EVFTA, EVIPA offer prospect of high quality FDI to Vietnam
The recent ratification of the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA) by the European Parliament is expected to create a change in the flow of foreign direct investment (FDI) from the EU into Vietnam.
The EU is now the fourth largest trade partner of Vietnam with over 2,200 valid projects and total registered capital of 24.67 billion USD, accounting for 7.6 percent of foreign direct investment (FDI) in Vietnam.
EU investors have made significant contribution to Vietnam’s economic growth. However, the investment flow from the EU to Vietnam has been unstable and not yet reached its potential.
Together with the CPTPP, the EVFTA and EVIPA will also open up a big chance for producers outside the EU. As such, Vietnam will become more attractive to investors.
The country will also continue to renovate its economic structure, improve institutions and the business environment, and facilitate foreign investments in Vietnam.
Economists said the EVFTA will help increase FDI from non-EU members into Vietnam, focusing on services and the production of high-quality goods./.