(PLVN) - Vietnam's economic prospects are the most trusted and expected by the European business community in Vietnam since the Covid-19 pandemic.
 |
| European businesses have high hopes for Vietnam's economic prospects. (Illustration photo: Hong Pha). |
(PLVN) - Vietnam's economic prospects are the most trusted and expected by the European business community in Vietnam since the Covid-19 pandemic.
Business confidence hits two-year high
According to a recently released report by the European Chamber of Commerce in Vietnam (EuroCham), the Business Confidence Index (BCI) in Vietnam reached its highest level in more than two years. Accordingly, the BCI skyrocketed from 46.3 in the fourth quarter of 2023 to 61.8 in the fourth quarter of 2024. “This result demonstrates Vietnam’s remarkable resilience in the face of global fluctuations, while affirming the region’s increasingly prominent position and marking an important turning point when the index reached its highest level since the beginning of 2022,” EuroCham commented.
According to the survey results, 42% of participating businesses said they feel positive about the current business situation, while 47% expect business conditions to remain optimistic in the next quarter. More notably, 56% of businesses forecast an improvement in Vietnam’s macroeconomic outlook in the first quarter of 2025.
“This is a clear sign that European businesses are increasingly confident in Vietnam’s economic prospects. This marked increase in confidence reflects widespread recognition of the country’s political and economic transformation over the past years. The country’s continued GDP growth further confirms Vietnam’s position as an important link in the trade and investment chain in Southeast Asia,” said Bruno Jaspaert, Chairman of EuroCham Vietnam.
According to EuroCham, the most striking point is that 75% of business leaders surveyed said they would recommend Vietnam as an ideal investment destination. This data highlights 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.
The survey results also show that the majority of businesses have plans to expand their operations in Vietnam, with 25% of businesses saying they are considering partnering with Vietnamese manufacturers or service providers, while more than 20% of businesses participating in the survey want to expand their presence in Vietnam. In addition, another 30% of businesses plan to increase import/export activities and/or move production to Vietnam to take advantage of the trade advantages that the country offers. This move is in line with the global trade shift trend, especially in the context of recent disruptions to global supply chains.
Expectations for institutional reform
According to EuroCham, the increase in business confidence can be explained by a number of factors, not least Vietnam’s ongoing economic reforms and the country’s central role in the global trend towards sustainable development. In particular, many businesses surveyed identified the “dual transformation” (including digital and green transformation) as playing an important role in their positive assessments. Businesses embracing these trends have recorded strong growth, with some reporting revenue growth of up to 40% compared to the previous 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.
“Despite global challenges, Vietnam’s positive investment environment is creating new opportunities for European companies, especially in key sectors such as technology, manufacturing, tourism and renewable energy. The growing confidence of European companies in Vietnam as an attractive investment destination is a testament to the country’s solid foundations in both trade and economic policy,” commented the EuroCham Chairman.
However, the latest BCI report also shows that the three biggest operational obstacles identified as administrative burden, unclear regulations and difficulties in obtaining licenses have not been significantly improved. However, the EuroCham Chairman said: “Vietnam is at an important turning point. These persistent administrative difficulties are challenging business operations, but we remain optimistic about the Government’s determination to create a more favorable environment. Efforts such as the project to reorganize and streamline the apparatus are showing positive prospects.”
Notably, Mr. Jaspaert expects: “Transparent, clear and effective legal processes will help the country develop strongly, improve trade and encourage investors to consider Vietnam as their new home. I believe that Vietnam is about to enter a golden age. The arrangement and streamlining of the Government apparatus is a huge and complex project, but the achievements such as a growing economy and attracting foreign investment will make all efforts extremely worthwhile.”
Source: https://baophapluat.vn/doanh-nghiep-chau-au-tin-tuong-trien-vong-kinh-te-viet-nam-post537247.html
Comment (0)