Vietnam has many competitive advantages when it comes to being an attractive destination for foreign investment, according to the European Chamber of Commerce in Vietnam (EuCham)’s Whitebook 2018.
The EuroCham presented the 10th edition of the annual Whitebook publication on 15 March in Hanoi at the “Whitebook Launch and EU-Vietnam Free Trade Agreement Outlook 2018” event.
The most dynamic economy in the region
According to the Whitebook 2018, the EU is second largest overseas market for Vietnam and the destination for 18% of its exports, lagging just behind the US.
With two way trade amounting to US$50.3 billion last year, the EU is now Vietnam’s third largest trade partner and the country enjoys a large trade surplus with the EU (around US$31.8 billion).
In terms of investment, European investors poured US$915.5 million into 151 projects in Vietnam. The EU maintains an active presence in several of Vietnam’s key sectors such as energy and health through development cooperation.
whitebook 2018: vietnam – an attractive destination for foreign investment hinh 1 Addressing the event, EU Ambassador Bruno Angelet, head of the EU delegation to Vietnam, said 2017 has been a fantastic year for Vietnam in terms of macroeconomic performance. With a GDP growth of 6.8%, Vietnam has emerged as one of the most dynamic economies in the region. From an investment perspective, Vietnam managed to attract nearly US$30 billion in foreign direct investment (FDI), a 44.2% rise over 2016. Such conditions make Vietnam an attractive destination for foreign investment.
As an open economy, Vietnam’s economic growth considerably relies on the health of its main partners, including the European Union.
Improved business environment
According to a EuroCham poll, 62.3% of the surveyed companies reported either good or excellent business performance with 70% saying they are confident about the Vietnamese business environment in the future.
Regarding macroeconomic prospects, most European businesses believe in continued macroeconomic stability with 46.4% of surveyed businesses saying the outlook is for a “stable and improved” performance.
Nearly 90% of European enterprises in Vietnam are aiming to maintain or increase their investments this year.