Why more European investors are choosing Viet Nam
VGP - Viet Nam was one of the few Asian economies that did not experience an economic contraction during the COVID-19 pandemic in 2020 and 2021.
The Southeast Asian country's GDP expanded 2.91 percent and 2.58 percent in 2020 and 2021, respectively, and is expected to grow 5.5 percent this year.
The International Monetary Fund predicted that Vietnam's GDP will reach US$571.1 billion by 2025, surpassing the Philippines and Singapore to become the third-largest economy in Southeast Asia.
Thanks to the fast vaccination rate, the Government decided to fully reopen borders to foreign tourists and revive economic activities from March 15, 2022.
Viet Nam's economic performance during and after the pandemic has captured the attention of some major European firms, according to The Indian Express.
A recently released AHK World Business Outlook Index 2022 showed that almost 93 percent of German companies operating in Viet Nam would continue investing in the country, and more than 46 percent plan to recruit more employees in the coming year.
The surveyed businesses also said that the most important factors for their trade and investment decisions in Viet Nam are political stability, availability of skilled workers in technical and non-technical fields, and transport and logistics.
Among the 10 ASEAN member states, Viet Nam is one of the four countries participating in the CPTPP, and together with Singapore, it is the only two countries with a free trade agreement with the EU so far, said the Chief Representative of AHK Viet Nam Marko Walde.
More importantly, the advantage with Viet Nam as a production base also lies in the fact that German and European enterprises could set up enterprises with 100 percent-foreign capital, hardworking and inquisitive workers, as well as the close economic, social, and cultural connections between the two countries.
In December last year, Denmark LEGO Group announced it would announce a US$1 billion factory in the southern industrial hub of Binh Duong, making it one of the largest European investment projects in Viet Nam to date, which indicates the Group's confidence in Viet Nam's business environment.
The construction of the factory is set to take place in November this year and production are due to start in 2024, LEGO Chief Operations Officer Carsten Rasmussen told Standing Deputy Prime Minister Pham Binh Minh last May.
In addition, German automotive supplier Brose is currently deciding between Thailand and Viet Nam for a new production location, reported The Indian Express.
Viet Nam has sailed through the hardest time of the pandemic with positive GDP growth to continue with its consistent cause of extensive international integration. This offers chances for European investors to consider investment decisions in the country./.
**Source: Government News