The President of the Swiss National Council visits projects of the Economic Development Cooperation in Vietnam
Local news,
06.07.2023
Hanoi, 6 July 2023 – During his official mission to Vietnam, the President of the National Council of Switzerland, Mr. Martin Candinas, visited two beneficiaries of Switzerland’s economic development cooperation. This gave the delegation the opportunity to gain insight into the work and effectiveness of the Swiss development cooperation in Vietnam.
The field trip to the distribution center of Minh Thai Ltd Co and Yen Bien Mart, a small retailer, showed how both can more easily borrow from HDBank thanks to their business relationships in the Vinamilk and Unilever supply chain. This has been made possible by the Swiss funded Supply Chain Financing (SCF) project. Through this project, IFC advises Vietnamese banks in implementing new credit mechanisms based on movable assets or receivables and supply chain financing. The mechanism leverages the stable business relationships in supply chains around a major business partner (the so-called "anchor") to give suppliers and buyers easy access to financing from their bank. This way Minh Thai Ltd. and Yen Bien Mart were able to benefit from longer payment terms, more favorable interest rates and easier access to credit without collateral.
The aim of the visit to the Regent Garment Factory was to demonstrate the impact of the "Better Work" program co-funded by Switzerland and implemented by the International Labor Organization (ILO). With the support of the program, Regent Garment Factory has significantly improved working conditions, social dialogue and training for workers at the factory. It has also placed a special emphasis on gender equality and empowering women, who make up the majority of the workforce. At the same time, the delegation gained an insight into the textile sector, which continues to be one of the most important contributors to Vietnamese exports.
The delegation was impressed by the impact of the projects. In particular, they highlighted the enormous potential benefits that the SCF project could bring to local SMEs by facilitating access to working capital and financing. They were also impressed by the strong contribution that the Better Work program made to workplace cooperation and a socially and environmentally more sustainable production in the garment sector. In general, the delegation also acknowledged the high work motivation, strong entrepreneurial spirit and great dynamism of the Vietnamese economy.
The visit of the President of the National Council, Mr. Martin Candinas and his delegation to Vietnam took place from 27-30 June 2023. The delegation also included Mr. Eric Nussbaumer, First Vice-President of the Swiss National Council, Ms. Maja Riniker, Second Vice-President of the National Council, and Ms. Ida Glanzmann-Hunkeler, Member of the National Council. The purpose of the visit was to strengthen the partnership between both countries, particularly in the areas of economy and trade, to make progress towards the conclusion of a free trade agreement between Vietnam and the European Free Trade Association (EFTA) and to gain insight on the effectiveness of Swiss development cooperation in the country.
The main objective of the economic development cooperation of Switzerland in Vietnam is to support the country in achieving market-based, sustainable growth. The support is focused on four pillars: (i) the improvement of coherence, transparency and accountability of public finances, (ii) the strengthening and deepening of the financial sector and capital markets, (iii) the enhancement of competitiveness of businesses and facilitation of their access to global value chains, and (iv) the strengthening of urban development planning and urban resilience. With these focus areas, the Swiss economic development cooperation is well positioned in key reform areas that are crucial for Vietnam’s successful further economic development.
For more information:
Ms. Hà Trần, Senior National Program Assistant, Swiss Cooperation Office
