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VIỆT NAM SEES RISING EUROPEAN INVESTMENT INFLOWS
European businesses operate nationwide, but are most concentrated in major cities and industrial hubs like HCM City, Đồng Nai, Hà Nội, Bắc Ninh and Quảng Ninh.
The bulk of European capital has been directed towards processing and manufacturing, energy and gas, real estate and information and communications. — VNA/VNS Photo
HÀ NỘI — Việt Nam is witnessing a steady rise in foreign direct investment (FDI) from Europe, with increasing businesses viewing the country as a strategic destination, particularly in clean energy, high technology, semiconductors and infrastructure.
Figures show that European investors channelled US$2.5 billion of FDI into Việt Nam in 2022, climbing to $3.25 billion two years later.
The continent now accounts for nearly 2,500 projects in the Southeast Asian country, with the Netherlands, France, Luxembourg and Germany together contributing around $20 billion.
The bulk of European capital has been directed towards processing and manufacturing (36.3 per cent), energy and gas (20.7 per cent), real estate (11 per cent) and information and communications (6.6 per cent).
Although European businesses are present in almost all provinces and cities, the largest concentrations are found in metropolises and industrial hubs such as HCM City, Đồng Nai, Hà Nội, Bắc Ninh and Quảng Ninh.
At a recent B2B networking event in Hà Nội that brought together 100 Italian firms and 200 Vietnamese counterparts, Michal Ron, chief international business officer at Italian insurance and finance group SACE, affirmed that Việt Nam is always considered a priority market for Italian companies.
She expected that the EU-Việt Nam Free Trade Agreement (EVFTA) will create further opportunities, spurring greater investment from Italy to Việt Nam.
Many large European investors have come to Việt Nam in recent years. Among them, LEGO of Denmark has built a toy factory worth $1.3 billion in HCM City.
Nguyễn Hải Minh, vice chairman of the European Chamber of Commerce in Việt Nam (EuroCham), said European investments are gravitating towards emerging sectors such as clean energy, high technology and logistics, with the aim of positioning Việt Nam as a regional transhipment hub.
Lê Anh Dũng, chief executive of the Institute for International Investment Studies (ISC), added that investors from Denmark and Germany are particularly active in renewable energy.
However, analysts said FDI from Europe remains modest compared to Việt Nam's attraction potential, cautioning that limitations in human resources, infrastructure, institutional framework and administrative procedures continue to pose major challenges. — VNA/VNS
Source: VNS
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