09:32 | 23/06/2016 Economy
(VEN) - Twenty-four countries in the European Union (EU) have invested 1,809 projects in Vietnam with total registered capital of more than US$23 billion accounting for 8.7 percent of total foreign direct investment (FDI) projects and 8 percent of total FDI registered capital in the country.
According to the Ministry of Planning and Investment, EU investors have focused on 18 of the 21 sectors in Vietnam. The top three sectors include the processing and manufacturing sector attracting more than US$8 billion, real estate US$3.85 billion, and power and water supply US$3.58 billion.
The top five investing countries are the Netherlands, the UK, France, Luxembourg and Germany accounting for 84.3 percent of total EU investment in Vietnam. Of these, the Netherlands took the lead with US$8 billion accounting for 34.9 percent, the UK US$4.8 billion and 20.7 percent, and France US$3.4 billion and 14.8 percent.
EU investment projects have strengths in terms of new and environmentally-friendly technology. EU projects also take advantage in terms of quick capital disbursement, high quality and advanced management.
Increasing investment promotion activities
Although EU businesses are currently present in 51 of Vietnam’s 63 provinces and cities, most of them are located in major economic centers like Ho Chi Minh City, Hanoi, Ba Ria-Vung Tau and Quang Ninh. According to the Ministry of Planning and Investment’s Foreign Investment Department, EU investment in Vietnam does not match the potential and Vietnam’s FDI attractiveness.
To better attract EU investment in the near future, it is necessary to intensify foreign investment promotion activities focusing on EU strengths such as high-quality services, finance and banking, trade, electronics and computer science. In particular, it is needed to build industrial parks, high technology, support industries and high-grade resorts to increase the attractiveness to EU investors. In addition, localities need to promote EU ongoing projects by resolving problems for them in order for them to operate well and speak about Vietnam as a good destination for other EU companies which intend to invest in the country.
Vietnamese Trade Counselor in Belgium and the EU Nguyen Canh Cuong said that European businesses spoke highly of the Vietnamese investment environment and that many European companies have recently intended to expand to Asia including Vietnam. However, they do not know much about the country. For this reason, Vietnamese authorities need to show how much the Vietnamese economy has improved in recent years, how much the country has changed during the recent decades, and how many investment opportunities Vietnam has offered, regarding advantages in terms of labor, market and investment incentives.