FDI inflows from Europe yet to shift into Vietnam
|
With regard to opportunities to receive EU capital, Nguyen Hai Minh, Vice Chairman of the European Chamber of Commerce in Vietnam (EuroCham), said the shifting of capital from European investors to the nation is not likely to enjoy a rapid increase in the near future.
According to some major groups and enterprises, there is a trend occurring of capital shift, although they still consider this issue to be within ASEAN nations or countries in South Asia such as India, Minh notes.
According to data released by the Foreign Investment Agency under the Ministry of Planning and Investment, as of June 20 the total newly registered figure for FDI, adjusted, and contributed capital to purchase shares for foreign investors had reached US$15.67 billion, representing 84.9% compared to the same period in 2019. In addition, FDI inflows into the country in June recorded an increase, although the waves of shifting investment have yet to be seen.
Nguyen Hai Minh says that European financiers are interested in three key factors in the nation, namely, improving infrastructure, quality human resources, and the investment and business environment, all of which can be considered as "magnets" which serve to attract investment.
Most notably, one of the leading issues among the European Commission as well as the European Parliament is the country’s commitment to trade facilitation for import and export activities, especially with regard to the prerequisite element which is information transparency and customs regulations.
Investors remain cautious
Moving cautiously when making investment decisions in the context of the COVID-19 epidemic adversely affecting the global business environment is currently a necessity for businesses. Therefore, it is difficult to assess the trend of investment shifting from the EU, even with the EVFTA coming into force imminently.
EuroCham's survey during the first quarter of the year on business climate index (BCI) indicates that the COVID-19 has had a significant negative impact on the European business community. Indeed, a similar situation is occurring throughout the world, as the pandemic has had a strong impact on international trade and investment in general.
As a result, the BCI has dropped to its lowest level, down to 26 points from the 77 points recorded in the fourth quarter of 2019.
According to EuroCham, this result directly reflects the impact of the pandemic on the global business climate. Accordingly, 55% of firms surveyed say that the environment for enterprises is either "not good" or "very bad". Furthermore, 93% of them say the COVID-19 has negatively impacted their operations, with more than half judging it to be at a "significant" level. Participants added that the three most negative effects include a reduction in the number of customers and orders, revenue decline, and supply chain disruption.
In order to take part in "handshakes" of co-operation, EuroCham says, the two sides will move to promote the establishment of the Vietnam-Europe Business Council with a view of gathering strength among businesses from both sides, as well as compiling strategies and investment projects in the future.
According to analysis by Giorgio Aliberti, Ambassador of the EU Delegation to Vietnam, the implementation of FDIs are often coupled with a strong boost in trade relations. Moreover, FDIs will serve to increase trade exchange between partners.
Both of these agreements therefore provide the country with the opportunity to become a regional production centre. Compared to similar economies in the region, the nation has the advantage of being a pioneer after negotiating for up to 10 years to have the privilege of accessing the EU market. Only Singapore, which signed and ratified an FTA before Vietnam, is in a similarly favourable position, Aliberti explains.
Related News
Wood exports started well
13:26 | 20/04/2024 Import-Export
Leverage to increase the scale of Vietnam - Laos trade turnover
10:51 | 15/04/2024 Import-Export
Vietnam-China trade reaches over US$ 27 billion
09:29 | 10/04/2024 Import-Export
How more than 6 tons of smuggled gold transported to Vietnam?
07:49 | 05/04/2024 Anti-Smuggling
Latest News
Central Highlands needs to develop border gate economic zones for higher export
16:41 | 29/04/2024 Import-Export
RoK burgeoning market for Vietnam’s agro-forestry-fisheries exports
16:37 | 29/04/2024 Import-Export
Developing a strong brand contributes to increased export revenue
07:49 | 29/04/2024 Import-Export
Export turnover reaches over US$200 billion in the first half of April
15:04 | 28/04/2024 Import-Export
More News
Experts call for efforts in protecting IP rights
15:02 | 28/04/2024 Import-Export
Policies needed to encourage e-commerce to embrace circular economy
15:00 | 28/04/2024 Import-Export
To maintain its billion-dollar export position, forestry and fisheries enterprises propose additional credit limits
06:15 | 28/04/2024 Import-Export
Efforts to supply US $ one billion of raw materials and cosmetics to replace imported goods
06:14 | 28/04/2024 Import-Export
Ample room for Quang Ninh to attract FDI
19:47 | 27/04/2024 Import-Export
Vietnam’s rice exports may exceed 2024 target
19:46 | 27/04/2024 Import-Export
Opportunity for exporting to Thailand market
14:48 | 27/04/2024 Import-Export
Enterprises want clearer regulations on seafood production
14:05 | 26/04/2024 Import-Export
Vietnam ranks fifth among aquatic product suppliers for Singapore
13:53 | 26/04/2024 Import-Export
Your care
Central Highlands needs to develop border gate economic zones for higher export
16:41 | 29/04/2024 Import-Export
RoK burgeoning market for Vietnam’s agro-forestry-fisheries exports
16:37 | 29/04/2024 Import-Export
Developing a strong brand contributes to increased export revenue
07:49 | 29/04/2024 Import-Export
Export turnover reaches over US$200 billion in the first half of April
15:04 | 28/04/2024 Import-Export
Experts call for efforts in protecting IP rights
15:02 | 28/04/2024 Import-Export