Vietnam has been advised to remove a number of bottlenecks in a bid to further improve the local business climate and attract high-quality FDI inflows from Europe.

Dang Tuyet Vinh from the European Chamber of Commerce in Vietnam (EuroCham), revealed that the fourth wave of the COVID-19 pandemic which hit Vietnam last April had dealt a blow to European operations locally, causing Eurocham’s Business Climate Index (BCI) to drop to a record low level.

Despite this fall, Vinh pointed out that leaders of many European firms remained optimistic about the local trade and investment environment, particularly when the BCI rose to 61 points in January, representing a jump of 42 points since the third quarter of last year.

These positive signs can largely be attributed to the country’s rapid vaccination coverage coupled with the Government’s strong determination to gradually reopen the economy.

Alongside COVID-19 containment efforts, the EuroCham representative also highlighted the government’s efforts to improve the investment climate in recent times, a factor which has served to turn the country into an attractive destination for financiers.

Most notably, Vinh spoke highly of the various achievements obtained from the effective implementation of the Government’s Decree No.15 relating to food safety management which has helped the local food industry experience high growth, even during the pandemic.

In addition, with the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) and the impending EU-Vietnam Investment Protection Agreement (EVIPA), Vietnam will seize the opportunity to attract fresh waves of FDI from European investors, Vinh added.

The trade official went on to underline the need to resolve existing issues relating to infrastructure, human resources, the business environment, as well as simplifying administrative procedures and deploying institutional reforms to further attract FDI from Europe.

Source: VOV

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