Vietnam and Luxembourg Establish Strategic Partnership to Promote Green Finance

The Vietnamese and Luxembourg Ministries of Finance have reached an agreement to create a strategic partnership focused on green finance.

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At the signing ceremony. Photo: tapchitaichinh.vn

Vietnamese Prime Minister Pham Minh Chinh and his Luxembourg counterpart Xavier Bettel, who were in Hanoi for an official visit to Vietnam from May 3-5, witnessed the signing of a Memorandum of Understanding (MoU) in Hanoi on May 4, as VOV reported. This MoU further strengthens the two nations’ relationship and deepens the ties between them.

Both Chinh and Bettel hailed the establishment of the strategic partnership on green finance, which they said is a new pillar of cooperation that contributes to deepening the Vietnam-Luxembourg relations.

During their talks in Hanoi the same day, the Prime Ministers agreed that Vietnam and Luxembourg would work closely to effectively implement existing cooperation mechanisms and initiate new, suitable mechanisms that are in line with their potential and needs of cooperation and development.

Vietnam, Luxembourg Establish Strategic Partnership on Green Finance
Vietnamese Prime Minister Pham Minh Chinh (R) and his Luxembourg counterpart Xavier Bettel. Photo: VGP

They agreed to fully and effectively implement the EU-Vietnam Free Trade Agreement (EVFTA) and promote the construction of logistics centers and bonded warehouse systems in both countries.

The two sides also consented to bolster cooperation in a variety of other domains, such as culture, science and technology, information and communications technology, people-to-people exchanges, tourism, and climate change response.

Strengthening Trade and Investment Partnerships

As the global economy continues to evolve, international trade and investment partnerships are becoming increasingly important to business success. From small businesses to multinational corporations, the ability to leverage foreign partnerships has become a key factor in achieving competitive advantage. The need to strengthen these partnerships has never been greater.

To that end, governments all over the world are crafting policies and initiatives to support and promote trade and investment. Such measures include improving the ease of doing business and reducing barriers to trade, such as taxes and tariffs. Additionally, governments are offering incentives for foreign investors, such as tax breaks and financial assistance, to encourage investment in their countries.

At the same time, countries are working to ensure that their trading partners abide by international standards. This includes ensuring that companies comply with labor laws, environmental regulations, and intellectual property rights. By taking such measures, countries are protecting their citizens from exploitation and ensuring fair and equitable trade.

Overall, the goal is to create an environment where businesses of all sizes can engage in mutually beneficial trade and investment partnerships. By doing so, businesses can access new markets, increase their profitability, and create jobs. Ultimately, this will lead to a more prosperous future for all.

Vietnam and Luxembourg have tremendous potential to collaborate in multiple fields, particularly in finance, logistics, and sustainable development to combat climate change, delegates at the Vietnam-Luxembourg Business Forum in Ho Chi Minh City heard on May 5, according to VietnamPlus.

In his remarks, Prime Minister Bettel underlined that Vietnam is an important partner of Luxembourg in many aspects, and that his country is investing great resources to promote their partnership. He also emphasized the importance of strengthening economic and cultural ties between the two countries.

Meanwhile, Luxembourg is an important partner and a gateway for Vietnam to the EU, he said.

Vietnamese Minister of Industry and Trade, Nguyen Hong Dien, has stated that Vietnam is the eighth largest trade partner of Luxembourg outside of the European Union (EU). Additionally, Luxembourg is Vietnam’s third largest investor from the EU.

Luxembourg Prime Minister Xavier Bettel (standing, second from left) and delegates witness the signing of a memorandum of understanding between the VCCI and the Luxembourg Chamber of Commerce (Photo: VNA)
Luxembourg Prime Minister Xavier Bettel (standing, second from left) and delegates witness the signing of a memorandum of understanding between the VCCI and the Luxembourg Chamber of Commerce. Photo: VNA

Two-way trade between Vietnam and Luxembourg has tripled over the last five years. In the first three months of 2020, the figure increased by 8.2% year on year—even in the face of the global economic downturn. It is essential for the two countries to collaborate more closely, particularly in the areas of trade and investment, in order to bolster the resilience of each economy in the face of the difficulties and challenges ahead.

The two sides also boast a high potential for bolstering their trade ties, as the export product structures of the two countries can complement each other – a condition that is ideal for businesses of the two countries to develop and strengthen their partnership, particularly for the trading of products that fulfill each other’s needs and demands, the minister stated.

At the forum, the Vietnam Chamber of Commerce and Industry (VCCI) and the Luxembourg Chamber of Commerce signed a Memorandum of Understanding (MOU) to pave the way for furthering economic, trade, and investment relations between the two countries. This MOU will open up new opportunities for Vietnamese and Luxembourgish businesses in the near future.

Rosy Huong