Vietnam is attractive to enterprises in the EU and Northern Europe thanks to its large market of 100 million people, growing middle class and young workforce.

Thanks to incentives under the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam has emerged as an appealing destination for enterprises from the European Union (EU) in general and Northern Europe in particular, Vietnam’s Trade Counsellor in Sweden and Northern Europe Nguyen Thi Hoang Thuy has said.

Through the EVFTA, which has been put in place since August 1, 2020, Vietnam has also stepped up “on-spot export,” the official told the Vietnam News Agency (VNA)’s correspondents in Europe.

Given global economic uncertainties, the trade deal has helped ease adverse impacts on the national economy, she said, noting that it will, fore sure, prove effective in the long term.

Thuy cited statistics from Northern European countries showing Vietnam’s exports to the markets during the 2020-2022 period grew 14.7% each year.

However, she said, the revenue has yet to meet expectations as the countries import goods from Vietnam through others in Europe like Germany, Belgium, the Netherlands, France and Poland.

The official suggested Vietnamese firms observe rules of origin and other stringent environmental and technical regulations if they want to benefit from tax incentives and gain a firm foothold in Northern Europe and the EU at large.

She also pointed out that there have been no direct flights, and cooperation in seaports and airports between Vietnam and North European countries yet, which has hindered their trading.

According to the trade counselor, Vietnam is attractive to enterprises in the EU and Northern Europe thanks to its large market of 100 million people, growing middle class and young workforce, along with the government’s strong commitment to achieving net-zero emissions by 2050.

“Businesses from Northern Europe have begun to show interest in investing in Vietnam, with Denmark emerging as a new investor,” she said, taking the example of Danish toy maker LEGO that invested over 1.3 billion USD to build a factory in the Southeast Asian nation last year.

Besides, the enterprises are tending to relocate to Vietnam to optimise incentives from the EVFTA when they conduct exports to the EU, the official added.

Thuy affirmed that the Vietnamese Trade Office in Sweden and Northern Europe always accompany businesses, helping them bring into full play opportunities generated by the deal.