Around 110 senior executives representing nearly 40 European companies visited Hà Nội from November 4 to 6 to explore opportunities for deeper business and investment ties with Việt Nam.

Led by the EU-ASEAN Business Council (EU-ABC), the visit came as Việt Nam and the EU mark six years of the EU-Việt Nam Free Trade Agreement (EVFTA) in August and after the upgrade of bilateral relations to a Comprehensive Strategic Partnership in January.

In an interview with Việt Nam News reporter Vũ Hoa, EU-ABC Vice Chair Noel Clehane, who is also Global Head of Public Policy at BDO, a global accounting and advisory firm, discusses Việt Nam's growing appeal to European investors, opportunities for cooperation and the policy improvements needed to unlock greater trade and investment.

How should the EU-Việt Nam Comprehensive Strategic Partnership translate into stronger investment and business ties in the coming years?

The partnership should go beyond the immediate issues of market access and tariff reductions under the EVFTA, which has been in force for more than six years. It should support deeper economic integration between Europe and Việt Nam, and ASEAN more broadly, particularly through supply chains and the development of Việt Nam as a regional business hub.

One priority is greater regulatory predictability and consultation with foreign businesses during the policy- and law-making process. Tax policy, for example, is a concern for some of our members, who fear that increases in taxes across certain sectors could offset some of the benefits gained from tariff reductions under the EVFTA.

Cross-border data transfers and personal data protection are other areas where clearer and more facilitative regulations could help deepen trade and investment.

The business outlook, however, remains positive. Our latest survey shows that 64 per cent of EU-ABC members intend to expand operations in Việt Nam over the next five years. EuroCham Vietnam's latest Business Confidence Index also recorded 78.3 points, with 90 per cent recommending Việt Nam as an investment destination.

A more enabling policy environment would help turn this confidence into stronger investment and bilateral trade.

Which sectors offer the greatest opportunities for European businesses in Việt Nam over the next five to 10 years?

Việt Nam is already one of the most attractive destinations in ASEAN for European investment. Its appeal could be further strengthened by policies that encourage foreign companies to establish closer links with local businesses and supply chains, rather than simply setting up subsidiaries.

Opportunities span a wide range of sectors, particularly healthcare, biotechnology, sustainable manufacturing, aviation and financial services. Education is another promising area, with Vietnamese students benefiting from European universities and bringing knowledge and expertise back home.

European companies also have considerable experience in green and sustainable manufacturing, supported by long-established environmental standards and reporting requirements. As Việt Nam makes green growth and digital transformation central to its economic development, European businesses are well positioned to contribute technology, expertise and solutions.

What advantages does Việt Nam have in becoming a regional business and supply chain hub for European companies?

Geography is one of Việt Nam's greatest advantages. It is strategically located within a few hours of major markets, including China, India, Japan, the Republic of Korea and ASEAN economies, giving it considerable potential as a regional supply chain and distribution centre.

Việt Nam has also developed a substantial industrial ecosystem over the past 10 to 15 years, alongside an increasingly educated workforce. Continued investment in infrastructure, including ports, airports and motorways, further strengthens its competitiveness.

However, infrastructure alone is not enough. A predictable and business-friendly regulatory environment is equally important. Investors will choose destinations where doing business is straightforward, not simply where tariffs are low.

Businesses still encounter challenges in areas such as inconsistent customs procedures, taxation, data protection and limited private sector consultation on new legislation. Việt Nam has an extensive network of free trade agreements, but their benefits can only be fully realised if companies can operate efficiently.

Where do you see the biggest opportunities for EU-Việt Nam cooperation in green technology, renewable energy and sustainable manufacturing?

These sectors offer significant opportunities for Việt Nam to move up the value chain, attract higher-quality investment and strengthen technology transfer and links between foreign investors and domestic businesses.

European companies have extensive experience in green manufacturing, sustainability reporting and emissions management. In renewable energy, Danish firms are global leaders in wind power, while British and French businesses have expertise in wave energy. Europe also has considerable experience in developing and managing integrated electricity grids.

These capabilities could support Việt Nam's energy transition and its ambition to develop a more sustainable economy. European businesses can also contribute to circular manufacturing models and advanced production technologies.

The key is to create mutually beneficial partnerships that enable technology transfer while ensuring a supportive environment for long-term investment.

What are the main concerns European businesses will raise with the Vietnamese Government during this visit?

Our message is not a list of complaints, but a set of recommendations on how to facilitate more investment and trade in both directions.

We support Việt Nam's ambition to pursue technology-driven, higher-quality economic growth and believe European companies can help achieve these objectives. Stronger links with Vietnamese businesses are essential.

Some priorities include simplifying customs procedures, improving access to public-private partnerships and investment incentives, and strengthening intellectual property protection.

The latter is particularly important for European companies in technology-intensive and services sectors. Intellectual property is often central to their competitive advantage. Businesses need confidence that their technology and expertise will be adequately protected and that technology transfer will take place on mutually beneficial terms.

Greater access to capital and more flexible mechanisms for mobilising investment would also help attract European businesses. More broadly, consultation with foreign investors on legislation covering areas such as land, employment, immigration and planning would help prevent unintended regulatory barriers.

Việt Nam is already a major success story for international investors. Many European companies have operated in Việt Nam for decades and continue to promote the country as an investment destination.

Việt Nam is also increasingly important to European companies' supply chain diversification strategies. It is no longer viewed simply as a low-cost manufacturing base for exports to Europe. ASEAN is a major market in its own right, with a population of nearly 700 million and a growing middle class, while Việt Nam is strategically positioned to serve the wider region.

The EVFTA has significantly boosted bilateral trade, particularly Vietnamese exports to Europe. The Comprehensive Strategic Partnership now offers an opportunity to build on that progress.

Ultimately, Việt Nam should continue improving its regulatory environment, removing barriers to investment, facilitating capital flows, protecting intellectual property and consulting businesses on new policies. Eliminating even relatively minor obstacles can make a significant difference to investors' decisions and help Việt Nam attract more high-quality European investment.

Source: VNS

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