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FDI flows from the EU to Vietnam in the context of EVFTA and EVIPA

The research "FDI flows from the EU to Vietnam in the context of EVFTA and EVIPA" is carried out by the Vietnam Institute for Economic and Policy Research (VEPR), and funded by Konrad-Adenauer-Stiftung Vietnam

Up to now, Vietnam has 15 signed agreements, two other agreements are under negotiation. Among them, the EU-Vietnam Free Trade Agreement (EVFTA) is considered the most ambitious agreement that Vietnam has ever signed; at the same time, it is also the most ambitious FTA that the EU has ever signed with a developing country. Therefore, the EVFTA is expected to bring significant economic benefits to both sides, especially in trade and investment, thereby helping the two sides overcome the challenges of the current volatile world context

Since implementing the renovation ("Đổi mới") policy in 1986, Vietnam's economy has been deeply integrated into the world economy. The transition from a centrally-planned economy to a market economy and the promulgation of the Foreign Investment Law in 1987 helped Vietnam receive its first FDI projects in 1988. The foreign-invested economic sector has continuously developed during the past thirty years, becoming an important part of Vietnam's economy. Being aware of the important impacts of FDI from the EU on Vietnam, the research launched in this workshop focusses on FDI Flows from the EU to Vietnam in the Context of EVFTA and EVIPA, aiming to provide timely and appropriate policy adjustments to attract high-quality FDI from the EU to Vietnam.

The research objectives were:

       - Analyze and assess the current situation of the EU’s FDI in Vietnam.

       - Identify the opportunities and challenges of the new context of EVFTA implementation, EVIPA, and the EU’s new trade strategy for the FDI from EU to Vietnam

        - Draw the policy implications, in accordance with Resolution 50-NQ/TW of the Party in attracting high-quality FDI into Vietnam.

The full research in Vietnamese can be found here.