HUBA Chairman Chu Tien Dung (R) and AmCham Vietnam Executive Director John Rockhold sign the cooperation agreement on July 7 (Photo: VNA)

HCM City (VNA) – The Ho Chi Minh City Union of Business Associations (HUBA) has signed an agreement with the American Chamber of Commerce in Vietnam (AmCham Vietnam) to promote their members’ partnership in transferring technology and expanding investment chances.

Speaking at the signing ceremony on July 7, HUBA Chairman Chu Tien Dung said boosting the connectivity and technology transfer between FDI and domestic businesses is a target of his union’ cooperation with foreign business associations in Vietnam in the time ahead.

Vietnam has been attracting a relatively big flow of foreign investment, but FDI firms’ transfer and domestic companies’ absorption of technology remain modest, he noted.

He attributed the problem to Vietnamese enterprises’ lack of necessary preparations for receiving new technologies. Meanwhile, the country’s FDI attraction policy hasn’t had binding conditions forcing foreign businesses to transfer technology to or support the development of domestic ones.

As a result, for a long time, FDI businesses only focused on capitalising on raw resources like natural resources and low labour cost while not paying much attention to making use of the business development ecosystem or intelligence resources to improve the value of Vietnamese contribution to their products.

The country also lacks a concrete plan or strategy for enhancing the connectivity between FDI and domestic firms. There are very few technology transfer projects between the two sides at present, and they have been carried out only between certain businesses or localities, Dung said.

He noted that the agreement between HUBA and AmCham is one of the first steps to improve bilateral cooperation to support their member entrepreneurs and businesses in transferring technology, expanding investment chances and developing the market in the two countries.

Executive Director of AmCham Vietnam John Rockhold said trade and investment ties between Vietnam and the US are developing well. To boost the connectivity between US and Vietnamese firms, AmCham will actively realise the cooperation deal. In particular, they will regularly organise meetings and exchanges between enterprises to share experience and discuss investment and business opportunities.

AmCham will also encourage US companies to share experience, assist and transfer new technologies, and seek and introduce development supporting resources to Vietnamese firms to build a basis for cooperation and mutual support towards sustainable development in the future, he added.-VNA