Vietnam's National Assembly is ready to create all favorable legal corridors for investment, production, and operations of domestic and foreign businesses, including European ones, Chairman of the Vietnamese highest legislative body Vuong Dinh Hue told a delegation of 50 European companies. 

He said at the meeting in Hanoi on February 14 that Vietnam will review the legal framework to facilitate the nation's energy transition and digital economy while reviewing several laws to facilitate the development of sandboxes for nationwide digital transformation.

The meeting between Vietnam's National Assembly chairman Vuong Dinh Hue and European and ASEAN businesses on February 14. Photo: National Assembly

The delegation includes representatives of the EU-ASEAN Business Council and the European Chamber of Commerce in Vietnam (EuroCham).

At the meeting, Hue called for European businesses to help drive digital transformation in Vietnam. 

Meanwhile, European companies said they are interested in the energy transition. Alain Cany, Chairman of the European Chamber of Commerce in Vietnam (EuroCham) said that green economy is one of the most important elements to determine the development of a nation in the modern world. 

He said that both sides can enhance cooperation to develop a green economy and EuroCham will support Vietnam in policy-making, compiling regulations, technology transfer and accessing financial resources.

A green economy and net zero emissions are among the key priorities that Vietnam wants to achieve to facilitate sustainable socio-economic growth in the future. At the 2021 United Nations Climate Change Conference (COP26), Vietnam pledged to achieve net zero emissions in 2050 and the nation has called for assistance from international communities to reach the said target.

At the meeting with Chairman Hue, European companies said that they hope to study Vietnam’s strategies for the green transition, renewable energy, offshore wind power development, and fulfillment of COP26 commitments.

They hoped to get to know well several policies in renewable energy, offshore wind power development, drug production, and the provision of modern healthcare services.

On his part, Chairman Hue affirmed that Vietnam hopes to collaborate with EU businesses on green finance and benefit-cost balance during the transition.

Expectations on further cooperation

Both Vietnam and the EU-ASEAN Business Council expected that bilateral trade and investment relations will grow stronger.

The EU-ASEAN Business Council’s vice president Jen Ruebbert said at the meeting that the upcoming ratification of the EU-Vietnam Investment Protection Agreement (EVIPA), alongside the EU-Vietnam Free Trade Agreement (EVFTA), will boost the partnership of the two sides. At present, 12 out of 27 EU members have ratified the EVIPA.

Both Cany and Ruebbert said European companies are very interested in the Vietnamese market, as they consider the country to be among the leading nations in Asia-Pacific, especially in Southeast Asia.

Vietnam has great potential for future growth and the nation could become a favorite destination for global investors, they said.

According to several business representatives, ASEAN member states are making strong efforts to develop digital solutions and facilitate rapid socio-economic growth.

In addition, Hue called for the EU-ASEAN Business Council and EuroCham Vietnam to promote the ratification by EU member states of EVIPA, and remove the partial penalty (yellow card) on Vietnamese aquatic exports.

"Vietnam takes the EU seriously as one of its major partners and hopes to boost its relationship with the bloc in the future," Hue said. He hoped that the EU-ASEAN Business Council will continue to build bridges between European and ASEAN investors and Vietnam.

"Vietnam is committed to further improve conditions for business and investment, increase competitiveness, productivity and efficiency of the economy," he emphasized.

The EU is the fifth largest trading partner, third biggest export market, and fifth largest investor in Vietnam, while the country is the largest ASEAN trading partner for the EU. Bilateral trade has seen strong growth in recent years, with a year-on-year increase of 9.8% in 2022 to reach US$62.4 billion.