Many foreign direct investment (FDI) businesses are taking the full brunt of the novel coronavirus outbreak (COVID-19) and they are in dire need of support from the government to weather the storm.

TNG Investment and Trading JSC (TNG) and Thanh Cong Textile Garment Investment JSC (TCM) are expected to benefit the most from the EU-Vietnam FTA (EVFTA), according to Bao Viet Securities.

E-commerce is one of the best solutions for woodwork enterprises to cope with the Covid-19 epidemic, which has led to a sharp fall in demand.

With the strides in opening its economy, Vietnam has improved its ranking to 105th on the 2020 Index of Economic Freedom by The Heritage Foundation.

Industrial real estate is believed to be the only segment which can continue to prosper in the current real estate market.

 Experts are optimistic about industrial property development prospects in Vietnam, given the country’s rapid integration and improving investment climate.

Vietnam is the second country in Southeast Asia, following Singapore, that has signed an FTA with the EU.

The Politburo has issued Resolution No.50/NQ-TW on August 20, 2019, outlining directions to perfect institutions and policies to improve foreign investment efficiency and cooperation until 2030.

The nation is expected to represent a safe choice for foreign investors in their capital shifting plans in the context of the novel coronavirus (COVID-19) epidemic which is currently spreading globally.

Vietnam should take advantage of being the second country in Southeast Asia to sign a free trade agreement with the EU to attract FDI from Europe.

Vietnam, with its young demographic, growing incomes and large population, is considered a hugely promising market for retailers.

Japanese retail giant Aeon is set to have 25 shopping malls across Vietnam by 2025, with a total investment worth US$2 billion, said Aeon Vietnam general director Iwamura Yasutsugu.

While COVID-19 will have a negative impact on Vietnam's economic growth in 2020, it will boost the relocation of manufacturing facilities from China to Vietnam.

More than 100 Japanese manufacturing and processing enterprises in Vietnam are facing a shortage of materials for production due to the Covid-19 outbreak, according to a survey on the impact of the epidemic on Japanese firms in Vietnam.

Due to the impact of the novel coronavirus epidemic, investment  promotion activities of localities and enterprises have been delayed, possibly impacting Vietnam’s efforts to attract foreign funding.

The local supporting industries have seen positive movements after Vietnam has more thoroughly embraced its diverse new-generation free trade agreements.

With ratification of the EU-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement, the floodgates are expected to open for a new wave of European investment into the Vietnamese market. 

There is cause for optimism among business leaders in Vietnam and beyond in terms of foreign direct investment flows in 2020, with geopolitical and health factors leading to companies to formulate a plan B for operations. 

As the coronavirus outbreak shows no sign of slowing down, supply chain leaders are urged to mitigate instant disruption and plan for their short- and long-term performance.

The following are some key points for those who do business with the EU to adopt a comprehensive view on the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA).