Govt seeks investment from Vietnam in auto sector

ISLAMABAD: Government on Tuesday sought investment from Vietnam into the country’s auto sector that offers a number of incentives for new investors.

“Pakistan has recently introduced the auto policy and Vietnam can get benefit from that policy by investing in auto sector,” Murtaza Jatoi, minister for industries and production told a visiting delegation from Vietnam. 

The delegation was led by Cao Quoc Hung, vice minister of industries and trade of Vietnam. In 2016, government announced a new auto policy, which will be valid till 2021, carrying incentives and duty concessions for new entrants and existing vehicle manufacturers to bring well-known international brands to the Pakistani market.

The policy promises multiple green field investment incentives for installation of new and independent automotive assembly and manufacturing facilities in the wake of growth in auto demand in the country. 

Minster Jatoi said the visit is reflective of the increasing ties between Pakistan and Vietnam and will certainly provide impetus to further expand bilateral relations in various sectors especially economic, trade and commerce, investment and other areas of mutual interest.

“Pakistan is a strategically-located at a regional hub with abundant land and natural recourses, strong human resources, large and growing domestic market, well-established infrastructure and legal system,” he added. “Foreign investors are allowed to hold 100 percent equity and enjoy tax concessions.”

Industries minister said the two countries have immense potential for economic and commercial relations and the current trade volume could be substantially enhanced. “Pakistan offers excellent opportunities for foreign investors in special economic zones.”

Meanwhile, Vietnamese trade minister Hung reiterated his government ‘un-flinched’ support for Pakistan’s full dialogue partnership with Association of Southeast Asian Nations, “which will usher in new vistas of cooperation in the fields of trade and investment between the two countries.”

He expressed this view during the 4th session of Pakistan-Vietnam joint ministerial commission attended by Arif Ahmed Khan, secretary of Economic Affairs Division.  A statement said government proposed Vietnamese side to move forward on preferential trade agreement during the forthcoming meeting of joint trade committee. 

Both sides showed their resolve for enhanced cooperation in agriculture, science and technology, and information technology sectors through frequent interaction of joint working groups that will yield productive results. 

“The bilateral investment and establishment of banking channels will be catalyst in realising these objectives,” the statement added. Vietnamese side was offered to invest in information technology, food processing and automobile sector in Pakistan.

Two sides developed consensus for frequent interaction of trade bodies and trade exhibitions in order to enhance the volume of bilateral trade in coming years.  Both sides discussed and agreed to initiate steps to enhance bilateral trade and economic cooperation in agriculture, information technology, education, health, investment and banking and industrial sectors