European technology investment in Vietnam: 2026 signals a new strategic phase
Vietnam is changing its investment policy. Instead of focusing on quantitatively oriented foreign direct investment, the country is now concentrating on qualitatively oriented strategic investments. Ecovis experts explain and comment on how regulatory authorities assess investments and how European companies can successfully enter the Vietnamese market.
Vietnam’s investment approval system has undergone a quiet but fundamental transformation. While headline legislation remains largely unchanged, investment evaluation has become more centralised, qualitative, and outcome-oriented, with increased coordination between central ministries and provincial authorities.
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From open access to strategic selection
Today, regulators assess not only legal compliance, but also:
- Technology relevance and modernity
- Environmental, social, and governance (ESG) credibility
- Digital governance and data responsibility
- Long-term contribution to local value chains
This shift is visible in sectoral data. As of 2025, processing and manufacturing account for 36.3% of EU FDI, while energy and utilities represent 20.7%, and information and communications 6.6% – underscoring Vietnam’s prioritisation of green and digital investment over labour-intensive expansion.
Increasing focus on European technology companies
European investors occupy a distinctive position in Vietnam’s strategy for three reasons:
- EVFTA maturity: Five years after coming into effect, the EU–Vietnam Free Trade Agreement has evolved into a trust framework. By Q3 2025, 61% of European firms cited tariff reductions as a key competitive advantage, compared to 29% in 2024. This reflects deeper operational integration rather than transactional trade.
- EU global gateway alignment: Vietnam is increasingly positioning itself as the EU’s global gateway hub in Southeast Asia, particularly in semiconductors, renewable energy, and digital infrastructure. EU experts are actively supporting Vietnam in revising its law on science and technology and aligning data governance with GDPR-like standards, especially for AI and cybersecurity projects.
- Higher implicit expectations: European firms are assumed to operate under advanced ESG, compliance, and AI governance regimes. As a result, they face higher scrutiny at the licensing and evaluation stage, particularly in terms of ESG substantiation and technology transfer.
We support you with investments and long-term positioning. Vietnam is now a compliance-sensitive, strategically selective market and no longer simply a cost-effective expansion location.
Vu Manh Quynh, Attorney-at-Law, Managing Partner, ECOVIS Vietnam Law, Ho Chi Minh City, Vietnam
The emerging risk: Silent project delays
A notable feature of Vietnam’s current system is the growing incidence of “silent licensing failure.” Rather than formal rejection, projects may remain under extended review or circulate between authorities due to strategic misalignment, not legal non-compliance. Common issues here include:
- Insufficiently defined technology contribution
- ESG commitments lacking operational detail
- Data or AI-driven models without clear governance safeguards
This reflects Vietnam’s evolving approach: filtering for credibility and alignment, not documentation volume.
2026 outlook: A narrow first-mover window
Looking ahead, 2026 represents a convergence point:
- Advanced EVFTA tariff phases
- Externalisation of EU regulations (CSDDD, CBAM)
- Vietnam’s targeted demand for “anchor” tech investors
Priority areas include semiconductors (testing and packaging under the EU Chips Act), green industrialisation (exemplified by the fully solar-powered USD 1.3 billion LEGO factory), and trust-based AI and cybersecurity ecosystems.
For European technology companies that enter Vietnam with proper strategic alignment, 2026 offers a first-mover advantage. For those relying on legacy entry models, delays and friction are increasingly likely.
