From renewable energy to digital technology, the European Union (EU) is positioning Vietnam as a new investment hub in Asia.
The French Chamber of Commerce and Industry in Vietnam (CCIFV) stated that the EU has placed Vietnam at the center of its Global Gateway strategy — a policy aimed at mobilizing capital for green, digital, and globally connected infrastructure. This strategic shift is not only diplomatic but has been demonstrated through concrete projects and substantial capital flows.
According to the General Statistics Office, FDI inflows into Vietnam have maintained growth momentum this year, reaching over USD 28.5 billion in the first nine months — up more than 15% year-on-year. Among 82 economies with new projects, the EU ranks among the top 10 investors, holding the sixth position, after South Korea, Japan, Singapore, Taiwan, and Hong Kong.
European investment in Vietnam surged between 2010 and 2019, slowed due to COVID-19, and has recovered since 2022 with larger-scale projects. As of last year, the EU had about 2,450 projects in Vietnam with a total registered capital exceeding USD 30.6 billion, of which the Netherlands, France, Luxembourg, and Germany accounted for more than USD 20 billion. These investments focus primarily on technology, services, and high value-added industries.
Recent projects highlight the growing trend of “greening” and “digitalizing” European investment in Vietnam. The EU has committed EUR 430 million to the Bac Ai Pumped Storage Hydropower Project, part of the Just Energy Transition Partnership (JETP). Scheduled for operation in 2029 with a capacity of 1,200 MW, the project will both provide clean electricity and create thousands of jobs.
In the former Binh Dinh province, SYRE Impact AB (Sweden) is investing USD 1 billion to build an integrated polyester production and recycling complex with a capacity of 100,000–250,000 tons of PET pellets per year. This is a pioneering circular economy model in the textile industry, contributing to the goal of achieving net-zero emissions by 2050.
In the field of digital transformation and high technology, European investors are also showing strong interest. In April, LEGO (Denmark) inaugurated its second factory in Asia, located in Vietnam, with an investment of over USD 1 billion, powered entirely by renewable energy — symbolizing a new wave of high-tech European investment.
The EU is also expanding cooperation with Vietnam in education, science, technology, and innovation. Starting in 2024, the EU has supported Vietnam in assessing AI Ethical Readiness using UNESCO’s methodology. The results — including a toolkit for judicial agencies on ethics and human rights in AI applications — will be presented at the ASEAN Ministers’ Meeting on October 27 in Ninh Binh.
Additionally, the EU has launched a EUR 50 million vocational education project on green and digital skills, implemented by GIZ (Germany) and Expertise France (France), aiming to train workers for key industries such as semiconductors. Through the TAIEX mechanism, EU experts from Finland and Estonia have supported Vietnam in revising its Law on Science, Technology, Innovation, and Digital Transformation, approved by the National Assembly in June. After Typhoon Matmo, the EU activated the ECHO Copernicus emergency satellite mapping system to support disaster assessment and response.
EU Ambassador to Vietnam Julien Guerrier stated that Vietnam has the potential to become a regional hub for connectivity, AI, and cybersecurity. He emphasized that the Global Gateway strategy stands out by promoting investment in high-quality infrastructure that adheres to social and environmental standards. “Vietnam is an ideal partner because it shares the EU’s vision for green growth and an inclusive digital economy,” he said.
The EU views Vietnam as a crucial link in the Southeast Asian digital value chain, thanks to its tech-savvy workforce, open policies, and strategic geographical location. The goal is not only to invest but also to help Vietnam align its data governance framework with European standards (similar to GDPR), strengthening trust and consumer protection in the digital economy.
In the context of deepening digital cooperation, on October 21, Ho Chi Minh City will host a meeting between Vietnamese enterprises and European corporations, investment funds, and data and semiconductor solution providers, aimed at fostering investment connections, innovation, and sustainable growth.
According to EuroCham, the Business Confidence Index (BCI) for Q3 reached 66.5 points, the highest in three years, though 65% of enterprises still reported challenges related to administrative procedures and inconsistent policies across localities.
Experts suggest that Vietnam needs to accelerate reforms, improve data, renewable energy, and sustainable transport infrastructure, and develop digital human resources, especially in semiconductors and AI.
EuroCham concluded that if Vietnam continues to improve its investment environment and transparency, it could become the EU’s strategic technology partner in Asia — a convergence point for capital, knowledge, and innovation, opening a new phase of “green and digital synergy” between the two economies.
