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developing modern technical infrastructure, especially new industries on the basis of
Industry 4.0.

5. Current situation of attracting FDI from the EU to Vietnam
Since the official establishment of diplomatic relations in November 1990, the
relationship between Vietnam and the EU has developed rapidly in both breadth and
depth; in which the EU has always been considered one of Vietnam's important trade
and investment partners. November 2020 marks 30 years of close diplomatic relations
between Vietnam and the EU, as well as 25 years of signing the Framework Agreement
on Bilateral Cooperation, in the context of the bilateral relationship achieving a
breakthrough when the Vietnam - European Union Free Trade Agreement (EVFTA)

officially took effect from August 1, 2020. This is one of the events of special
significance, contributing to deepening the relationship between the two sides,
especially in terms of economy and trade, opening up great opportunities for Vietnam
to increase FDI attraction from member countries of the European Union (EU). It can
be said that the good diplomatic relations over the past time are favorable conditions for
economic cooperation between the two sides, including investment cooperation.

Analyzing specific partners, it can be seen that the 6 largest investors, including
the Netherlands, France, Luxembourg, Germany, Denmark and Belgium, account for
more than 91% of the total EU FDI capital in Vietnam. As of August 2022, the
Netherlands is the largest EU investor, ranked 8th in the list of investors in Vietnam,
with 401 projects and 13.6 billion USD in registered capital, accounting for nearly 50%
of the total EU investment capital in Vietnam. France ranks 2nd with 658 projects, 3.71
billion USD, accounting for 13.5% of the total investment capital. Following are

Luxembourg (57 projects, 2.6 billion USD), Germany (431 projects, 2.31 billion USD),
Denmark (154 projects, 1.79 billion USD) and Belgium (82 projects, 1.1 billion USD).
Other EU partners have invested in Vietnam, but with a total cumulative registered
capital of no more than 500 million USD, accounting for a not really significant
proportion.
Chart 1. Registered capital in the period 2011 - 2021 and accumulated
capital up to August 2022 of six major EU partners in Vietnam
unit: million USD, %

Source: Synthesized based on data from the Ministry of Planning and Investment

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