Federal Councillor completes her working visit to Vietnam and Thailand – focus on infrastructure and sustainability

Bern, 06.04.2018 - During her working visit to Vietnam and Thailand, Federal Councillor Doris Leuthard signed a new civil aviation agreement with Vietnam, met with the Prime Minister of Vietnam and several government officials from both countries, and attended a variety of events focusing on green growth, infrastructure and urban development. Thailand’s deputy Prime Minister, Somkid Jatusripitak, proposed a strategic partnership for intensifying bilateral relations.

The purpose of her meeting with Vietnamese Prime Minister Nguyen Xuan Phuc was to strengthen the long-term relations between Switzerland and Vietnam. Switzerland has been providing economic development aid for the past 25 years. During their meeting they discussed bilateral relations, the framework conditions for Swiss investors, the negotiations on a free trade agreement between EFTA and Vietnam and the implementation of the signed civil aviation agreement (cf. Press release dated 3 April 2018), which provides better framework conditions for airlines. The Prime Minister also proposed close cooperation in the field of innovation. As a rapidly emerging economy, Vietnam is one of the priority countries for Switzerland’s economic development cooperation. Switzerland is especially supporting Vietnam by helping it to sustainably structure its economic growth, which has been stable for many years and is above the average level for Vietnam’s Southeast Asian neighbours.

The head of the Federal Department of the Environment, Transport, Energy and Communications (DETEC) also held talks with several Vietnamese government ministers. During her meeting with Trade and Industry Minister Tran Tuan Anh, who is responsible for energy policy, the discussion focused on how the rapidly increasing demand for energy by Vietnam’s economy can be met in a more environment-friendly manner. Here the emphasis was on increasing energy efficiency in the industry and transport sectors, as well as in buildings and electricity networks. Federal Councillor Leuthard suggested broadening the scope of bilateral cooperation in these areas, as well as on the Vietnamese government’s planned expansion of hydropower production. She pointed out that Switzerland possesses tried-and-tested technologies and comprehensive know-how in this field. With Environment Minister Tran Hong Ha she discussed financing mechanisms for preserving biodiversity and the positive impact of internationally applicable standards the protection of the environment. Here she drew attention to the “Better Gold” initiative developed by Switzerland, which aims to create environmental and social standards in the commodities sector with the aid of incentives. They also reached agreement on closer cooperation in the areas of climate protection and water and waste management. In her meeting with Planning and Investment Minister Nguyen Ching Dung the focus was on Vietnam’s approach to Swiss investors and on economic cooperation. She discussed ongoing transport projects with Transport Minister Nguyen Van The, as well as the financing of road and railway and water infrastructure.

At a business forum held in Hanoi on the topic of green growth and attended by Swiss and Vietnamese government officials and business representatives, the head of DETEC emphasised that prosperity and sustainability are by no means contradictory. She stated that Switzerland could support Vietnam on its path to a green economy through knowledge and technology transfer, as well as financial aid.

The challenge of urban development

In Ho Chi Minh City, in the south of the country, Federal Councillor Leuthard attended an event together with specialists and politicians that focused on the issue of urban development. Here she drew attention to the large number of “Energy Cities” in Switzerland and pointed out that, in view of its rapid population growth (2015: 8.2 million inhabitants; forecast for 2030: 13 million), Ho Chi Minh City is confronted with the challenge of combining quality of life and the more efficient use of resources. Integral urban planning is therefore essential. The national, regional and local governments need to work closely together to foster the construction of transport routes and infrastructure for the supply of water and energy, as well as digital infrastructure.

The schedule included a meeting with the Deputy Mayor of Ho Chi Minh City and a visit to Saigon Hi-Tech Park, which houses leading technology companies, notably in the fields of electronics, data management, telecommunications and bio- and nanotechnology, and positions Vietnam as a country with an investment-friendly climate.


Thailand: Strong economic and political momentum

In Thailand’s capital, Bangkok, Federal Councillor met with Deputy Prime Minister Somkid Jatusripitak. Their discussion initially focused on an evaluation of the bilateral cooperation that has been ongoing since 1932 and has made pleasing progress. Switzerland is the ninth-largest investor in Thailand. Somkid underscored the fact that Thailand is open to further Swiss investment and innovation, specifically in the areas of energy efficiency and mobility. He also proposed the formation of a strategic partnership in order to intensify bilateral relations, and Switzerland will closely examine this offer. Federal Councillor Leuthard emphasised the importance of the democratisation process in Thailand, noting that an important step had been taken in this direction with the announcement of elections to be held in 2019.  

Her talks with deputy Transport Minister Pailin Chuchotethaworn focused on the impacts of the Chinese “Belt and Road Initiative” on Thailand. The aim here is to connect the axis of this Initiative between China and Indonesia with Thailand’s Eastern Economic Corridor. The latter is a state-sponsored economic zone encompassing three provinces in the east of the country where industries with new technologies are to be housed. Here, infrastructure costing billions will be required. In addition, an agreement was reached to cooperate on issues relating to road safety. Switzerland has succeeded in reducing the number of accident victims on its roads in the past few years thanks to the measures defined in its “Via sicura” programme. There is still a need for action in this regard in Thailand.

In her meeting with Energy Minister Siri Jirapongphan, the focus of the discussion was on Thailand’s intention to increase the use of renewable energy. The goal here is to reduce the country’s dependence on gas imports and coal-fired power plants. Thailand’s energy policy is being rapidly adapted to technological and market developments, for example through the increased use of renewable energy and the expansion of the electricity network, or through measures aimed at promoting energy efficiency. Here, too, there are opportunities for cooperating with Swiss companies and the federal administration. Federal Councillor invited Minister Siri Jirapongphan to pay a visit to Switzerland.

Rhine Convention as a model for the protection of the Mekong

The head of DETEC also held talks with the deputy Environment Minister, General Ekachai Chansri. Their discussion focused on the “Green Mining” project, by means of which the government aims to introduce an incentives system in order to reduce pollution resulting from the mining of minerals. Federal Councillor Leuthard praised this commitment and offered Thailand support for the protection of the Mekong River, while drawing attention to Switzerland’s experience with regard to the cross-border protection of the Rhine.  

Finally, the head of DETEC attended an event celebrating the twentieth anniversary of the Swiss-Thai Chamber of Commerce. Here she emphasised the importance of efficient infrastructure for a country’s cohesion and economic success. She stated that the intention by the Thai government to promote digitisation (“Thailand 4.0”) and the linking of the Eastern Economic Corridor and the Belt and Road Initiative will clearly pay off. She explained that Switzerland has a great deal of experience in the construction and reliable financing of major infrastructure projects: “Our engineering expertise is Swiss quality of the highest degree,” she noted, and went on to underscore the importance of applying international standards when implementing the Belt and Road Initiative. She added that Switzerland is also networking with the world through digitisation and the free movement of people and goods: “For both Thailand and Switzerland, openness is a good recipe for the future – especially in an era in which we are witnessing increasing protectionism.”

On her working visit, Federal Councillor Leuthard was accompanied by representatives of Swiss companies from the infrastructure, energy and transport sectors, as well as by Hans-Peter Wessels (cantonal councillor of Basel-Stadt and President of the Conference of Cantonal Public Transport Directors.) 


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General Secretariat of the Federal Department of Environment, Transport, Energy and Communications; General Secretariat DETEC
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