The confidence of European businesses is strengthened by the economic growth of Vietnam
On April 8, the European Chamber of Commerce Vietnam (EuroCham) unveiled the Business Confidence Index (BCI) for the first quarter of 2024, registering at 52.8 points – marking the highest level since 2022.
The BCI reflects a surge in optimism among European businesses, attributed to Vietnam’s robust economic growth. This uptrend signifies heightened confidence in the Vietnamese economy among European enterprises operating in the Southeast Asian nation.
EuroCham Chairman Dominik Meichle remarked, “This positive trend underscores the European business community’s perception of Vietnam as a dynamic market with promising growth opportunities.” He emphasized that surpassing the 50 threshold reaffirms Vietnam’s increasing attractiveness. Meichle stressed that sustained efforts to enhance stability and predictability would enhance Vietnam’s global competitiveness and unleash its full potential.
Thue Quist Thomasen, CEO of Decision Lab, the entity conducting the BCI survey, noted that empirical data from the BCI clearly indicates a steady improvement in investor sentiment. He asserted that Vietnam possesses the potential to emerge as the region’s foremost investment destination and emphasized the need for proactive and investor-centric policies to expedite its ascent.
European businesses exhibit optimism regarding Vietnam’s economy in both the short and long terms. While a third of businesses express optimism about their Q2 prospects, nearly 40% remain neutral. Over half of respondents anticipate increased orders and revenues in Q2, as indicated by the index.
Long-term optimism is robust, with 71% of businesses expressing positivity about their prospects in Vietnam over the next five years.
Vietnam’s skilled workforce serves as a significant attraction for European investors, with 75% of EuroCham members hiring 76% or more of their employees locally, according to the report.
The quarterly BCI plays a crucial role in gauging the perceptions of European and Europe-related companies and investors in the Vietnamese market. Conducted since 2011, the BCI gathers feedback from EuroCham Vietnam’s extensive network of 1,400 members spanning diverse sectors. This survey furnishes invaluable insights into the prevailing business landscape in Vietnam and provides a glimpse into future expectations.
