UKVFTA said to be behind increasing flow of quality FDI to Vietnam

15 Sep '22

2 min read

Pic: Shutterstock

The UK-Vietnam Free Trade Agreement (UKVFTA) is being perceived to be behind the increasing flow of quality foreign direct investment (FDI) into Vietnam in sectors like green finance, renewable energy, hi-tech manufacturing, digital transformation, healthcare, education and climate change adaptation, beyond conventional sectors like manufacturing, processing and mining.

These new sectors are a priority for Vietnam as the country is striving to build a digital economy and promote green growth.

The United Kingdom was the 15th largest investor out of 139 countries and territories pouring capital into Vietnam, with total investment worth nearly $4.2 billion as of August 20. This accounted for around 1 per cent of the total FDI value into the country.

The United Kingdom invested in 25 new projects in August, bringing the total number of projects with UK investment to 478, according to a Vietnamese media report.

The multilateral trade policy department under Vietnam’s ministry of industry and trade also feels that domestic enterprises have great scope to enhance investment cooperation with and promote technology transfer from the United Kingdom.

They can also participate in the UK industrial and energy supply chain and export industrial products to the United Kingdom.

The department feels domestic enterprises must pay attention to technical requirements and UK hygiene and safety standards to prepare carefully in terms of business plans and product development to integrate with the UK’s supply chain network.

In addition, they also need to pay attention to regulations related to sustainable development such as labour and environment because the UK is very interested in those issues, the department added.

Fibre2Fashion News Desk (DS)

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