In a bid to foster stronger ties, Vietnam and Romania are intensifying their cooperation across various sectors. Prime Minister Pham Minh Chinh’s official visit to Romania served as a platform to discuss and solidify partnerships in research and development, oil and gas projects, and particularly, artificial intelligence (AI).
Vietnam’s commitment to attracting Romanian investments is underpinned by the goal of creating favorable conditions for foreign investors. During the Vietnam – Romania Business Forum, Prime Minister Pham Minh Chinh extended a warm welcome to all foreign investors, including those from Romania. He emphasized Vietnam’s dedication to facilitating long-term, effective, and sustainable investments that align with the principle of ‘harmonizing benefits and sharing risks’.
The focus of collaboration extends to various sectors where Romania holds expertise and Vietnam displays burgeoning potential. These sectors include education, culture, labor, and the burgeoning spheres of digital economics, green and circular economies, science and technology, AI, and emerging industries.
Vietnam’s dedication to enhancing its investment climate revolves around three core strategies: institutions, human resources, and infrastructure. These strategies aim to reduce input costs for businesses and investors while bolstering competitiveness, ultimately driving effective, sustainable, and long-term development within the nation.
Oil and gas collaboration
During his visit to Prahova province, Romania’s industrial, oil, and gas hub, Prime Minister Pham Minh Chinh highlighted Vietnam’s involvement in expanding oil refineries, constructing gas power plants, and investing in the oil and gas sector. This presents a golden opportunity for Prahova companies to join hands with Vietnam. Romanian Minister of Economy, Entrepreneurship, and Tourism, Stefan-Radu Oprea, encouraged Romanian businesses and Prahova province to increase investment in Vietnam, highlighting Vietnam’s rapid economic growth and its extensive network of free trade agreements.
Research and development in AI and cybersecurity
The collaboration extends into the realm of research and development, particularly in areas of high relevance today, such as AI and cybersecurity. Prime Minister Pham Minh Chinh’s visit to the National Institute for Research and Development in Informatics (ICI) emphasized the importance of joint projects in these fields. The ICI, which plays a pivotal role in establishing internet infrastructure, data centers, and cutting-edge technology projects in Romania, expressed its readiness to collaborate with Vietnam. This collaboration encompasses various domains, including AI, cybersecurity, and IT applications across multiple sectors.
Trade between Vietnam and Romania has been on the rise, reaching nearly $431 million last year. Key exports from Vietnam to the European market include machinery, textiles, aquatic products, computers, electronic products, steel, and coffee. In contrast, imports from Romania surged by 44.8% to nearly $148.7 million, primarily comprising wheat, maize, animal feed, pharmaceuticals, wool fabrics, and wood.
Investment landscape
As of December 2023, Romania had six valid projects in Vietnam with a total registered capital of $1.68 million, while Vietnam recorded one project worth $600,000 in Romania. Romania’s role in assisting Vietnam with the EU-Vietnam Free Trade Agreement negotiations and the EU-Vietnam Investment Protection Agreement has solidified its position as a supporter of enhanced economic integration.
Romania’s role in the height of the COVID-19 pandemic further solidified its relationship with Vietnam. Romania was the first EU country to provide vaccine aid to Vietnam, a pivotal act that enabled Vietnam to navigate the crisis and set the stage for economic recovery.
Both countries have signed an education cooperation program that extends until 2026, reinforcing their commitment to strengthening educational ties. This program aims to foster collaboration in various educational domains, further enhancing the partnership between Vietnam and Romania.
Romania, with its population of 500 million, can function as a gateway for Vietnamese products to access the European market. The significance of this access cannot be understated, and it opens up opportunities for both countries to expand their trade and economic cooperation.
Source: https://www.cryptopolitan.com/vietnam-and-romania-strengthen-cooperation/