Vietnam increasingly attractive to investors: Austrian newspaper

VOV.VN - Die Presse, a German-language daily broadsheet newspaper based in the Australian capital of Vienna, ran an article on April 14 highlighting favourable conditions that make Vietnam increasingly attractive to foreign investors.

The publication also stressed that the official visit to Vietnam by Austrian Federal Minister for European and International Affairs Alexander Schallenberg from April 16 to April 18 will help promote Austria's co-operation with the nation and the region as a whole.

According to the article, thanks to solid growth, trade agreements, and favourable investment conditions, the country is increasingly attractive to foreign businesses who are seeking to diversify their supply chains.

As a regional growth engine, since the beginning of this millennium the nation has consistently achieved an average Gross Domestic Product (GDP) of 6.2%, thereby making it one of the highest growth rates in Asia.

The country also overcame the COVID-19 pandemic without a recession, even last year it recorded growth of over 8%, making it the highest growth rate in more than 10 years.

The article cited a report from the Pacific Basin Economic Council (PBEC) which noted that the Vietnamese market has recently become increasingly attractive to foreign investors as companies move their production to the country. 

According to the article, export control measures and economic sanctions in the trade war, difficulties related to the supply chain, as well as unpredictable consequences of the COVID-19 pandemic have forced businesses to consider diversifying their supply chains. Besides, lower production costs in the nation are also attractive to investors.

Most notably, many foreign enterprises, including Austrian firms, have been forced to find new markets after withdrawing from Russia due to the conflict in Ukraine. In this context, Vietnam has emerged as an attractive destination for investors.

According to Dietmar Schwank, commercial counsellor of the Trade Office of the Austrian Embassy in Vietnam, companies that are doing business in China will still keep their locations there, but due to their geopolitical mindset they tend to seek new investment destinations rather than concentrating on just one country.

The article mentions that over the past decade Vietnam has transformed itself from an agricultural product, footwear, and garment exporter to an electronic component and computer equipment manufacturer. This is partly related to Samsung Electronics as half of the Korean company's mobile phones are manufactured in Vietnam and account for one-fifth of total Vietnamese exports.

The country's participation to free trade agreements (FTAs), including the EU-Vietnam Free Trade Agreement (EVFTA), also makes it different from other ASEAN member states.

According to Schwank, this is special because so far, the EU has not signed an FTA with any other emerging countries. 

These trade agreements provide security for companies looking to find other reference markets, he said.

The article assessed that the visit to Vietnam by Austrian Federal Minister for European and International Affairs Alexander Schallenberg and a business delegation led by Vice President of the Austrian Federal Economic Chamber (WKÖ) Philipp Gady will contribute to boosting Austria's export-driven economy. 

According to Minister Schallenberg, the Austrian Federal Ministry of European and International Affairs will take the lead and support Austrian exports to Vietnam, a move which will contribute to consolidating and diversifying Austria's relations with the region. 

Meanwhile, WKÖ sees many opportunities for Australian businesses in Vietnam, especially in terms of industrial products.

According to Gady, Austria can support the development of the Vietnamese supply chain, such as machines for plastic processing, recycling, or wood processing.

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