Vietnam poised to become SEA’s major economic hub

Vietnam aims to become a major economic, trade, and investment hub in Southeast Asia by 2030.

Prime Minister Pham Minh Chinh stressed the view during a dialogue with 16 European corporations and businesses on March 2.

The government leader said that Vietnam has set a GDP growth target of at least 8% this year, with the goal of achieving double-digit growth in the coming years. This is part of the country’s ambition to become a developed, high-income nation by 2045.

“Vietnam will develop into a major economic, trade, and investment center in Southeast Asia by 2030,” Chinh said.

According to Chinh, Vietnam’s investment and business environment continues to improve, with positive assessments from the international community and investors.

He cited examples such as large international organizations upgrading Vietnam's competitiveness ranking, assigning it a "stable" credit rating, and raising its e-government development index by 15 places. Additionally, the country's economic freedom index rose 13 places, while the global innovation index and sustainable development index gained 2 and 1 places, respectively. Vietnam also ranked in the top 50 countries for cybersecurity.

“Many foreign investors have chosen Vietnam as a strategic manufacturing center, with links to global supply chains,” he added.

This year marks the 35th anniversary of the establishment of diplomatic relations between the EU and Vietnam. The EU is Vietnam’s fourth largest trading partner and the fifth largest investor, with over $30 billion invested in the country. It is also Vietnam’s largest ODA (official development assistance) donor, with a pledge of €210 million for the 2021-2024 period. Bilateral trade between the two sides is estimated at $68 billion in 2024, a 16% increase from 2023.

Julien Guerrier, Ambassador and Head of the EU Delegation to Vietnam, stated that European businesses believe in Vietnam’s potential. They are doing business there and are ready to attract more investors to the country.

He praised the recent reforms by the Vietnamese government as "decisive and impressive," in providing a clear legal framework and regulations. He noted that Vietnam has been quick to find practical solutions and adapt to new situations.

He said both sides need to reduce decision-making time and administrative procedures. The EU is ready to work closely with the Vietnamese government and ministries in this process,” said Guerrier.

According to a survey by the European Business Chamber of Commerce in Vietnam (EuroCham), 75% of the EU businesses surveyed recommended choosing Vietnam as an investment destination.

"There is a need to step up promotion so that the world knows Vietnam as an attractive destination for tourism and business investment," said EuroCham President Bruno Jaspaert. Vietnam is accelerating three strategic breakthroughs in institutions, infrastructure, and human resources, streamlining its bureaucracy, reforming administrative procedures, eliminating rent-seeking mechanisms, and reducing time and costs for citizens and businesses. The government will continue institutional reforms, including cutting at least 30% of administrative procedures and processing time, as well as 30% of business costs.

Chinh urged EU businesses to expand production and business activities, increase high-quality investments, promote the transfer of advanced technologies, and support human resource training in Vietnam. He suggested that investors continue to collaborate in areas such as green, digital, and circular economies, knowledge-based economies, financial centers, green finance, new energy (such as hydrogen), renewable energy, and marine economy (logistics, seaports, offshore wind power, and aquaculture).

The government leader emphasized the need for businesses on both sides need to strengthen cooperation. In this regard, the EU should create conditions for Vietnamese companies to participate more in global supply chains, making Vietnam a long-term business, investment, and production base for EU enterprises in the region.

Chinh also urged the EU business community to advocate for the remaining nine member countries to ratify the Vietnam-EU Investment Protection Agreement (EVIPA) as soon as possible and to urge the European Commission to consider lifting the "yellow card" on Vietnam’s seafood exports, as well as to maintain official development assistance to Vietnam.

Ambassador Julien Guerrier agreed that EU member states should complete the ratification of EVIPA as soon as possible.

At the dialogue, EU businesses discussed several cooperation opportunities and investment directions in areas such as industrial real estate (DeepC Group), innovation (Bosch), sustainable production (Heineken), and agriculture (Bayer). They recommended that the government address regulations related to the extended producer responsibility for environmental protection and wastewater recycling, resolve difficulties for renewable energy projects, establish a direct electricity purchase mechanism, and streamline customs procedures and pharmaceutical market entry.

The Prime Minister reiterated that the Vietnamese government is committed to ensuring that the foreign direct investment (FDI) sector remains a crucial part of Vietnam’s economy, while safeguarding the legitimate rights and interests of investors and businesses. Vietnam also pledges to be a safe and convenient investment destination, ensuring political stability, social order, and a favorable legal environment for investors.