Vietnam welcomes Luxembourg’s investment in various sectors

By Hoang Thuy, Nguyen Tien   December 10, 2022 | 08:22 am PT
Vietnam welcomes Luxembourg’s investment in various sectors
Vietnam Prime Minister Pham Minh Chinh (R) and Luxembourg Prime Minister Xavier Bettel are pictured during a welcome ceremony at Clairefontaine Square, Luxembourg, on December 9, 2022. Photo by Nhat Bac
Vietnam is seeking the support of Luxembourg in its effort to establish an international financial center in HCMC and it has invited businesses from the country to invest in various sectors.

During the talks with with Luxembourg Prime Minister Xavier Bettel on Friday, Vietnam’s Prime Minister Pham Minh Chinh called on Luxembourg businesses to increase their investment in areas such as strategic infrastructure, digital transformation, renewable energy and pharmaceutical technology.

Chinh wants Luxembourg to provide financial and technological support for Vietnam to develop its renewable energy industry and to implement climate change adaptation projects, especially in the Mekong Delta.

Chinh and Bettel agreed to promote the early establishment of a strategic green finance partnership framework to support Vietnam in implementing its National Green Growth Strategy and efforts to respond to climate change, including implementing the commitments made at the 2021 United Nations Climate Change Conference (COP26).

Chinh asked Luxembourg to push other EU countries to quickly ratify the EU-Vietnam Investment Protection Agreement and to support the European Commission in speeding up the removal the yellow card, or warning for not doing enough to tackle illegal, unreported and unregulated (IUU) fishing.

The two sides agreed to expand cooperation in the fields of national defense, combating transnational crimes, cyber security, digital transformation, culture, tourism, education and training and transportation.

Bettel supported increasing scholarships for Vietnamese students to study in Luxembourg and establishing a close cooperation mechanism between the Ministries of Education and universities of the two countries.

The two sides reaffirmed the importance of ensuring peace, stability, security, safety and freedom of navigation and overflight in the East Sea, internationally known as the South China Sea. They also agreed not to use force or threaten to use force, and to settle disputes by peaceful measures, in accordance with international law, especially the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

On Friday afternoon, Prime Minister Chinh visited the Luxembourg Stock Exchange, which is the first stock exchange in the world dedicated exclusively to sustainable finance. The stock exchange is listing half of the world’s green bonds.

To be listed here, the bonds must meet the green and sustainable standards of international organizations and issuers must provide periodic reports on their projects.

Chinh wants to cooperate with Luxembourg to develop Vietnam's stock market from a frontier market to an emerging one.

He also asked Luxembourg to support Vietnam to continue to build and perfect institutions, technology, digital transformation, and management of the stock market to develop openly, transparently, safely, healthily and sustainably.

Vietnam wants to learn from the Luxembourg Stock Exchange's experience in connecting with customers and international markets, as well as the experience of green, sustainable development and climate change adaptation.

"Luxembourg can help Vietnam access these fields quickly, accurately and efficiently," Chinh said.

The Luxembourg Stock Exchange and the Vietnam Stock Exchange on Friday signed a cooperation agreement to connect investment funds and investors to participate more in the Vietnamese stock market.

This is the second time Chinh visited a stock exchange during his overseas business trips. In May, he visited the New York Stock Exchange in the U.S.

Vietnam established diplomatic relations with Luxembourg in 1973. Economic, trade, education and training cooperation between the two countries has developed steadily over the past 50 years. Luxembourg is currently the third largest European investor in Vietnam, with a total capital of $2.6 billion.

The country is considered a global financial center and the headquarters of the world's leading financial investment funds. Luxembourg officials have expressed their desire to promote bilateral trade and investment, as well as to increase cooperation with Vietnam in the field of green economy.

Prime Minister Chinh arrived in Luxembourg Friday, starting his official visit to the country. He will also visit the Netherlands, Belgium and attend the summit to celebrate the 45th anniversary of ASEAN-EU relations in Brussels, Belgium on December 14.

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