EU businesses willing to expand investment in Vietnam

Vietnam a leading investment destination

During a recent dialogue with Prime Minister Pham Minh Chinh to strengthen EU-Vietnam trade and investment relations, EU Ambassador to Vietnam Julien Guerrier noted that the bilateral trade value between the EU and Vietnam reached over US$68 billion in 2024, with the EU-Vietnam Free Trade Agreement (EVFTA) playing a key role in this growth.

According to Ambassador Julien Guerrier, the full and effective implementation of the EVFTA will provide a solid foundation for the EU-Vietnam partnership to grow further. This development also underscores the need for Vietnam to continue improving its investment environment with clear, predictable, and consistently applied regulations across the country, as well as streamlined decision-making processes.

EU businesses recommend that Vietnam further improve administrative procedures Photo: VNA

The EU is committed to ensuring the full ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) as soon as possible. The EU also recognizes Vietnam’s ongoing administrative reforms and the determination of its leadership in expediting decision-making, reducing business costs, and simplifying investment procedures.

Ambassador Julien Guerrier also emphasized the EU’s commitment to supporting Vietnam’s green transition and economic modernization. He highlighted the importance of regulatory transparency and alignment with international standards to maximize trade and investment potential between the EU and Vietnam. Furthermore, he reaffirmed Europe’s willingness to expand investment, transfer technology, and create more opportunities in Vietnam.

Drawing an analogy to the aftermath of Super Typhoon Yagi, where no houses in Hai Phong collapsed because they were built on solid foundations, EuroCham Vietnam Chairman Bruno Jaspaert likened Vietnam’s legal framework to a strong foundation for sustainable growth and for reinforcing its position as a top investment destination. Simplifying administrative procedures and reducing legal burdens will not only help Vietnam attract investment, but also ensure its long-term economic stability.

Further improving investment environment

According to the latest EuroCham Business Confidence Index (BCI), 75 percent of European businesses consider Vietnam an attractive investment destination. However, EuroCham acknowledges that challenges remain for European businesses operating in Vietnam. One major concern is the implementation of the Extended Producer Responsibility (EPR) regulations, where clearer guidelines are urgently needed to help businesses comply effectively.

Nguyen Hai Minh, Vice Chairman of EuroCham Vietnam, noted that Circular 07/2025, which provides guidelines for the Environmental Protection Law, offers businesses greater clarity on cost structures and compliance deadlines regarding EPR. However, businesses have expressed concerns about the impact of special consumption tax and global minimum tax policies. They have proposed reasonable tax policies to help Vietnam maintain its competitive edge in attracting investment.

Another key legal issue raised is on-site import-export regulations. Businesses have highlighted bottlenecks in current practices that affect their operations and long-term investment strategies. Resolving this issue would help liberalize trade flows and position Vietnam as a new logistics hub in the region, alongside Singapore.

Furthermore, Koen Soenens from DEEP C emphasized that improving customs procedures and minimizing supply chain disruptions are critical to enhancing export-import efficiency and logistics operations. Esra Bora from CMA-CGM also acknowledged Vietnam’s role in regional trade and urged the Government to address supply chain congestion. Sustainable transportation initiatives, such as zero-emission electric barge services, could help reduce CO2 emissions in logistics.