Tensions with China Drive Investors Towards Vietnam

HO CHI MINH CITY, Apr 3 2024 (IPS) - In recent months, several European representatives embarked on trade missions to Vietnam. German President Steinmeier visited Hanoi in January. The Netherlands sent Prime Minister Mark Rutte, with the Dutch royal couple, King Willem-Alexander and Queen Máxima, soon to follow suit. Notably, the Netherlands stands as the most significant European investor in Vietnam.

Additionally, official delegations from the US and China have engaged in discussions with Vietnam regarding economic cooperation.

According to the Vietnamese Ministry of Planning and Investment, the country attracted nearly US$36.61 billion of Foreign Direct Investment (FDI) in 2023, marking a notable increase of over 32 percent compared to the previous year.

What factors contribute to this success? Vietnam, having emerged from a tumultuous history that included a war with the United States until the 1970s and continuing under communist leadership, has made significant strides. European entrepreneurs share their experiences in this thriving Southeast Asian nation.