After two years of hovering around the neutral level of 50, the European Business Confidence Index (BCI) marked an important turning point when it rose to 61.8 in the fourth quarter of 2024.
75% of European business leaders said they would recommend Vietnam as a strategic investment destination. - Photo: QUANG DINH
According to the latest report from the European Chamber of Commerce in Vietnam (EuroCham Vietnam), the Business Confidence Index (BCI) has skyrocketed from 46.3 in Q4-2023 to 61.8 in Q4-2024.
This result reflects the European business community's optimism about Vietnam's economic prospects, and demonstrates Vietnam's remarkable resilience in the face of global turmoil.
Specifically, the survey results showed that 42% of participants expressed that they feel positive about the current business situation, while 47% expect business conditions to continue to be optimistic in the next quarter.
More notably, 56% forecast an improvement in Vietnam's macroeconomic outlook in the first quarter of 2025.
The increase in business confidence can be explained by many factors, especially the economic reforms underway in Vietnam and the country's central role in the global trend towards sustainable development.
Many businesses participating in the survey identified “dual transformation” – digital transformation and green transformation – as playing an important role in their positive assessments.
Businesses that have embraced these trends have seen strong growth, with some even reporting revenue growth of up to 40% year-over-year.
The sustainability trend, driven by both Vietnamese government policies and international green standards, is becoming an important factor in shaping business strategies across many sectors.
Most notably, 75% of the survey respondents said they would recommend Vietnam as an ideal investment destination. This data underscores the growing recognition of Vietnam’s strategic importance as an investment hub in Southeast Asia.
With strong growth and expanding infrastructure, Vietnam has continued to affirm its position as an attractive destination for European businesses looking to expand their operations in the region.
Despite many positive signs, businesses still face challenges such as complicated administrative procedures, unclear regulations and difficulties in obtaining licenses. EuroCham said it is ready to continue to cooperate with the Government to remove these barriers.
In addition, infrastructure improvements such as the North-South high-speed railway and Long Thanh international airport will support logistics and improve business efficiency.
The BCI shows that despite global uncertainties, European business confidence in Vietnam is growing strongly, opening up many opportunities for future development and investment. “This is a clear sign that European businesses are increasingly confident in Vietnam’s economic prospects,” said Bruno Jaspaert, Chairman of EuroCham Vietnam.
This marked increase in confidence reflects widespread recognition of the country's political and economic transformation over the years, he added.
The growing confidence of European businesses in Vietnam as an attractive investment destination is a testament to the country's solid foundations in both trade and economic policy."
Challenges to overcome
Despite the overall positive trend, operational challenges remain a concern for European businesses in Vietnam.
As in previous BCI reports, the three biggest operational obstacles identified were administrative burden, unclear regulations, and difficulty in obtaining permits.
42% of businesses said visa requirements for foreign experts are the biggest barrier. This makes it difficult to recruit and retain high-quality human resources from abroad.
Tax-related issues, including VAT refunds, were also noted by 30% of businesses, along with other challenges related to import-export procedures and investment registration.
Source: https://tuoitre.vn/chi-so-niem-tin-doanh-nghiep-chau-au-o-viet-nam-cham-dinh-hai-nam-20250108160031472.htm
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