Prime Minister Pham Minh Chinh and Hungarian President Katalin Novak at the COP 28 Conference in Dubai, UAE. (Source: VGP)

Over the past 7 decades, the traditional friendship between the two countries has continued to be maintained and developed. Could the Ambassador share the significance and key contents of the Prime Minister's visit to Hungary this time?

This is the first official visit to Hungary by our Prime Minister in 15 years and the first visit by Prime Minister Pham Minh Chinh. This is also the first Prime Minister-level meeting since the two countries upgraded their relations to Comprehensive Partnership in 2018, and the Prime Minister is also the first high-ranking guest that Hungarian Prime Minister Viktor Orban will officially welcome in 2024. The visit takes place in the context of the two countries aiming to celebrate the 75th anniversary of the establishment of Vietnam-Hungary diplomatic relations (February 3, 1950 - February 3, 2025).

In the context of the general difficulties of the world economy, geopolitical instability and despite the geographical distance, the visit aims to affirm the importance of the relationship between Vietnam and Hungary, the only Central Eastern European country with a comprehensive partnership with Vietnam. At the same time, the Prime Minister's visit will continue to consolidate political trust, maintain high-level contacts, exchange measures to deepen political-diplomatic relations, enhance cooperation in multilateral forums, promote cooperation in traditional areas such as economics-trade-investment, defense-security, development cooperation, education-training, health, environment, culture-tourism, etc.

The visit of the Head of Government will also contribute to further promoting cooperation in potential areas such as high-tech agriculture, renewable energy, labor, information technology, digital transformation, green transformation, etc.

In addition, during the visit, the two Prime Ministers will discuss measures to support and promote Vietnam-EU and ASEAN-EU cooperation in the context that Hungary will be the rotating President of the European Council for the last 6 months of 2024, affirming that Vietnam is ready to act as a bridge for Hungary to enter the ASEAN market and hopes that Hungary will be a gateway for Vietnamese goods to penetrate the regional market.

Ambassador Nguyen Thi Bich Thao welcomed National Assembly Chairman Vuong Dinh Hue to visit and encourage officials and staff of the Vietnamese Embassy and representatives of the Vietnamese community in Hungary during her visit in June 2022. (Source: quochoi.vn)

The visit is also an important milestone within the overall policy of our Party and State to continue implementing the foreign policy set forth by the 13th Party Congress on independence, self-reliance, diversification, multilateralization, and demonstrating respect for Vietnam's traditional friends.

During the visit, the two Prime Ministers will witness the signing of cooperation documents in a number of areas such as diplomacy, culture, water management, cooperation between universities of the two countries, etc. At the same time, Prime Minister Pham Minh Chinh will also have a series of activities such as: attending and giving an important speech at the Vietnam - Hungary Business Forum, meeting with the business communities of the two countries, promoting the finding of solutions to strengthen economic and investment cooperation based on the strengths of each country.

The Prime Minister will visit and work with a number of Hungarian businesses, deliver a speech at the Hungarian National University of Public Administration, sending a strong political message, affirming that Vietnam is a reliable and responsible partner, contributing to peace, stability and development in the region and the world. At the same time, the Prime Minister will visit the Embassy and meet with the Vietnamese community in Hungary.

I believe that with the close attention of the two countries' senior leaders and the substantive and effective work content, Prime Minister Pham Minh Chinh's visit will create new developments to promote the increasingly stable and sustainable Comprehensive Partnership, bringing practical benefits to the people of the two countries.

Hungary is one of the first three EU countries to ratify the EVIPA Agreement, agreeing to promote trade and investment cooperation, fully and effectively implement the EVFTA Agreement... What results has this brought and will it bring in economic, trade and investment cooperation between the two countries, especially in new areas of cooperation, Ambassador?

Economic, trade and investment relations between Vietnam and Hungary have developed well in recent times. Two-way trade between the two countries increased from 354 million USD in 2017 to over 1.2 billion USD by 2022, reaching an average growth rate of 33%/year during this period. Of which, Vietnam's exports to Hungary increased from 207 million USD in 2017 to 577.6 million USD by 2022, reaching an average growth rate of 37%/year.

Notably, during this period, the total import-export turnover between the two countries reached over 1 billion USD for 3 consecutive years from 2020 to 2022, despite being significantly affected by the Covid-19 pandemic.

Ambassador Nguyen Thi Bich Thao met with Mayor of Debrecen Laszlo Papp on November 3, 2023. (Source: VOV)

In 2023, with the general difficult situation, in addition, the Hungarian economy is in a recession due to the impact of the post-Covid-19 period as well as the armed conflict between Russia and Ukraine, which has affected the two-way trade results between the two countries. It is estimated that the total import-export turnover between Vietnam and Hungary in 2023 will reach about 900 million USD, down about 25% compared to 2022.

Regarding Hungary's investment in Vietnam. Up to now, Hungary has 22 projects with a total registered capital of 72.28 million USD, ranking 51st out of 143 countries and territories in the world with FDI capital in Vietnam.

With a population of over 9.6 million people, although considered a small market in the EU, the two-way trade results between Vietnam and Hungary in recent times have been remarkable, reflecting the effects of the EVFTA.

I believe that in the coming time, with the early recovery of the Hungarian economy as well as the efforts and good utilization of the EVFTA benefits by businesses on both sides, the economic and trade relations between Vietnam and Hungary will soon regain their inherent growth momentum.

Vietnam has always been in the top of Southeast Asian exporters to Hungary, showing that the Hungarian market has great potential for Vietnamese businesses. According to the Ambassador, what should the business community and localities do to continue to "maintain" their advantages and further expand into this market?

That's right, Vietnam is always in the top of Southeast Asian countries exporting to Hungary. In particular, for 3 consecutive years (2020, 2021, 2022), it ranked first in Southeast Asia exporting to Hungary.

Although the turnover is still low, some traditional agricultural export products of Vietnam have a certain position in this market, such as cashew nuts accounting for over 40% of the market share, cinnamon accounting for about 18% of the market share, coffee accounting for about 13.8% of the market share, rice accounting for about 6% of the market share, pepper accounting for about 5% of the market share.

Notably, rice products, in the first 10 months of 2023 alone, Vietnam's rice export turnover to Hungary reached 2.7 million USD, an increase of 174% over the same period in 2022, market share increased from nearly 2% in 2022 to 6% in 2023, is one of the bright spots in trade promotion and export promotion in 2023.

Ambassador Nguyen Thi Bich Thao introduces Vietnamese paintings at an event organized by the Embassy. (Source: Vietnamese Embassy in Hungary)

These are Vietnam's advantageous products in the Hungarian market that need to be promoted for development, because Hungary cannot produce these agricultural products and is completely dependent on imports to meet domestic consumption needs, even though the market capacity is not large.

In general, to maintain and increase exports to the Hungarian market, the business community as well as localities need to plan production and business in accordance with market demand, stabilize and ensure supply as well as meet the demand for transporting goods according to the committed contract, focus on product quality, meet EU standards, improve designs, beautiful packaging, and competitive prices.

On the other hand, proactively seek new partners and new products that have the opportunity to penetrate the market in the current context, such as agricultural products and food. Avoid relying too much on one group of products such as electronic components today, because when the market is saturated or there are fluctuations or shifts in investment and production, it will immediately affect export results. Increase the organization of business delegations to Hungary to research the market, meet directly with local partners to seek investment and business opportunities. Increase the sending of catalogs and samples for the Embassy to introduce and promote to local partners. Increase the examination and verification of businesses to minimize risks in business and investment.

The Vietnamese community in Hungary is a stable community, well integrated with the host country. How does the Ambassador evaluate the role of people-to-people exchange and cultural connection between the two countries through this "bridge" role in promoting friendship and multifaceted cooperation between the two countries?

The Vietnamese community in Hungary, with more than 6,000 people, has integrated well and contributed to the economic development of the locality and always turned towards the homeland, actively participated in movements launched by the country, is an inseparable part of the great national unity bloc, plays the role of an important bridge, enhances understanding and mutual trust between the people of the two countries, and contributes to promoting the good traditional friendship between Vietnam and Hungary.

Art performance to celebrate Spring 2023 at the Vietnamese Embassy in Hungary. (Source: VNA)

People in Hungary have had many meaningful community activities contributing to preserving national identity while building and conveying the message of a peaceful, friendly and amicable Vietnam to Hungarian and international friends such as: organizing and participating in major, traditional holidays of the nation such as Lunar New Year, Mid-Autumn Festival, or cultural and people-to-people exchange events such as "Vietnam Cultural Night", Vietnamese Women's Forum in Europe (June 2023), hosting the 3rd European Overseas Vietnamese Business Forum (September 2023).

They always actively promote the spirit of mutual love, launch charity and humanitarian movements at nursing homes, schools for disabled children in Budapest and other major localities before Christmas and New Year every year; connect culture, art, education, and translate Vietnamese and Hungarian literature to gradually increase the ability to understand and the harmony of souls in the spiritual life of the two peoples of Vietnam and Hungary.

In particular, in 2023, the associations and the Embassy organized an incense offering ceremony at the only statue of President Ho Chi Minh in Central and Eastern Europe to celebrate his birthday (May 19) and Vietnamese Cultural Day in Zalaegerszeg, including cultural and artistic performances, people-to-people exchanges, giving away nearly 2,000 meals, and expressing gratitude to the local people who have carefully preserved and cared for the statue of Uncle Ho for nearly 50 years, a vivid testament to the loyal and complete affection of the two peoples.

The Vietnamese Embassy in Hungary always accompanies, joins hands, and contributes to the Association of Vietnamese in Hungary and Vietnamese associations and groups in Hungary to build a united and strongly developing community, strengthen economic cooperation connections, people-to-people exchanges, promote culture and national quintessence, contributing to promoting the Comprehensive Partnership between Vietnam and Hungary.

Thank you very much Ambassador!

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