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Vietnam business environment appreciated by EU investors

Fri, 05 Dec 2014. Last updated Fri, 24 Apr 2015 23:17

Vietnam business environment has been improved and become more attractive to European investors. In details, business environment index increased from 66 points to 74 points in the third quarter of this year.

This information is published in White Paper on the issue of trade and investment. White Paper is issued by European Chamber of Commerce in Hanoi. The score is calculated after EuroCham interviewed and conducted a survey with the attendance of more than 800 EU enterprises investing in Vietnam. These enterprises were asked to score environment enterprise in Vietnam in different items. Explaining for the fact that the score of Vietnam environment enterprise are higher than before, Ms. Nicola Connolly - Chairman of EuroCham said that European investors were no longer worried about inflation in the country.

 

Vietnam Business Environment Index

 

In November 2014, Vietnam inflation index decreased 0.27% compared with the previous month. Besides, administrative reforms also play an important role in improving the country's business environment. Also, it will be a mistake without mentioning the possibility of foreigners in Vietnam owning their real estate is also a positive factor which make EU investor putting their trust in a better economic environment of the country. And what's more, EU investors expected that prospect of negotiating Free Trade Agreement (FTA) between Vietnam and EU will help to remove some types of tax. Accordingly, the reduction and abolition of tariffs through negotiations will help the volume of Vietnam's export to EU market growing from 30% to 40% and the volume of Vietnam's import from EU market increasing from 25% to 30%.

The White Paper is also a petition in which many suggestions are recommended by EU enterprises in 12 fields such as car, electricity, pharmaceutical products, consumer goods, and so on. Besides, EuroCham also suggested that Vietnam should exempt from visa requirements for more countries to increase the number of tourists. In a report, Vietnam can rise the number of travelers visiting the country from 8% to 18% if implementing Visa supporting program. With the current Visa policy, the number of visitors from Northern European traveling to Vietnam in 2013 negative grew in comparison the previous year.

 

Vietnam appeals foreign investment

 

EU Head of EuroCham delegation Franz Jessen expected that the White Paper would help Vietnam Government understanding about the recommendation of EU business community, thereby, it will help to improve Vietnam business environment in the future. Nowadays, EU is the second largest trade partner of Vietnam with the total value of trade in 2013 of 24.2 billion USD. EU is now the largest export market of Vietnam with the turnover up tp 21 billion USD, increasing 28% compared to the previous year and accounting for 19% of the total export turnover. EU is also one of the largest investment partner in Vietnam with 1,810 projects of foreign direct investment in 2013. EU committed to supporting Vietnam 400 million USD in 6 coming years.

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