Vietnam – attractive destination for North European investors: official

Vietnam’s exports to the North European markets during the 2020-2022 period grow 14.7% each year. (Photo: VNA)

Hanoi (VNA) – Thanks to incentives underthe EU-Vietnam Free Trade Agreement (EVFTA), Vietnam has emerged as anappealing destination for enterprises from the European Union (EU) ingeneral and Northern Europe in particular, Vietnam’s Trade Counsellor in Swedenand Northern Europe Nguyen Thi Hoang Thuy has said.

Through the EVFTA, which has been put in place sinceAugust 1, 2020, Vietnam has also stepped up “on-spot export,” the official toldthe Vietnam News Agency (VNA)’s correspondents in Europe.

Given global economic uncertainties, the trade deal hashelped ease adverse impacts on the national economy, she said, noting that itwill, fore sure, prove effective in the long term.

Thuy cited statistics from NorthernEuropean countries showing Vietnam’s exports to the markets during the 2020-2022 period grew14.7% each year.

However, she said, the revenue has yet to meet expectationsas the countries import goods from Vietnam through others in Europe likeGermany, Belgium, the Netherlands, France and Poland.

The official suggested Vietnamese firms observe rulesof origin and other stringent environmental and technical regulations if they wantto benefit from tax incentives and gain a firm foothold in Northern Europe andthe EU at large.

She also pointed out that there have been no directflights, and cooperation in seaports and airports between Vietnam and NorthEuropean countries yet, which has hindered their trading.

According to the trade counselor, Vietnam isattractive to enterprises in the EU and Northern Europe thanks to its largemarket of 100 million people, growing middle class and young workforce, alongwith the government’s strong commitment to achieving net-zero emissions by 2050.

“Businesses from Northern Europe have begun to showinterest in investing in Vietnam, with Denmark emerging as a new investor,” shesaid, taking the example of Danish toy maker LEGO that invested over 1.3billion USD to build a factory in the Southeast Asian nation last year.

Danish toy maker LEGO invests over 1.3 billion USD to build a factory in Vietnam last year. (Photo: VNA)

Besides, the enterprises are tending to relocate toVietnam to optimise incentives from the EVFTA when they conduct exports to theEU, the official added.

Thuy affirmed that the Vietnamese Trade Office inSweden and Northern Europe always accompany businesses, helping them bring intofull play opportunities generated by the deal./.

VNA