Remarks by H.E. Mr. Ton Sinh Thanh, Vietnamese Ambassador at the National Chamber of Commerce and Industries,

Mr. President

Members of National Chamber of Commerce and Industries

Ladies and gentlemen,

Thank you very much for giving me this opportunity to discuss about Vietnam- Sri lanka economic relations. First of all, I would like to say that our relationship not only has a firm foundation and also has good opportunities to develop. An important foundation is the traditional friendship and very good political bonds between our two countries. The initial contacts between us can be dated back hundred years ago.  Both countries had to struggle to regain our independence. Early last century, our great leader Ho Chi Minh on his way to Europe had twice stopped over in Colombo and later he met with some Independence fighters of Sri Lanka. We can never forget the support of the Sri Lankan people to our struggles against Imperialism in the 60s and 70s last century. The two countries closely coordinated in the Non-aligned Movement.

Vietnam and Sri Lanka have many similarities that constitute another foundation for our relationship. Beside the same history, we both have important location: Vietnam is at the heart of Southeast Asia while Sri Lanka is at the centre of Indian Ocean. Our culture and religions have many things in common.

Our relationship is problem-free. Moreover, our two people always share good feelings and sympathy to each other. We maintain our mutual support and close coordination in the international arena at presence. Thus, the  traditional friendship and strong political bonds between the two countries have become an invaluable inherent  property that constitutes a strong foundation  for our relationship.

New developments in both countries and the world are openning a lot of opportunities for our cooperation.  With the end of the civil war, Sri Lanka in its process of reconstruction need to carry out many projects in tourism, agriculture, fishery and aquaculture, road and port development, oil and gas exploration… This process definitely needs a lot of domestic and external resources. I am sure foreign investors will find Sri Lanka a good venue for their venture as it is now a very peaceful county, the macro-economic situation is well managed with low inflation, unemployment and interest, growing stock exchange market, and high foreign reserves. The country is very beautiful with many tourist spots and beaches. That is why the number of tourists visiting Sri Lanka is increasing fast.

At the same time, there are a lot of opportunities for Sri Lankan business in Vietnam which is now a big market with a the purchasing power of 85 million people. The labour is still cheap,  the government offers many incentives so foreign investor can make high profit. Since renovation in 1986 up to now, Vietnam has attracted nearly US$ 200 billion of FDI, every year 20 billion. It is a success story of Vietnam, that we can share with Sri Lanka. Moreover, Vietnam can be a source of FDI for Sri Lanka. We have made US$ 10 billion investment  abroad. If it is encouraged by Sri Lankan Government, Vietnamese companies can invest in some projects like oil and gas exploration, telecommunication, aquaculture, agricultural machineries. In term of tourism, Vietnam received 5 million foreign tourists last year, we may well receive 6 million people this year.  The number of Vietnamese going abroad is also increasing. That’s why we can promote two-way tourism between the two countries.

Though the world economy looks gloomy now,  there are still some silver edges. The debt crisis in the US and Europe may cause some difficulties for our exports, but at the same time due to this crisis, the companies there may have to move their production to developing countries like Vietnam and Sri Lanka. The rising labour costs in China is also the reason for the investors to move their capital  to Vietnam and Sri Lanka…There may be a new wave of FDI to our countries that we should not lose. We should create most favourable conditions for them to come.

Thus, there are strong foundation and potentials for economic relations between Vietnam and Sri Lanka. The two-way trade volume reached US$ 93 million last year, an increase of more than 50% from 2009, but it is a very small proportion in the trade volume of both countries with the world: Vietnam trade with the world is now US$ 170 billion; Sri Lanka’s is  about 20 billion. In terms of investments and tourism, the interactions between our two countries are also limited. The level of economic relations between our two nations remain much under potentials that we should make lot of efforts to wake up.

Against this background, what can we expect from the relationship between the two countries? In my opinion, we should try to become strong economic partner of each other. In 2015, the two countries should aim at reaching US$ 200-300 million of two-way trade, US$ 200-300 million of two-way investments and 10 thousand tourists from each side. To achieve the above targets, lot of works have to be done.  We should have more exchange of business delegations. We should exchange the lists of trade fairs from both sides and encourage more participation in trade fairs from each side. We should find ways to make use of the FTA between Sri Lanka and India, Pakistan. Other necessary measures include strengthening of legal corridors by signing more agreements, setting up more  connectivity such as banking and shipping, telecommunication and direct flight. At the same time, the governments of the two countries should enhance the effectiveness of cooperation mechanisms such as Joint Commission and working groups.

In conclusion, we would like to express our hope that Vietnam and Sri Lanka would not only maintain our traditional friendship but would develop a fruitful economic partnership. In this process, the business sectors of the two countries, including the members of the National Chamber of Commerce and Industries of Sri Lanka, play an important role.

Thank you for your attention.