It is no secret that the Corona-crisis has been a hard blow to international economy but for the bilatteral trade between Vietnam and Finland the first six months of 2021 has been very profitable. The two countries could report an 61,2% increase in turnover from mutual trade compared to last year. In figures that amounts to US$ 285 million. Vietnam’s exports to Finland doubled to $168.5 million, while imports also rose by 20% to $116 million.
According to the minister of Industry and Trade in Vietnam, Nguyen Hong Dien, the success of the two countries can especially be attributed to the EU-Vietnam Free Trade Agreement (EVFTA) and the effort made by both countries to strengthen the trade condition between each other.
The EVFTA is a deal to reduce duties on EU exports in Vietnam as well as making European business in Vietnam easier by limiting restrictions on European investments and giving European companies a fair chance to compete for government contracts in Vietnam.
Another main contributing factors is the Finnish Public Sector Investment Facility (PIF) program. The program is meant to support public sector investments in developing countries that comply with the sustainable development goals of the UN and utilize Finnish expertise and technology. One of these countries is Vietnam where Finland in 2021 has signed agreement to provide more than $100 million for public investment projects.
These investments also support Finnish companies that supply the know-how and technology to develop these projects.
The Vietnamese export products to Finland especially include steel, footwear, machinery, and garment products.