Why more European investors are choosing Viet Nam

In a move to help companies and communities rebound after a tumultuous year, Vietnam and Europe are seeking to build stronger connections between businesses and the local government in order to boost the prospects of greater trade and investment.

Vietnam is moving in the right direction.

I sympathise with the government in this very difficult situation that we are facing, but I am very confident that the whole European business community in Vietnam, will support the country.

Despite the difficulties of the pandemic, with the gradual return to normality and with signed free trade agreements, foreign trade and investment activities will continue to grow, helping companies and economies on both sides to rebound and recover after the pandemic.

We are eager to see concrete improvements in the business environment, especially to address barriers in administrative procedures, facilitate companies to bring medicines to market faster, and maintain supply.

European companies and institutions can help by providing capital, technology, expertise, and especially understanding how the different models work and bring results.

Many companies investing in Vietnam respect its worldwide social and governance policies, and they cannot afford to stay long without fully guaranteed renewable energy.

Driven by the EU-Vietnam Free Trade Agreement, investment from the bloc into Vietnam has moved in a positive direction over the past year, with bright prospects ahead on the back of the EU-Vietnam Investment Protection Agreement coming into force.

Many other EU investors like Germany, France, Spain, and Denmark have also hiked their investments in Vietnam to diversify their supply and value chains.

In fact, EU investment in Vietnam remains lower than expected, and lags behind other foreign investors like South Korea, Singapore, and Japan.

Vietnam will become a strategic investment destination in the process of restructuring the global and regional supply chain, and a high-potential domestic market to attract international corporations.

Together with the EVFTA, the EVIPA will help align Vietnam with international standards and practices, and further integrate the country into the global economy by introducing reformed and modern investment protection rules.

This will further encourage European investment in Vietnam.

We have seen a real positive trend in investment activities from European investors in Vietnam.

We are confident that once Vietnam’s regulatory framework for the wind sector is fully in place, more developers and companies in the supply chain will choose Vietnam.

This success also proves that Vietnamese companies have successfully improved their product quality to meet the high standards set out in the EVFTA.

Once the pandemic is brought under control, our economies need to reopen and recover.

This investment flow is not simply closing factories in other countries to open anew in Vietnam, but rather opening new factories here and integrating them with the others.

The simultaneous implementation of the EVFTA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership will help Vietnam’s GDP increase by up to 3.2 per cent in this decade.