Vietnam among SE Asia's most attractive FDI destinations: British consul general

She shared these insights during an interview with Tuoi Tre (Youth) newspaper on Friday, on the sidelines of the 2025 Ba Ria - Vung Tau Province Investment Promotion Conference.

Smith highlighted the UK's strategic focus on foreign investment and the strengthening of global economic relations.

She noted that the Indo-Pacific is a high-growth area where Vietnam stands out as a trustworthy and ambitious partner.

With the UK-Vietnam Free Trade Agreement and both countries' membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), there are numerous opportunities to deepen this relationship.

By the end of the fourth quarter of 2024, bilateral trade between the UK and Vietnam reached £8.1 billion (approximately US$10.9 billion), indicating steady growth despite global uncertainties.

Regarding Vietnam's FDI attraction potential, Smith observed that Vietnam has solidified its status as a top FDI destination in Southeast Asia.

With key advantages including significant governmental reforms, a skilled workforce, and the effective implementation of trade agreements, Vietnam's economy remains resilient and open for business, even amid global challenges.

Regarding future UK investments in Vietnam, Smith stated that British investors are focusing on both manufacturing and services sectors.

UK enterprises are investing in renewable energy, advanced manufacturing, financial services, education, and healthcare.

In Ba Ria - Vung Tau, there is particular interest in clean energy, port infrastructure, freight services, and education.

In 2024, the UK's exports to Vietnam totaled £1.3 billion ($1.7 billion), with goods accounting for £871 million ($1.2 billion) and services comprising the remainder.

For measures Vietnam should take to attract more FDI, especially from the UK, Smith emphasized the importance of transparency and a skilled labor force.

Clarifying investment procedures through specific regulations and promoting environmental, social, and governance (ESG) standards will also help Vietnam shine.

Additionally, creating clear investment roadmaps and offering targeted incentives will further bolster investor confidence.

The UK has committed to supporting Vietnam in developing financial centers in Ho Chi Minh City and Da Nang, Smith stated.

Organizations like TheCityUK, along with longstanding financial institutions such as Standard Chartered, Dragon Capital, KPMG, and HSBC, have been advising the Vietnamese government on regulations and plans to realize the ambition of establishing financial hubs in these cities.

Investing in education and vocational training to develop a highly skilled workforce is also crucial. Besides, Vietnam's lifestyle and culture are attractive to high-profile foreign talent.

When asked about recommendations for Ba Ria - Vung Tau, Smith noted the province's distinct advantages, including deep-water ports, renewable energy resources, and proximity to major markets.

She advised provincial authorities to continue building investor trust through transparency, clarity, swift administrative procedures, and a strong focus on green growth and freight transportation.

Vietnam and the UK established diplomatic relations in 1973 and entered into a strategic partnership in 2010.