Magazine: Former students can foster Vietnamese-Hungarian relations

In the 1970s and 1980s there were many Vietnamese students studying at Hungarian universities. By now they have become decision-makers in the Vietnamese business sector and in public administration, and they could be instrumental in developing the economic and political relationship between Hungary and Vietnam.

At the end of November 2014 the Hungarian president visited Vietnam and the trip made it clear: Hungarian businesses are welcome in Vietnam. There are 93 million people living in Vietnam and 48 percent of the active population works in agriculture, 21 percent is occupied in the industrial sector and 31 percent are in services. Only 31 percent of the population lives in cities. Agriculture’s contribution to the GDP is 20 percent. Per capita GDP is only USD 4,000 – in this respect Vietnam is 167th in the world ranking. In 2013 economic growth was 5.3 percent and the unemployment rate was 1.3 percent. In 2009 Hungary and Vietnam signed a Framework Programme for Financial Cooperation. A Joint Economic Committee was also set up to coordinate economic cooperation between the two countries. The framework agreement earmarked USD 8.6 million for the modernisation of three farms and the building of an animal feed factory – 51 percent of the sum is to be used for purchasing goods and services from Hungary. Looking back on the years 2012 and 2013 we can see that Hungarian export to Vietnam represented a not too big USD 60 million value, but the 35.4-percent expansion rate was considerable. Food industry products made up for 6 percent of our Vietnamese export in 2013. In the first seven months of 2014 our agricultural export to Vietnam was seven times bigger than in the same period of 2013, and represented a value of USD 18.7 million. However, this surge was mainly generated by 2-3 products such as feather and filling material – we exported 128 tons instead of the 1 ton in the previous year. At its 2012 meeting the Joint Economic Committee reiterated that it is of both countries’ interest to develop bilateral relations, especially in the domains of information technology and infocommunication, the energy sector, agriculture and healthcare. Thanks to the Hungarian president’s recent visit and a major investment project starting in a few months’ time, trade and cooperation in research and education will also enter a new phase. It is important to mention one possible field of investment, which could be beneficial for both countries: fish breeding. There is room for expansion in our agri-food cooperation too. What we can offer is research and development (innovation in agriculture and the food industry), expertise in crop and livestock farming, animal feed production, water management, aquaculture and forest management.