Vietnam:
Vietnam has experienced a radical economic and social transformation over the past two decades, alongside integration into the global economy. As a rapidly developing and fast growing economy, Vietnam holds substantial potential for EU businesses. The Association of Southeast Asian Nations (ASEAN) as a whole represents the EU’s 3rd largest trading partner outside of Europe (after the US and China). Of the 10 ASEAN members, Vietnam has become the EU’s second most important trading partner after Singapore. Negotiating better access for EU exporters to the dynamic ASEAN market is a priority for the EU.
Trade picture:
EU exports to Vietnam are dominated by high-tech products; including electrical machinery and equipment, aircraft, vehicles, and pharmaceutical products. Vietnam’s key export items to the EU include telephone sets, electronic products, footwear, textiles and clothing, coffee, rice, seafood and furniture.
The EU has a negative balance of trade in goods with Vietnam. In 2016, EU-Vietnam trade in goods was worth over €42.4 billion, with €33.1 billion in imports from Vietnam into the EU, €9.3 billion in exports from the EU to Vietnam. The EU is one of the largest foreign investors in Vietnam. In 2015, EU investors committed a total of USD $1.3 billion in FDI, reaching a total investment stock of USD$21.7 billion. The EU is Vietnam’s 5th largest foreign investor partner.
EU-Vietnam Trade Agreement
Vietnam has a current population of 95,124,019 (March, 2017) and a population of 98,156, 617 forecast for 2020. Nielsen estimates that the number of middle-class Vietnam will reach 44 million by 2020 and 95 million by 2030; thus increasing the potential consumer base exponentially.
Under the EU-Vietnam Free Trade Agreement, Irish companies will have the opportunity to explore opportunities in Southeast Asia. Read the full guide to the EU-Vietnam Free Trade Agreement here.
EU-Vietnam Business Network (EVBN)
Established in 2014, the EU-Vietnam Business Network (EVBN) is a project co-funded by the European Union. Its objective is to increase exports and investments of the EU to Vietnam and in particular by SMEs, as well as strengthening the EU business sector in Vietnam by facilitating market access.
For further information about market opportunities in Vietnam, contact Eimear.
