The latest Business Confidence Index (BCI) conducted by Decision Lab reached 46.3 in the fourth quarter of 2023. This shows that the confidence of European businesses operating in Vietnam is showing signs of recovery. At the same time, many businesses ranked Vietnam in the top 10 global investment destinations.
The final quarter of 2023 saw a marked increase in business satisfaction, with businesses feeling confident about their current situation rising from 24% in Q3 2023 to 32% in Q4 2023. The outlook for Q1 2024 was also positive, with 29% of businesses rating their outlook as excellent or good, a further sign of concern easing from 9% to 5%.
European businesses rank Vietnam among top 10 global investment destinations
In addition, 31% of companies plan to expand their workforce in the new year and 34% intend to increase their investment level, a clear increase since 2023. These statistics signal strong growth momentum and opportunities for Vietnam in 2024.
Notably, in Q4/2023, Vietnam’s position as an investment hotspot increased significantly. An impressive 62% of respondents ranked Vietnam among the top 10 global investment destinations, with 17% ranking Vietnam in the top position. This is evidenced by the fact that 53% of respondents predicted that foreign direct investment in Vietnam would increase by the end of Q4.
However, the survey also highlighted key areas for improvement to increase Vietnam’s attractiveness to foreign direct investment. 54% of respondents called for streamlining the administrative apparatus, suggesting that reducing bureaucratic processes could significantly improve the business environment. In addition, 45% highlighted the importance of strengthening the legal system and regulatory environment; 30% considered infrastructure development, including roads, ports and bridges, essential to attracting FDI…
The BCI is a quarterly survey that provides an overview of European investor sentiment in Vietnam. Conducted since 2011, the BCI surveys over 1,400 EuroCham members across a wide range of sectors, providing a time-lapse view of the ever-evolving dynamics of this vibrant Southeast Asian market.
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