Vietnam’s Ambition: Becoming Europe’s Top Technology Partner, According to World Economic Forum

Vietnam has emerged as a top choice for technology investors thanks to Prime Minister Pham Minh Chinh's recent European business trip. The trip included his attendance at the 54th annual meeting of the World Economic Forum in Switzerland. This high-profile event has solidified Vietnam's position as a leading destination for investors interested in the technology sector.


Vietnam’s Emergence as a Leading Semiconductor Industry Hub

With more than 30 activities and discussions on subjects such as artificial intelligence, automotive industry, semiconductor chips, and ecosystems, Vietnam has showcased its potential to attract investments in these industries. The Prime Minister led these discussions at the WEF Davos 2024, emphasizing Vietnam’s bid to become a prominent player in these sectors.

“Europe is renowned for its expertise in the automobile, semiconductor chip, and artificial intelligence domains. Hence, Vietnam and the EU have the potential to forge a strong partnership for developing these industries,” stated Leif Schneider, Deputy Chairman of the Legal Committee at Eurocham, the Association of European Businesses in Vietnam.

Prime Minister Pham Minh Chinh speaking at the World Economic Forum. Photo: VGB/ Nhat Bac

Eurocham Vietnam representative highlighted the significant strides made in software development and economic growth in the country.

Collaborating with EU partners will help Vietnam achieve its goal of becoming the semiconductor industry hub in the ASEAN region.

“This is particularly significant as EU nations are striving to enhance their competitiveness vis-à-vis other leading Asian economies. Vietnam has the potential to become one of the EU’s key partners,” added Leif Schneider.

“Many European companies are looking to double their investments in Vietnam, indicating the vast cooperative potential between Vietnam and the EU. I strongly believe that bilateral trade will continue to surge and the EU’s investment in Vietnam will witness substantial growth in 2024,” said Leif Schneider.

Echoing Schneider’s view, Charaf Kadri, Managing Director of Sandoz Vietnam, remarked on the remarkable and dynamic growth Vietnam has witnessed over the past decade.

“Vietnam has become increasingly attractive as a preferred investment destination for foreign investors, especially in the era where artificial intelligence is recognized as a driving force for growth,” stated Charaf Kadri.

Prime Minister Pham Minh Chinh and Hungarian Prime Minister Viktor Orban attending the Vietnam-Hungary Business Forum. Photo: VGP/Nhat Bac

The EU is one of Vietnam’s largest foreign investors and ASEAN’s largest trading partner. The Vietnam-EU partnership will further boost investment flows from all 27 EU member countries to Vietnam.

Through his participation in the World Economic Forum, the Prime Minister has showcased Vietnam’s keen interest in global economic development. This highlights Vietnam’s potential as a crucial geopolitical partner and strengthens its position as a leading destination for international investors.

The increasing attention of global investors towards Vietnam is one of the notable outcomes of Prime Minister Pham Minh Chinh’s diplomatic trip.

EU’s Interest in Vietnam’s Economic Landscape

Prime Minister Pham Minh Chinh’s visits to Switzerland, Hungary, and Romania have played a pivotal role in strengthening the ties between Vietnam and the EU.

According to Leif Schneider, there exist diverse opportunities for economic cooperation between Vietnam and Romania, Hungary, and Switzerland. Vietnam’s strong relations with these three nations will also positively impact other European countries.

Switzerland, a European nation renowned for its economic prosperity and business reliability, serves as a role model for numerous countries in the region. Vietnam has emerged as a crucial link in the global supply chain diversification process.

Charaf Kadri emphasized the importance of the strong bond between Vietnam and Switzerland to foster an effective economic cooperation relationship.

“Swiss companies have a significant presence in Vietnam’s pharmaceutical and food sectors, logistics, and finance. Their involvement is driven by numerous innovation initiatives, continuous support in research and development, as well as sustainable partnerships with various stakeholders,” said Charaf Kadri.

During Prime Minister Pham Minh Chinh’s visit, 19 cooperation agreements were signed, setting the stage for enhanced collaboration in the future.

In the case of Hungary, both nations have established a comprehensive partnership. They have committed to increasing bilateral turnover to 2 billion USD.

Charlotte Pho