Vietnam has undergone profound changes since first opening its doors to FDI more than 30 years ago.
There is still no representative from the EU, however, among its ten largest sources of investment. The EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) are expected to help the country pull in substantial investment waves from the bloc following the COVID-19 pandemic.
At the end of 2019 there were nearly 2,380 existing projects from EU companies with total registered capital of more than 25 billion USD. The EU is currently the largest investor in ASEAN but is only Vietnam’s fifth-largest FDI partner.
FDI from EU countries has not only fallen short of potential but has also been growing only slowly. The two agreements are expected to ignite new waves of FDI from the EU to Vietnam.
FDI from the EU is a source of capital from companies that are highly-skilled and experienced in management and possess world-leading technologies. Investment from the EU also meets high standards regarding corporate social responsibility in terms of workforce protection and training as well as environmental protection. These factors are necessary for Vietnam’s development.
According to the Foreign Investment Agency under the Ministry of Planning and Investment, to receive investment waves from the EU as well as other countries post-COVID-19, Vietnam is promptly introducing four groups of measures, including investment promotion and selective investment attraction, while preparing the necessary conditions to welcome investors and provide incentives to proactively select high-quality FDI in the time ahead./.VNA