Official Visit to Vietnam Day 3: Stock Exchange, Business Forum, Sustainability

On Friday 5 May 2023, Luxembourg's Prime Minister, Xavier Bettel, the Minister for Small and Medium-Sized Enterprises and Minister for Tourism, Lex Delles, and the official delegation visiting Vietnam on the occasion of the 50th anniversary of diplomatic ties between the two countries, continued their visit in Ho Chi Minh City, with the first stop of the day at the Vietnamese Stock Exchange.

Stock Exchange

Prime Minister Bettel was welcomed by Vu Thi Chân Phuong, President of State and City Stock Exchange (SSC), Nguyen Thanh Long, President of the Vientam Stock Exchange (VNX), Ba Nguyen Thi Viet Ha, President of the Ho Chi Minh City Stock Exchange (HOSE), Tran Anh Dao, CEO of the Ho Chi Minh City Stock Exchange (HOSE), Nguyen Vu Quang Trung, Executive Vice-President of the Ho Chi Minh City Stock Exchange (HOSE), Ngo Viet Hoang Gio, Executive Vice-President of the Ho Chi Minh City Stock Exchange (HOSE), Dau Khac Trinh, President of the local regulator of the Ho Chi Minh City Stock Exchange (HOSE), plus ten Vice-Presidents of the Ho Chi Minh City Stock Exchange.

Upon arrival, Prime Minister Bettel was shown a number of works of art in the foyer and the history of the building was explained by Vu Thi Chân Phuong; he then formally signed the Golden Book. Moving across to the trading building, speeches (in Vietnamese and English) referenced the birth of the securities market in Vietnam 22 years ago as well as the 50th anniversary of diplomatic relations between the two countries.

Prime Minister Bettel thanked the authorities for the invitation to the Hi Chi Minh City Stock Exchange and mentioned Nicolas Mackel, Director of Luxembourg for Finance. He talked about sustainability - "there is no Plan B" - and finding common solutions and working together to find solutions for climate change. He mentioned Luxembourg being the first to establish a Green Exchange and also mentioned sustainable bonds, stressing Luxembourg’s first-mover status. He said that Luxembourg is a leader in sustainable investment globally and looks forward to mutual collaboration with Vietnam. He also referenced a future Luxembourg House of Financial Technology (LHoFT) visit to Vietnam as well as Vietnam’s Finance Minister’s visit to Luxembourg in the near future. He concluded by stating that Luxembourg likes to "teach people how to fish".

After the ringing of the gong to open the exchange for trading that day at 09:00, Prime Minister Bettel was presented with a vase.

Business Forum

The Grand Ballroom in the Hôtel Park Hyatt Saigon was then the venue for the Vietnam-Luxembourg Business Forum which involved around 200 people including 23 companies from Luxembourg who had travelled with the trade delegation. The business forum focussed on the digital economy, logistics, energy/environment, tourism and smart (sustainable and intelligent) construction in the context of green financing, with both Vietnam's Minister for Industry and Commerce, Nguyen Hong Dien, and Luxembourg's Prime Minister, Xavier Bettel, delivering opening remarks.

Prime Minister Bettel was the first speaker of the day: in his welcome address, he referenced why he was present, mentioning Luxembourg including 1% of its annual state budget to development aid, with Vietnam starting to benefit back as far as 50 years ago. He mentioned Vietnamese students studying / having exchanges in Luxembourg, as well as Cargolux which can now fly in and out of Ho Chi Minh City, confirmed by Vietnam’s Prime Minister only the previous day. He also mentioned the visit to VinFast and confirmed that the Chair of VinFast will visit Luxembourg in the coming months. He also mentioned that Luxembourg is the third largest EU investor in Vietnam, with over €2 billion up to the end of last year. He also mentioned green finance and green bonds as examples of how Luxembourg has evolved from an agricultural economy. He stressed that to progress, one needs viable partners. He also mentioned risks such as the war in Ukraine, stressing that joint solutions can solve common problems. On the COVID-19 pandemic, he emphasised that closing borders was not the solution, but working together was. Investing in education, in people, and acknowledging the passion of young people is important. He also mentioned SES, the satellite company based in Luxembourg which was established by foresighted investment. He concluded by stating that this may be the first contact with Luxembourg, but hopefully not the last: partners and friends can build things together.

Vietnam's Minister for Industry and Trade in Vietnam, Nguyen Hing Dien, then addressed the forum, speaking in Vietnamese with English translation provided. Vo Van Hoan, Vice-Chairman of the HCMC People’s Committee, also addressed the Business Forum.

Two memoranda of understanding were then signed, the first between Luxembourg's Chamber of Commerce (signed by Fernand Ernster, President) and Vietnam's Chamber of Commerce and Industry (signed by Vo Than Thanh, Vice-President), and the second between Luxembourg-based Delio Securities, alternative investment fund managers (AIFM), and the Vietnamese company EZLand.

Minister Lex Delles and Fernand Ernster of Luxembourg's Chamber of Commerce then made presentations to the Business Fourm, with Tran Ngoc Liem, Director of Vietnam's Chamber of Trade and Industry, discussing the topic "Business Opportunities for Luxembourg Companies in Vietnam".

This was followed by a workshop on "Bilateral Cooperation in Logistics between Luxembourg and Viêt Nam achieved through top class Supply Chains", moderated by Malik Zeniti, Director at the Cluster for Logistics in Luxembourg, with panellists including Hans Kelderman, CEO at 2 Point 0, Kevin Shek, Vice-President Asia and Pacific at Cargolux Airlines International, Patrick Neumann, CEO at Multigone, Alexander Munk Olsen, Vice-President FM & Commercial at ITL (In Do Trans Logistics Corporation), Tom Tabouring, Commercial Director at ITL Corporation, and Sven Mueller, Director General at CEVA Logistics Vietnam.

Following a number of company testimonials, a networking lunch was then held.

Market, River, War Museum

Meanwhile, before rejoining the main group for the lunch, Prime Minister Bettel paid a short visit to the Bến Thành market (located in one of the oldest structures in Ho Chi Minh City) where he purchased a couple of items before taking a boat tour on the River Saigon with a group of experts to learn about the impact of climate change on the means of subsistence and the ecosystem around the city.

The Prime Minister and official delegation took one boat and the media delegation took another. The Saigon river separates Vietnam and Cambodia, is 250 km long and has four tides daily (just 30 cm). The floating Water Hyancinths are not native, i.e. they are an invasive species introduced to Vietnam. The guide explained that water pollution is a problem and tap water is not potable (drinkable); the major pollution cones from small businesses, not large ones, and projects are underway to clean the water. Another issue is that Chinese rivers are dammed and allow little water through in dry seasons. Water levels are rising and the Mekong Delta is expected to disappear within 50 years. Another issue is sand harvesting which destroys natural habitats. However, the government strictly controls licensing in this area.

The local university is undertaking a number of projects including addressing the circular economy and sustainability, including promoting CSR; one such recent project focuses on addressing plastic problems on islands including promoting single-use plastics. Another project defines indicators for sustainable consumption and production in five sectors: beverage, steel, textiles, food processing and plastics. The new law on environmental protection limits the use of single-use plastics with retailers, both large and small, restricted in this way, e.g. a massive reduction in the use of plastic bags, with businesses expected to recycle their own packaging (e.g. plastic bottles and fast-food packaging). Nevertheless, the enforcement of this law paused during the COVID-19 pandemic and is expected to return shortly. In some of the canals, different fish species are returning as the pollution levels drop.

After lunch within the Business Forum, Prime Minister Bettel visited the War Remnants Museum for a guided tour of the museum dedicated to the Indochina War and to the Vietnam War. The museum serves as a reminder of the atrocities that went on during those times, including the use, and devastating impact, of Agent Orange (mustard gas) by US forces during the Vietnam War.

Logistics Visit

In parallel, Minister Delles and Luxembourg's Trade Delegation visited Indo Trans Logistics (ITL) for a tour of the port facility: ITL is the region's leading provider of solutions for integrated logistics, air services, warehousing, freight management and distribution.

Official Dinner

The last official engagements included a meeting at the Reunification Palace (also known as the Palace of Independence) and a guided tour, followed by an official dinner hosted by Ho Chi Minh City.

Having checked out of the hotel earlier, the official delegation, including both Prime Minister Bettel and Minister Delles, then left for the airport for a late evening departure of an overnight flight back to Europe, returning to Luxembourg mid-morning on Saturday 6 May 2023.