The European Union (EU)’s investment in Vietnam now tops 30.4 billion USD, ranking as the sixth largest foreign investor in Vietnam. Two-way trade hit 68.5 billion USD last year.

Hanoi – Prime Minister Pham Minh Chinh chaired a dialogue with European enterprises in Hanoi on March 2 to boost cooperation and investment, aiming to achieve a growth rate of at least 8 per cent this year, paving the way for double-digit growth in the years ahead.

The event also the attendance of Deputy PMs Ho Duc Phoc and Nguyen Chi Dung, Head of the EU Delegation to Vietnam Ambassador Julien Guerrier, representatives from embassies of EU nations, 15 leading Vietnamese groups and corporations and 16 top European firms.

The European Union (EU)’s investment in Vietnam now tops 30.4 billion USD, ranking as the sixth largest foreign investor in Vietnam. Two-way trade hit 68.5 billion USD last year.

European representatives praised Vietnam’s business and investment climate, highlighting recent regulatory reforms that have improved transparency, clarity, and decisiveness in the legal framework for investors.

PM Pham Minh Chinh (centre) and Deputy PMs Ho Duc Phoc (left) and Nguyen Chi Dung (right) at the dialogue. (Photo: VNA)

The EU-Vietnam Free Trade Agreement (EVFTA) has further encouraged European businesses to expand their investments in Vietnam, contributing to the country’s economic growth. Through the Just Energy Transition Partnership (JETP), the EU is supporting Vietnam in achieving net-zero emissions by 2050.

A recent survey revealed that 75 per cent of European enterprises recommend Vietnam as a key investment hub, reflecting strong confidence in the country’s economic potential.

European enterprises expressed their commitments to long-term operations in Vietnam, pledging to work closely with the Vietnamese Government, ministries and agencies to draw more international investors to the country.

They called on Vietnamese ministries and agencies to effectively implement the EVFTA, particularly regulations on taxation and fees. They underscored the need for faster decision-making, streamlined administrative procedures, and simplified requirements for work permits.

Expressing their interest in expanding investments in Vietnam, especially in strategic infrastructure, emerging industries such as semiconductor, digital transformation, high technology, aviation, electronics, logistics, and clean energy, the representatives said they are willing to help Vietnam achieve its goal of becoming a developed country by 2045.

Vietnam needs to ramp up global promotion efforts to attract tourism and investment, improving its national competitiveness and global brand presence, they said.

Thanking the ambassadors, the Head of the EU Delegation, and European corporations in Vietnam for their frank, sincere, and constructive and responsible discussions, PM Chinh assured attendees that the Vietnamese government, along with relevant ministries and agencies, would carefully review all feedback from the event, as well as define specific tasks, timelines, expected outcomes, and measurable results to promptly address key issues and achieve major development goals.

PM Chinh stressed the need for global solidarity and approaches as well as coordinated efforts to effectively tackle fast-changing and unpredictable global challenges.

Reflecting on 35 years of Vietnam-EU diplomatic relations, PM Chinh praised the EU’s support for Vietnam’s development, especially in the fields of economy, investment, and trade. He acknowledged Europe’s shared commitment to the Vietnamese people’s pursuit of freedom and prosperity.

PM Chinh stressed Vietnam’s economic growth targets of at least 8 per cent this year and called for Europe’s continued support to help the country reach the goal, thus maintaining momentum for double-digit growth in the coming years.

He highlighted Vietnam’s strategic advantages, including a large population, a prime geopolitical position in Asia’s growth region, and a stable, peaceful environment conducive to development. These factors, he said, make Vietnam an ideal hub for production, business, and exports.

PM Chinh affirmed Vietnam’s readiness to welcome high-level EU leaders for substantive visits aimed at fostering a more favourable environment for European businesses and improving Vietnam’s investment and business climate.

Mentioning existing challenges, the PM acknowledged procedural bottlenecks, compliance costs, slow decision-making, and issues related to taxation and customs. He assured that the Vietnamese government is committed to resolving these obstacles based on principles that benefit both European businesses and Vietnam’s economic growth.

Sharing Vietnam’s socio-economic achievements in 2024, the PM expressed his gratitude for the EU’s contributions and the role of European businesses in the country’s success. Looking ahead, he underscored Vietnam’s determination to achieve even higher growth rates and become a major economic, trade, and investment hub in Asia by 2030.

The PM called on EU businesses to expand their operations in Vietnam, positioning the country as a key production and supply chain hub. He reassured European investors of Vietnam’s commitment to providing opportunities, trust, and necessary conditions, making the nation a safe and beneficial investment destination.

The Government leader noted that in 2024, Vietnam saw its international credit rating upgraded, and in response, the country has focused on three strategic breakthroughs on institutions, infrastructure, and high-quality human resources development as well as on open policies, seamless infrastructure connectivity, and smart governance.

He said to meet the demands of high-tech industries such as semiconductor manufacturing, artificial intelligence (AI), cloud computing, and quantum technology, Vietnam aims to train 50,000 semiconductor engineers. The Government, meanwhile, is set to cut at least 30 per cent of administrative procedures, reduce 30 per cent of administrative costs, and shorten decision-making time for investment and business approvals by at least 30 per cent.

The PM stated that Vietnam remains steadfast in maintaining independence, sovereignty, territorial integrity, political stability, social order, and legal stability, ensuring a secure and stable business environment for European enterprises.

He called on European investors to carry out greater high-quality investments, boost advanced technology transfer, and support skilled workforce development for Vietnam in such areas as green economy, digital economy, circular economy, creative economy, knowledge-based economy, sharing economy, new energy, development of financial centres, green finance, marine economy, biotechnology, and healthcare.

Representatives of European businesses and organisations. (Photo: VNA)

PM Chinh also urged stronger collaboration between European businesses and their Vietnamese counterparts to assist the latter’s supply chain integration, market diversification, and turning into a long-term production and business hub for the EU. The leader also encouraged the European partners to engage in consultancy serving Vietnam’s institutional building and policymaking.

The PM called on the European business community to advocate for the swift ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) by nine remaining EU member states, as well as the European Commission (EC)’s lifting the IUU “yellow card” against Vietnamese seafood exports. He called for their participation in the country’s project to grow 1 million hectares of low-emission rice in the Mekong Delta, and support for the EU’s continue official development assistance (ODA) for Vietnam through bilateral cooperation channels.

The Vietnamese Government is committed to ensuring the foreign-invested sector remains a vital part of the national economy, while safeguarding the legitimate rights and interests of enterprises, PM Chinh affirmed.