National Assembly leader encourages NZ investment in Vietnam

Mike Cronin, managing director of Fonterra, at a meeting with Vietnamese National Assembly chairman Vuong Dinh Hue (R) in Auckland.

Meeting with Mike Cronin, managing director of Fonterra, Hue acknowledged the firm’s cooperation with Vietnamese enterprises such as Vinamilk and Nutifood in supplying and distributing milk in the Vietnamese market.

However, he said the current trade turnover between the two countries remains low, at around US$2 billion, while New Zealand’s direct investment in Vietnam is modest, not commensurate with their potential.

He suggested that Fonterra increase and expand investment cooperation in Vietnam, especially in the areas of dairy farming, as well as human resource training and technology transfer, in order to produce high quality dairy products not only in Vietnam but other countries in Southeast Asia.

Hue assured the NZ executive that Vietnam is making efforts to improve its legal system, creating maximum conditions for investors and ensuring healthy competition.

Cronin welcomed Hue’s ideas and suggested that the Vietnamese side continue to create favourable conditions for foreign investors, including Fonterra, to come and do long-term business in the country.

While meeting with John Fiso, chairman of Fiso Investment Group, and Nguyen Truong Khoa, director of Viet River Holdings, Hue welcomed the firms’ business connectivity and investment plans which are being deployed in Vietnam.

He stated that one of the goals of his official visit to New Zealand is to promote the strategic partnership between the two countries, of which trade-investment cooperation is an important pillar. During the visit, he said the two sides are expected to organize two important forums on educational cooperation and economic, trade and investment cooperation.

This is an opportunity for businesses and investors of the two countries to learn and promote cooperation in the coming time, Hue said.

CEO Fiso, for his part, said his group is stepping up post-pandemic investment, focusing on health, education and import of Vietnamese products. It is engaging in building high schools and vocational schools in Vietnam, ramping up labour cooperation and supporting Vietnamese businesses to invest in New Zealand.

CEO Khoa expressed desires to bring Vietnamese workers to New Zealand and increase the import of Vietnamese pepper and coffee products into the New Zealand market.

Hue highly appreciated the firms’ future operation plans, saying education is one of Vietnam’s priority areas to attract investment, and suggested the firms discuss the plans with relevant Vietnamese ministries and agencies for specific implementation.

With regard to labour cooperation, the National Assembly chairman shared the success stories on labour cooperation with Australia, and asked the firms to make a proposal so that the two Governments would sign an agreement on labour cooperation, creating a solid legal framework for cooperation in this field.

The leader also suggested that the firms import more goods from Vietnam and export New Zealand products that Vietnam needs.

The same day, National Assembly chairman Vuong Dinh Hue also received executives of Re/Max that specializes in the real estate market, and VietTechNZ – an IT solutions provider in New Zealand.

Hue is in Auckland for an official visit to New Zealand at the invitation of Adrian Rurawhe, speaker of the House of Representatives.