The global crisis had shaken both developed and developing economies, and Viet Nam had not emerged entirely unscathed, EuroCham said in a recent press release.

"But with export slowdowns expected on the nation’s key markets, falling prices for key commodities, and local market sentiment still fragile, we cannot pretend there is not the possibility of hard times ahead and it is crucial that the Government act to mitigate any further negative effects of the crisis on the domestic economy," Eurocham said.

EuroCham said it would be launching its first-ever book on trade next week, highlighting the strategies Viet Nam’s leading foreign investors believe the Government should take to stabilise and strengthen the Vietnamese economy as well as maximise the nation’s competitiveness as a destination for foreign investment.

EuroCham Chairman Alain Cany said that foreign investors’ confidence in Viet Nam had been underlined throughout 2008, with strong portfolio investment inflows and FDI hitting record levels of more than US$60 billion.

"However with investors around the world feeling the effects of the global slowdown, it is vital that Viet Nam acts now to ensure it maintains its competitive edge and continue to attract foreign investment and emerge even stronger as the world economy recovers," said Cany.

"EuroCham’s 2008 Trade Issues and Recommendations identifies the key policy changes Viet Nam’s leading European investors have identified as necessary for the nation to build on its strengths and continue its growth as a leading regional investment hub through these challenging times".

Featuring in-depth position papers making recommendations for the development of 13 key sectors, EuroCham’s 2008 Trade Issues and Recommendations book has been produced with assistance from the Asia-Invest Programme, an Eu initiative to enhance business co-operation between the EU member states and Asia.