- June 10, 2022
- Posted by: GBS
- Category: Economics
Vietnam’s active economic performance in recent years has captured the attention of some major European firms,
The German news site DW reported that, Vietnam was one of the few Asian countries that did not experience an economic contraction during the coronavirus pandemic in 2020 and 2021, it said. This year, the country’s GDP is expected to grow by around 5.5 percent.
About 60 per cent of European companies working in ASEAN say Vietnam offers the best expansion opportunities in the region, according to a survey conducted by Standard Chartered Bank.
German automotive supplier Brose, which has 11 factories in China, is currently deciding between Thailand and Vietnam for a new production location.
In December, Denmark’s Lego announced it will build a 1 billion USD factory near the southern business hub of Ho Chi Minh City, one of the largest European investment projects in Vietnam to date.
“It currently looks as if, in particular, medium-sized companies are increasingly striving to enter the Vietnam market.” Daniel Müller, manager at the German Asia-Pacific Business Association said.
Vietnam has become a more attractive destination for investors, the country is outperforming its regional partners in the eyes of European companies in ASEAN, Sophie Dao, Partner at GBS told Vietnam Insider.
The EU and Vietnam ratified a free-trade agreement in 2020, which included an investment pact, the EU-Vietnam Investment Protection Agreement (EVIPA). Bilateral trade rose to 49 billion EUR (52.08 billion USD) in 2021, up from 20.8 billion in 2012, the year talks began over the EU-Vietnam Free Trade Agreement (EVFTA).
A report by Germany Trade & Invest, a research and advisory platform, points out that these pacts also give European firms easier access to public procurements in Vietnam.