EU companies pour capital into Vietnam

11:55 | 07/05/2015 Economy

(VEN) - As of the end of March 2015, 23 EU member countries have poured capital into Vietnam through 1,607 valid projects with a total registered capital of US$19.7 billion. EU companies have great expectations for an increase in investment capital in Vietnam, especially as negotiations for the EU-Vietnam Free Trade Agreement (EVFTA) is expected to be concluded within the coming months.

EU companies pour capital into Vietnam

EU companies have strengthened trade and investment promotion activities in Vietnam

The Netherlands topped the EU countries investing in Vietnam with 233 projects and a total registered capital of US$6.63 billion, accounting for 33.6 percent of total EU capital in Vietnam, followed by France (429 projects, US$3.38 billion), the UK (204 projects, US$3.18 billion) and Luxembourg (32 projects, US$1.57 billion).

EU countries have promoted investment in 18 sectors in the Vietnamese economy. The manufacturing and processing industry ranked first with 566 investment projects with a total registered capital of US$6.27 billion, accounting for 31.8 percent of total EU capital in Vietnam, followed by power, gas, water and air conditioning production and distribution (19 projects, US$3.53 billion) and the real estate sector (34 projects, US$2.2 billion).

Hanoi ranked first in terms of attracting investment capital from EU countries with 371 projects with a total capital of US$3.4 billion, followed by Ho Chi Minh City with 591 projects and a total capital of US$2.8 billion. In addition, the provinces of Ba Ria-Vung Tau, Quang Ninh and Dong Nai have also attracted a large amount of investment capital from EU countries.

Jan Naplava, the EU representative from the delegation to Vietnam said that Vietnam is an important trading partner for the EU and the two sides are keen to conclude the conclusion of negotiations on the EVFTA. Vietnam is also an attractive destination in the eyes of EU investors thanks to improved business and investment environment.

According to the European Chamber of Commerce in Vietnam (EuroCham), the overall trading situation in Vietnam will be improved, through an increased number of employees as well as investment capital in several EU companies.

To take the most of upcoming opportunities, the EU has organized support programs, focusing in particular on small and medium-sized enterprises to enter and expand markets in the ASEAN region. For instance, the Business Avenues program has been set up to help EU companies understand the characteristics of the ASEAN market and establish long-term cooperation relations.

During the initial pilot period of this program, more than 100 companies have been selected to participate in three trade promotion events together with Vietnamese, Singaporean and Malaysian businesses focusing on such fields of interior design and green technology. The program will offer strategic, logistic and financial support for small and medium-sized enterprises from the EU to help them establish experience in these fields.

Jan Naplava added that a small group of the EU delegation will come to Ho Chi Minh City in June to seek cooperation opportunities in green technology.

By Thanh Thanh