VINACHEM

Prime Minister Pham Minh Chinh announced that Vietnam is undergoing a major structural reform, redrawing administrative boundaries to create larger economic zones.

Speaking with European businesses, Prime Minister Pham Minh Chinh emphasized that Vietnam is undergoing a structural revolution, reorganizing its government apparatus and administrative boundaries to create larger development spaces and enhance economic potential.

On March 2, Prime Minister Pham Minh Chinh chaired a dialogue with major European corporations and business leaders. Vietnam’s trade volume with the EU in 2024 reached $68 billion, marking a 16 percent increase from 2023. The EU remains Vietnam’s fourth-largest trading partner, its fifth-largest investor with cumulative investments exceeding $30 billion, and a leading provider of official development assistance (ODA), having allocated €210 million in aid between 2021 and 2024.

Julien Guerrier, Ambassador and Head of the EU Delegation to Vietnam, highlighted the strong confidence European businesses have in Vietnam’s potential. He noted that European investors are not only committed to their existing operations but are also eager to attract more investment into the country.

The ambassador praised Vietnam’s recent economic reforms, describing them as bold and impressive for establishing a clear, predictable legal framework for businesses. With 2025 marking the 35th anniversary of EU-Vietnam diplomatic relations, he emphasized that it presents a unique opportunity to elevate bilateral ties to new heights. Senior EU officials, including European Commission President Ursula von der Leyen, have prioritized plans to visit Vietnam.

Bruno Jaspaert, Chairman of EuroCham Vietnam, referred to Vietnam as his "second home" and reiterated that foreign investors value stability and consistency in government policies. A recent survey revealed that 75 percent of European businesses recommend Vietnam as an ideal investment destination. He urged Vietnam to intensify global promotion efforts, ensuring that the country is recognized not only as a top tourism hub but also as an attractive business and investment destination.

Prime Minister Pham Minh Chinh acknowledged that Vietnam-EU relations are stronger than ever after 35 years of diplomatic ties. He expressed appreciation for the investment, business activities, and development aid provided by European companies and institutions. However, he noted that current trade and investment figures still fall short of expectations, given the EU’s economic strength and Vietnam’s market potential.

Vietnam aims to achieve at least 8 percent GDP growth in 2025, with ambitions to sustain double-digit growth in the coming years. By 2030, Vietnam is striving to become a major economic, trade, and investment hub in Southeast Asia, ultimately achieving developed, high-income status by 2045.

The Prime Minister invited European businesses to take part in this transformation, emphasizing that Vietnam’s high-growth strategy must also be sustainable and mutually beneficial for businesses, citizens, and bilateral relations.

He assured investors that Vietnam will fully protect the rights and legitimate interests of foreign businesses, ensuring that foreign direct investment remains an integral part of the national economy.

He emphasized that Vietnam is undertaking a comprehensive transformation in governance by eliminating unnecessary bureaucratic steps, decentralizing decision-making, and streamlining administrative structures for greater efficiency and effectiveness. To foster new growth, the government is redrawing administrative boundaries to create larger development zones, promoting digital transformation, and simplifying business regulations to reduce costs and improve efficiency for both citizens and enterprises.

As part of these reforms, Vietnam is committed to cutting at least 30 percent of administrative procedures, reducing processing times by 30 percent, and lowering business costs by 30 percent while aligning with EU regulatory standards.

The Prime Minister encouraged European businesses to expand operations in Vietnam, particularly by investing in high-quality projects, transferring advanced technologies, and supporting workforce development in emerging industries.

He also called for stronger Vietnam-EU business ties, urging European companies to integrate Vietnamese businesses into their global supply chains, establishing Vietnam as a long-term regional production and investment hub.

Additionally, he urged EU businesses to assist in policy consulting and institutional development for the Vietnamese government. He reaffirmed that the government-business dialogue mechanism would be strengthened to ensure policy commitments translate into measurable outcomes.