Vinh Phuc Province expects EU investment wave

08:55 | 18/02/2020 Economy

(VEN) - Economists are forecasting that the Free Trade Agreement and Investment Protection Agreement signed between Vietnam and the EU in June 2019 would pave the way for a wave of European investment in Vietnam. Vinh Phuc Province, in particular, is expected to be an attractive investment destination for European firms.

vinh phuc province expects eu investment wave
The EVFTA will open opportunities to attract investment from the EU

According to the Vinh Phuc Planning and Investment Department, in 2018 and 2019, the province attracted two investment projects with total registered capital of US$33.7 million from the Netherlands; one project worth more than US$250,000 from Germany; one project with investment of more than US$1 million from France; one project worth US$25 million from Sweden; and two Italian investment projects with total capital of more than US$90 million.

While these projects indicate EU investor trust in the investment environment in Vinh Phuc Province, northwest of Hanoi, the results remain modest and incommensurate with the long-term potential of the locality and investors.

To attract high-quality, environmentally friendly projects with high socioeconomic potential, the mountainous province has invested in upgrading urban and rural infrastructure and developing services. The locality has selected a world-leading consulting group to help it draw up a strategic plan for urban development as a tool for managing investment promotion.

So far, the province has made plans to develop 50 industrial zones and industrial parks for small and medium-sized enterprises on a total area of more than 5,897ha, located along national highways. It has also made efforts to improve the business and investment environment and enhance the provincial competitiveness index.

To make the most of opportunities offered by the EU-Vietnam Free Trade Agreement (EVFTA), Vinh Phuc Province sent investment promotion delegations to the Netherlands, Germany, Czech Republic and other countries and territories, with six workshops attracting the participation of nearly 500 investors. The delegations worked with 100 organizations and businesses to introduce the province’s investment and business environment. In 2019, the province received and worked with 82 delegations of foreign investors, businesses and investment consulting organizations, including many investors from EU countries such as the Netherlands, Germany and Italy.

In 2019, Vinh Phuc Province attracted 1,139 investment projects including 755 domestic investment projects with total registered capital of VND80.9 trillion and 384 foreign direct investment projects with total capital of more than US$5 billion from 17 countries and territories.

Hoang Lan