Unlocking high-quality investment from Europe
VOV.VN - Efforts to attract European investment are being stepped up, with expectations that high-quality capital flows from Europe will increasingly find their way into Vietnam.
New progress
Before engaging with global corporations at the 55th Annual Meeting of the World Economic Forum (WEF Davos 55) and conducting bilateral activities in Switzerland, Prime Minister Pham Minh Chinh met with major businesses from the Czech Republic and Poland, the first stops in his European tour at the start of 2025.
Both economies are currently modest investors in Vietnam. As of the end of 2024, the Czech Republic had 41 investment projects in Vietnam, with a total registered capital exceeding US$91 million. Meanwhile, Poland had 33 projects, with a total registered capital of nearly US$474 million. The modest figures do not reflect the potential and advantages of both sides.
However, recent developments indicate positive trends. During his meeting with PM Pham Minh Chinh in Prague, Klaus Zellmer, Chairman of the Board of Management of Skoda Auto, the biggest automobile manufacturer in the Czech Republic, stated that Skoda and Vietnam’s Thanh Cong Group are collaborating on the production and business of automobile products in Vietnam.
According to Klaus Zellmer, Skoda and Thanh Cong are completing the construction of Skoda's first automobile manufacturing and assembly plant in Southeast Asia, located in Quang Ninh, with an investment of US$500 million. The facility is expected to be completed in Q1, with two CKD models—Kushaq and Slavia—slated for market launch in 2025.
"Vietnam boasts the potential to become a production and export hub for Skoda cars in the ASEAN region and beyond," Zellmer said, adding that Vietnam is a crucial "gateway" for Skoda to access the ASEAN market.
Meanwhile, Pavel Tykac, owner of global investment group Sev.en Global Investments, revealed during his meeting with PM Pham Minh Chinh that the group is awaiting final approval to finalize its acquisition of shares in Mong Duong 2 Thermal Power Plant.
Sev.en signed an agreement to purchase a 51% stake in Mong Duong 2 in late 2023 and announced the acquisition of an additional 19% in August 2024, raising its total ownership to 70%. While the transaction value remains undisclosed, it is undoubtedly significant, as Mong Duong 2, jointly owned by AES Group (USA, 51%), Posco Energy (The Republic of Korea, 30%), and China Investment Corporation (CIC, 19%), was built with an investment of US$2 billion and has been operational since 2015.
Beyond these two corporations, other Czech and Polish groups have also expressed interest in Vietnam. Jiri Smejc, CEO of the multinational conglomerate PPF, which operates in Vietnam under the Home Credit brand, highlighted Vietnam's importance to PPF. PPF is currently planning to sell its 100% stake in Home Credit to Thailand's Siam Bank.
Similarly, Adamed Pharmaceuticals, which operates a factory and R&D center in the southern province of Binh Duong, has showed intentions to expand its investment in Vietnam, pledging to produce high-quality pharmaceuticals for both domestic consumption and exports.
European investment attraction
The Party Central Committee’s Resolution No. 50-NQ/TW on improving foreign investment policies and strategies for 2021-2030 aims to attract high-quality capital from the US and Europe. While some progress has been made, as seen in large-scale projects like LEGO’s US$1 billion venture, European investments in Vietnam remain below expectations.
A positive sign, however, is the continued confidence of European investors in Vietnam. The Business Confidence Index (BCI), published by EuroCham in early January 2025, saw a significant jump to 61.8 points in Q4 last year after hovering around 50 points for two years. This demonstrates European businesses' optimism about Vietnam's economic outlook and its remarkable resilience amid global challenges.
A notable finding from EuroCham's survey is that 75% of European business leaders said they would recommend Vietnam as an ideal investment destination. This is understandable, given Vietnam's growing recognition as a strategic hub for investment in Southeast Asia.
Despite global turbulence, the BCI indicates a surge in European business confidence in Vietnam, signaling substantial development and investment opportunities. This is a clear sign that European businesses are increasingly optimistic about Vietnam’s economic prospects, said Bruno Jaspaert, EuroCham Vietnam Chairman.
While the outlook is promising, the survey also highlighted concerns over administrative burdens, unclear regulations, challenges in obtaining permits, including visas for foreign experts and difficulties related to import-export and investment registration procedures. Addressing these issues is key to unlocking European investment flows. Additionally, once the EU-Vietnam Investment Protection Agreement (EVIPA) is ratified, it will further facilitate European investment.
During PM Pham Minh Chinh’s European tour, Vietnam and the Czech Republic elevated their relations to a strategic partnership. Czech President Petr Pavel pledged to encourage remaining EU countries to promptly ratify the EVIPA—a positive move to ramp up Vietnam-Europe investment cooperation.
