On 24 July 2025, EuroCham Vietnam had the honour to welcome delegates from the European External Acts Service (EEAS) to our office in Ho Chi Minh city to discuss European investment climate in Vietnam, opportunities and barriers for investment, advancements in semi-conductor industry, and green investment.
Distinguished guests included:
- H.E. Julien Guerrier, Ambassador of the European Union to Vietnam
- Ms. Paola Pampaloni, Deputy Managing Director for Asia and the Pacific, EEAS
- Ms. Leila Fernandez Stembridge, Head of Southeast Asia Division, EEAS
- Ms. Michaela Dodini, Business and Human Rights Specialist, EEAS
- Ms. Nga Nguyen Political Officer, EU Delegation to Vietnam
- Mr. Alexis Gregoire, Trainee, EEAS, EU Delegation to Vietnam
Representing EuroCham Vietnam were:
- Mr. Jean-Jacques Bouflet, Vice Chairman in charge of Advocacy
- Ms. Delphine Rousselet, Executive Director
- Ms. Diep Truong, Advocacy Manager
- Ms. Nora Bihari, Head of Projects
Please refer to key discussion points below:
European Investment Climate in Vietnam
Vietnam remains an attractive investment destination for European investors thanks to its strategic regional role and growth potential. Key sectors that draw the interest of European investors include textiles, agri-food, and pharmaceuticals. However, the discussion also noted how the recent amendment to the Special Consumption Tax (SCT) Law adopted in June 2025 has nullified the benefits of the EVFTA for automotive and wine & spirits industries and emerged as a challenge in Vietnam’s investment landscape.
Opportunities and Barriers
EuroCham shared the updates on Vietnam’s administrative boundary reforms from central to local levels and highlighted how this transformation aims to improve administrative efficiency. Both parties also noted remaining challenges for new foreign investors, including overlapping licenses, complex sub-licensing procedures, unclear regulations, and inconsistencies between central and local authorities.
Addressing trade and tariff issues, EEAS and EuroCham highlighted transhipment concerns in the context of U.S. Tariffs on Vietnam, which could undermine the value of Vietnam’s value chain. As many of the US’s exports to Vietnam will enjoy a 0% duty rate, this may pose a competitive challenge for EU products. As EU Trade Commissioner Sefcovic planned to visit Vietnam this September, EuroCham suggested he could raise this issue to accelerate achievement of 0% duty rate for EU products, which currently would take 8-10 years.
The lack of skilled labour force in Vietnam is raised as another challenge, and EuroCham suggested that EU investment in Vietnam should allocate funding for workforce development and capacity building.
Advancing the Semi-Conductor Industry
EU investors are increasingly interested in the semi-conductor sector in Vietnam. Even though challenges remain (lack of EU investor presence, long time expected to develop a competitive ecosystem, and need for long-term policy consistency), EuroCham’s Digital Sector Committee is actively promoting semiconductor-related collaboration.
Green Investment and Innovation
The EEAS delegation shared that the EU maintains strong interest in investing in renewable energy, sustainability, and green technology transfer. EuroCham shared that we would host the Green Economy Forum (GEF) on 27 November 2025 in Hanoi, which is a trusted platform for public-private dialogue for advancing green growth in Vietnam. EuroCham invited the EU Commission, EU Delegation, and European businesses to join our upcoming GEF.
EuroCham Vietnam would like to express our sincere gratitude to the EEAS and EU Delegation in Vietnam for the insightful discussion. We remain committed to bridging EU investors to the Vietnam’s business environment.
