Foreign Minister Alexander Schallenberg (ÖVP) campaigned in Vietnam for economic opportunities for Austrian companies and support for the European position in the war in Ukraine. Given the current uncertain times, “we need to look for new, reliable partnerships,” Schallenberg said during a meeting with his counterpart Bui Thanh Son in Hanoi on Monday. Relations with Vietnam are already “at an all-time high,” Schallenberg said. With a population of 100 million, Vietnam is considered the growth engine of Southeast Asia.
Austria and Vietnam have a common interest in a world in which treaties and the territorial integrity and sovereignty of states are respected, Schallenberg said at the start of the delegation meeting at the guesthouse of the Vietnamese foreign ministry.
‘Vietnam is actively challenged by Chian’
In the run-up to the meeting, he had assigned the communist country a key role in the conflict zone of Southeast Asia. Vietnam traditionally enjoys good relations with Russia, but at the same time is “actively challenged” by its closest ally China. In the territorial disputes with China, Vietnam insists on compliance with international law, just as the European states do in the case of the Russian aggression against Ukraine. Vietnam has always abstained from voting on UN resolutions against the aggressor.
Host Bui welcomed the fact that Schallenberg was accompanied by a business delegation. Austria is already one of the top ten Vietnamese export markets in Europe. “I am convinced that this visit will play an important role in further deepening the excellent relationship,” said Bui.
Land orders from RBI and Andritz Hydro
Over lunch (local time), Schallenberg joined the Austrian entrepreneurs led by WKO Vice-President Philipp Gady in a forum for infrastructure and technology cooperation, which mainly dealt with government investment orders. Top companies such as Kapsch, Rosenberger and Vamed were represented. Two others – Andritz Hydro and Raiffeisen Bank International – have won concrete orders. RBI signed a MoU with the Agrimeko company to finance a hydroelectric power plant in the amount of 25 to 30 million euros, and Andritz Hydro agreed on a project for the expansion of pumping and storage power plants with a subsidiary of the Vietnamese state energy group EVN .
Interest in Austrian know-how in the field of mechanical engineering
Leading up to the trip, the Vietnamese side had expressed an interest in Austrian know-how in mechanical engineering. At the conference, leading Vietnamese representatives announced the need for infrastructure solutions for the fast-growing cities to curb traffic chaos and reduce environmental problems. At the end of the trip on Tuesday, Schallenberg wanted to meet with Industry and Commerce Minister Nguyen Hong Dien.
Austria and Vietnam: trade volume worth billions
With the escalation of the conflict in Taiwan, Vietnam has gained importance as many large companies such as Samsung and Apple are moving their production there from China. Since 2020, European companies have benefited from a free trade agreement between the EU and Vietnam, which aims to remove virtually all trade barriers. In the previous year, the bilateral trade volume between Vietnam and Austria reached 1.65 billion euros, while Austrian exports accounted for only 226 million euros. After all, they rose by 24 percent, while imports from Vietnam increased by almost 13 percent to 1.36 billion euros.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
