11:44 | 15/12/2014 Investment
(VEN) - European countries have modern technologies, high financial capabilities and advanced management. Therefore, if Vietnam well exploits FDI flows from the EU, it will fulfill the goal of attracting FDI selectively for in-depth economic development.
The manufacturing and processing industry has great attractiveness to the EU investors Photo : Can Dung
High quality FDI flows
Statistics of the Ministry of Planning and Investment’s Foreign Investment Agency (FIA) showed that, as of November 20, Vietnam had attracted 1,544 investment projects totaling US$18.96 billion in registered capital from 23 of the 28 EU countries.
Like investors from Japan and the Republic of Korea (RoK), European firms have seen the potential and opportunities in the Vietnamese manufacturing and processing industry. EU businesses’ investment in this industry increased continually in recent years. As of November 2014, this sector had attracted 549 EU investment projects with a total registered capital of US$6.04 billion, accounting for 31.89 percent of all EU investment capital in Vietnam until that time. This sector was followed by electricity, gas, water and air-conditioner industries that had attracted 19 EU projects totaling US$3.52 billion in capital (accounting for 18.6 percent of all EU investment in Vietnam), and the information and communications sector that had attracted 169 EU projects with a total registered capital of US$2.19 billion (accounting for 11.5 percent of all EU investment in Vietnam).
European investment was mainly found in sectors with modern technology and a high added value.
According to the FIA, boosting EU investment will contribute to accelerating Vietnam’s industrialization and help the country quickly satisfy its economic development demand and have modern, high quality projects at a reasonable cost.
Policies needed to encourage Vietnamese Europeans to invest in Vietnam
EU investment in Vietnam remained disproportionate with the potential. Each EU project in Vietnam had an average capital of US$12.3 million, while foreign investment projects in the country had an average capital of US$14.3 million each.
There is a big Vietnamese community in the EU. Vietnam should have timely, proper policies to encourage Vietnamese residing in the EU to invest in the country. Vietnamese Europeans can function as a bridge through which EU investors can learn about investment opportunities in Vietnam. According to representatives from the FIA, to be more attractive to European investors, Vietnam needs to adopt drastically a series of measures, including improving the investment environment, completing the legal system and foreign investment policies, expanding foreign investment attraction areas, persifying forms of investment, removing barriers about planning works and supporting investors to reduce production costs.
Vietnam also needs to facilitate EU projects to help them operate efficiently, which will introduce the image of Vietnam to other potential investors; organize seminars on investment promotion and create favorable conditions for EU and Vietnamese enterprises to seek mutual investment opportunities and provide incentives to encourage overseas Vietnamese investment in Information and Technology, education, medical care, research and development and tourism.
By Nguyen Phuong