Vietnam is committed to accelerating GDP growth and establishing itself as a leading economic, trade, and investment center in Southeast Asia by 2030, Prime Minister Pham Minh Chinh affirmed, urging European enterprises to expand their operations and investments in the country.

Speaking at a roundtable discussion with major European corporations and businesses in Hanoi on Sunday, the PM highlighted the rapid and unpredictable global changes that present opportunities and challenges for many nations, including Vietnam.

He underscored the crucial role of European enterprises in Vietnam's economic progress and expressed gratitude for their contributions.

Official data shows that Vietnam’s GDP reached US$476.3 billion in 2024, reflecting a 7.09-percent year-on-year growth.

This resulted in an increase in GDP per capita to $4,700, up by $377 compared to 2023.

Looking ahead, Vietnam aims for at least eight-percent GDP growth in 2025, with an ambitious target of achieving double-digit growth in the following years.

These efforts align with the country’s goal of becoming a major regional economic hub by 2030 and a high-income developed nation by 2045.

The PM called on EU businesses to expand their operations in Vietnam, positioning the country as a key production and supply chain hub.

He reassured European investors of Vietnam’s commitment to fostering a stable and favorable business environment, ensuring the country remains a safe and profitable investment destination.

Bilateral trade between Vietnam and the European Union (EU) reached $68.5 billion in 2024, a 16-percent climb from the previous year.

The EU remains Vietnam’s fourth-largest trading partner and fifth-largest investor, with total cumulative investments amounting to approximately $30.4 billion, according to official data.

PM Chinh encouraged stronger collaboration between European businesses and their Vietnamese counterparts to enhance supply chain integration and market diversification while solidifying Vietnam’s role as a long-term production and business hub for the EU.

He urged European investors to increase high-quality investments, accelerate the transfer of advanced technologies, and support the development of a skilled workforce in Vietnam.

Key areas of focus include the green economy, digital economy, circular economy, creative economy, knowledge-based economy, and sharing economy, as well as new energy, financial center development, green finance, marine economy, biotechnology, and healthcare, according to the Vietnam News Agency.

PM Chinh also urged the European business community to advocate for the swift ratification of the EU-Vietnam Investment Protection Agreement by the nine remaining EU member states.

Additionally, he called for support in persuading the European Commission to lift the illegal, unreported, and unregulated fishing ‘yellow card’ warning imposed on Vietnamese seafood exports since 2017.

During the discussion, representatives of European enterprises commended Vietnam’s business and investment environment, highlighting recent regulatory reforms that have clarified and streamlined the legal framework for investors.

Bruno Jaspaert, chairman of the European Chamber of Commerce in Vietnam (EuroCham Vietnam), emphasized that investors seek stability and consistency in policies.

He compared Vietnam’s economic resilience to houses in the northern port city of Hai Phong that withstood the devastating super typhoon Yagi, which ravaged nothern Vietnam in September last year, underscoring the importance of a solid economic foundation.

Citing a survey in which 75 percent of European businesses recommended Vietnam as an investment destination, the EuroCham Vietnam leader suggested that the country strengthen its global promotional efforts to highlight not only its appeal as a tourist destination but also its potential as a business and investment hub.

Addressing concerns about taxation among European businesses, Deputy Prime Minister Ho Duc Phoc clarified that local governments in Vietnam are not authorized to impose taxes.

He assured investors that any unreasonable fees or charges set by local authorities would be reviewed and adjusted accordingly.

He also noted that Vietnam’s VAT stands at 10 percent, significantly lower than the 19-22 percent rates in many European countries.

Over the past five years, Vietnam has reduced VAT from 10 percent to eight percent for various goods, while its corporate income tax rate of 20 percent remains lower than the 25-35 percent rates in G20 countries.

In his closing remarks, PM Chinh acknowledged the valuable contributions of EU enterprises to Vietnam’s economy.

However, he pointed out that the current level of investment remains modest compared to the expectations and potentialities of both sides.

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