European businesses believe in Vietnam’s long-term growth
NDO – The Business Confidence Index (BCI) for the second quarter of 2024 of European enterprises in Vietnam shows that the European business community still believes in Vietnam’s long-term growth, as well as the economic potential of one of the most dynamic markets in Southeast Asia.
On July 15, the European Chamber of Commerce in Vietnam (EuroCham) released the Business Confidence Index (BCI) report for the second quarter of 2024, providing a multi-dimensional view of the economic situation of European businesses in Vietnam.
The BCI survey, conducted by Decision Lab and distributed to EuroCham’s network of 1,400 members, serves as a barometer of European businesses operating in Vietnam, providing real-time insights into the country’s evolving business environment.
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| Assessing the state of European business. (Source: EuroCham) |
According to the report, the BCI has slightly decreased from 52.8 in Q1 to 51.3 in Q2/2024. According to EuroCham’s assessment, despite the slight decrease, the index still remains positive.
This cautious optimism is consistent with Vietnam’s strong GDP growth in the first quarter, indicating a revision in expectations amid a promising economic backdrop.
Regarding current business conditions, the majority (68%) of European businesses maintain a neutral to positive view of their business conditions, indicating a general sense of stability.
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| Nearly 70% of European business leaders surveyed expressed optimism about Vietnam’s economic growth over the next five years. (Source: EuroCham) |
In terms of long-term prospects, despite the cautious short-term outlook, nearly 70% of business leaders surveyed expressed optimism about Vietnam’s economic growth over the next five years. This confidence is reflected in the proportion of businesses that would recommend Vietnam as an investment destination.
Accordingly, the majority of business leaders (nearly 70%) recommend Vietnam as an investment destination. EuroCham commented that this shows the trust of foreign enterprises in the business environment.
This positive sentiment among businesses could be a strong incentive for new foreign investors to consider investing in Vietnam.
While European businesses remain optimistic about Vietnam’s potential, the survey highlights challenges that are hindering growth and investment.
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| The majority of European business leaders (nearly 70%) recommend Vietnam as an investment destination. (Source: EuroCham) |
To attract more FDI and stimulate economic growth, surveyed businesses highlighted factors that Vietnam can improve its business environment.
Accordingly, European businesses recommend streamlining administrative processes and procedures, increasing clarity in laws, developing core infrastructure, simplifying visa and work permit procedures for foreign experts, etc.
Strong GDP growth of 6.42% in the first half of 2024 and nearly 70% expressing optimism over the long term show strong belief that positive indicators can materialize in the future, said Mr. Thue Quist Thomasen, CEO of Decision Lab.
Meanwhile, Chairman of EuroCham Vietnam Dominik Meichle said that Vietnam’s economic potential is undeniable and the European business community still believes in Vietnam’s long-term growth.
Mr Meichle stressed that although there are still areas for improvement, by working together to address barriers, we can create a more efficient and attractive business environment that benefits both the European and Vietnamese business communities.
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