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| Samsung Electronics Vietnam factory in Bac Ninh. (Source: VNA) |
According to the European Chamber of Commerce in Vietnam (EuroCham), businesses' confidence in the current situation increased from 24% in Q3/2023 to 32% in Q4/2023.
The outlook for Q1/2024 is very positive with 29% of businesses rating the outlook as excellent or good, 31% of businesses planning to expand their workforce and 34% intending to increase investment levels.
According to the report, in the fourth quarter of 2023, Vietnam's position as an investment hotspot increased significantly. 62% of respondents ranked Vietnam among the top 10 global investment destinations, of which 17% ranked Vietnam in the highest position.
Additionally, 53% of respondents predicted that foreign direct investment in Vietnam would increase by the end of the fourth quarter, and 29% of respondents ranked Vietnam among the “top competitive countries” in ASEAN.
According to EuroCham Chairman Gabor Fluit, the confidence of the foreign business community in Vietnam is increasing, and tourism is also recovering strongly.
"Global attention on Vietnam as a top destination for business and tourists also signals a broad-based economic recovery. However, we still need to be cautious. The BCI remains below average and more than a third of businesses are expected to underperform," Gabor Fluit emphasized.
Similarly, Mr. Thue Quist Thomasen, Director of Decision Lab, commented that Vietnam's long-term economic trajectory shows a promising growth path.
“In the short and medium term, Vietnam is demonstrating its branded ability to provide a stable business environment. Stability and potential for improvement by 2024 will be the basis for Vietnam to continue to receive foreign direct investment,” said Mr. Thue Quist Thomasen.
Regarding the workforce in Vietnam, the survey found that 32% of respondents said the workforce is fairly well-educated, but still needs to improve skills and expertise. Additionally, 50% rated the workforce availability as moderate, reflecting the challenge of finding qualified candidates.
The report said that these results show that workforce development and training are needed to improve skills and readiness and better meet the needs of the global market.
Regarding legal challenges, 52% of respondents identified “administrative burden and bureaucratic inefficiency” as one of the top three barriers.
At the same time, European businesses are concerned about securing licenses, the lack of qualified local experts, and difficulties in visa and work permit regulations for foreigners.
According to the Chairman of EuroCham, in the face of increasing economic competition in the region, Vietnam must continue to improve its policies and strategies to attract and maintain European foreign direct investment.
A key area of focus is simplifying administrative procedures, while investing in infrastructure to reduce logistics costs and improve the skills of the workforce. This will help the country maintain its competitiveness and growth trajectory.
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