(kontumtv.vn) – In the context of the global economy and politics continuing to fluctuate, Vietnam's position as an important link in the Southeast Asian region is increasingly consolidated. At the same time, despite global challenges such as inflationary pressures and political tensions affecting the supply chain, Vietnam's economy still maintains a sustainable growth rate.
The above is information in the Business Confidence Index (BCI) Report for the fourth quarter of 2024 in Vietnam announced by the European Chamber of Commerce in Vietnam (EuroCham Vietnam) on January 8.
Business confidence soars
The EuroCham BCI reached its highest level in more than two years, jumping 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, as well as demonstrating Vietnam's remarkable resilience in the face of global fluctuations and its emergence as a regional trade and investment hub.
Over the past two years, the BCI of EuroCham Vietnam has mostly fluctuated around the neutral level of 50, sometimes even falling below this threshold. However, the BCI report for the fourth quarter of 2024 marks an important turning point when it reached its highest level since the beginning of 2022. The survey results show that 42% of survey participants feel positive about the current business situation, while 47% expect business conditions to continue to be optimistic in the next quarter. More notably, 56% of survey participants forecast an improvement in Vietnam's macroeconomic outlook in the first quarter of 2025.
EuroCham Vietnam Chairman Bruno Jaspaert said that this marked increase in confidence reflects widespread recognition of Vietnam’s political and economic transformation over the past years. The BCI Q4/2024 report also shows that, despite global challenges, Vietnam’s positive investment environment is still creating many new opportunities for European businesses.
Explaining further the increase in the BCI, the EuroCham representative also pointed out that, thanks to many factors such as the economic reforms taking place in Vietnam and the country's central role in the global trend of sustainable development. In particular, many survey participants identified the "dual transformation" - the digital transformation and green transformation - as playing an important role in the positive assessments.
Furthermore, many businesses have embraced the new business trends and recorded strong growth, with some even 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 for European businesses.
Ideal investment destination
One of the most striking features of the BCI Q4/2024 is that 75% of survey respondents said they would recommend Vietnam as an ideal investment destination. This figure highlights the growing recognition of Vietnam’s strategic importance, especially with its strong growth rate and expanding infrastructure continuing to attract European businesses looking to expand their operations in the region. These include key sectors such as technology, manufacturing, tourism and renewable energy. This also shows that the growing confidence of European businesses in Vietnam as an attractive investment destination is a testament to its solid foundation in both trade and economic policy.
Mr. Thue Quist Thomasen, CEO of Decision Lab (the unit that conducts the BCI index of EuroCham Vietnam) shared that the BCI index survey in the fourth quarter of 2024 shows that European enterprises increasingly positively evaluate Vietnam as an attractive destination for foreign investment projects, as shown by the majority of enterprises that have planned to expand their operations in Vietnam such as considering cooperation with Vietnamese factories or service providers, increasing their presence... In addition, 30% of other enterprises plan to increase import and export activities, move production activities to Vietnam to take advantage of trade advantages... and these are moves in line with the trend of global trade shifts in the context of recent disruptions to global supply chains.
However, EuroCham Vietnam experts emphasized that while the overall situation is trending positively, operational challenges remain a concern for European businesses in Vietnam. Typically, the three biggest operational obstacles identified are administrative burden, unclear regulations, and difficulties in obtaining licenses.
Vietnam is facing an important turning point, with efforts such as the project to reorganize and streamline the organizational apparatus showing positive prospects to promote economic development, FDI growth and the country's golden age... Many businesses participating in the BCI index survey in the fourth quarter of 2024 expect that these reforms will bring about significant improvements in administrative procedures.
Another area where European businesses expect significant improvements is infrastructure, such as the North-South high-speed railway project, which is expected to have significant benefits for workforce mobility and logistics. The railway is also expected to significantly improve transport connectivity, reduce transport costs, increase supply chain efficiency, improve the overall business environment, and enhance connectivity for import and export flows.
In addition, the development of aviation and maritime infrastructure also plays a significant role. Typically, Long Thanh International Airport is expected to enhance the competitiveness of Vietnam’s logistics industry, while Hai Phong’s deep-water ports are contributing to the development of the country’s maritime economy…
Some experts also commented that Vietnam’s impressive economic recovery, as evidenced by the EuroCham BCI, signals a promising outlook for European businesses operating here. Despite operational challenges and global uncertainties, businesses remain optimistic about Vietnam’s growth potential, with many planning expansions and investing in long-term strategies.
As Vietnam continues to transform, opportunities for European businesses are clear. With the right policies, continued infrastructure upgrades, and an increasingly improved business environment, Vietnam can continue to attract investment and promote sustainable growth in the years to come.
Source: https://kontumtv.vn/tin-tuc/kinh-te/doanh-nghiep-chau-au-tin-tuong-vao-trien-vong-kinh-te-viet-nam
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