Bilateral Economic Relations between Czech Republic and Vietnam, Situation and Solutions

Abstract

The bilateral economic relations between Czech Republic and Vietnam were established from very early time, during 1960s-70s under manner of communist partners. Both sides did obtain significant achievements in trade, labor export and development assistance before the collapse in Eastern Europe and the split of Czech Republic in 1993. After 1993, especially after the EU entry of Czech Republic, the relations have had many dramatic changes, both advantages and disadvantages challenging all respects of cooperation, including trade, FDI, ODA and labor export. Bilateral trade has been taken under new bilateral and multilateral agreements, increase but with slow growth until remarkable improvement from 2005. The export-import commodity structures have been still kept traditional. Trade balance is surplus for Vietnam and the difference becomes larger. In comparison with other partners, bilateral trade between two countries is modest and less competitiveness. The obtained results are not as equal as potentials and capacity. FDI between Czech Republic and Vietnam has been improved remarkably for recent years. The number and scale of FDI projects into Vietnam are increasing surprisingly .However, the efficiency of Czech FDI is very limited until now. By contrast, Vietnam is adding some new projects in Czech Republic...