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News release


4 March 2008

Lord Mayor meets Vietnamese PM

Several deals between UK and Vietnamese businesses worth an estimated 1 billion USD have been signed in London today as His Excellency Mr Nguyen Tan Dung, visited the United Kingdom for the first time as Prime Minister of Vietnam.

Lord Mayor of the City of London, Alderman David Lewis welcomed Vietnamese Prime Minister Dung at the Mansion House. They oversaw the signing of a number of deals with UK-based companies today at a function organised by UK Trade and Investment.

Lord Mayor David Lewis said:

“Vietnam has seen tremendous growth over the past decade. The number of trade deals signed today has shown that the City is committed to play a full part in ensuring that Vietnam reaches its enormous potential.”
 
UK Trade and Investment’s Chief Executive Andrew Cahn said:

“The UK is already one of the largest EU investors in the Vietnamese market, with around 79 investment licences issued by the Vietnamese Ministry of Planning and Investment to date.

“Due to Vietnam’s recent economic development and the increase in demand, UK Trade and Investment has added extra manpower to both our Hanoi and Ho Chi Minh City offices which ensures that we will continue to offer a high standard of service ready to help British business succeed in Vietnam.”  

These deals are in addition to future contracts potentially worth around $3 billion that will be discussed during the visit.

Trade figures show that the Vietnamese economy has seen GDP growth over 7% pa over the past few years, making it an attractive investment option for many UK businesses.

Notes for editors

Deals that were signed at the Mansion House today include:

  • A consultancy agreement was reached between Vietnamese bank Bao Viet and HSBC which will enable HSBC to provide and develop training and consultancy services for Bao Viet employees on the financial market and on products and services in the insurance market.
  • Standard Chartered Bank has agreed an arrangement with INCOM Bank that will provide a funding loan to allow the Vietnamese partner to achieve the minimum capital holding required for equitisation.
  • UK-based exploration and production company, Salamander Energy, signed a reciprocal agreement with PetroVietnam (PV) which will see PV take a working interest as a partner in Savannakhet Block (operated by Salamander) and Salamander taking a working interest as a partner in PV’s Champasak & Saravan Block operation
  • An agreement between oil and gas company SOCO International plc and Petro Vietnam (PV) involves PV taking over a SOCO exploration acreage in the Republic of Congo and the Democratic Republic of Congo. 
  • UK-based consultancy, Mott MacDonald, signed an agreement with Lilama Corporation, to provide engineering, procurement, consultancy and training for the development of a Thermo cycle power plant.

Vietnam, facts and figures:

  • Member of the World Trade Organization (WTO) in January 2007.
  • UK’s 85th largest export market worldwide
  • UK exports in 2007 up 39.7% on 2006
  • Current GDP growth 8.17% 
  • Inflation at 6.6% 
  • Growth in major cities of Hanoi and Ho Chi Minh City is approximately 20% GDP
  • GDP US$53b  
  • Foreign Direct Investment (FDI) in 2007 $3.9 billion

Press contact

Press enquiries to Loretta Lui at the City of London on 020 7332 1528 or loretta.lui@cityoflondon.gov.uk


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