expressing his belief in a fast growth in Franco-Vietnamese multifaceted cooperation because Vietnam is a rapidly-growing and attractive country, Jean Louis Poli emphasized that it was time for French businesses to expand business/investment in Vietnam./.