EuroCham: Vietnam"s economic growth boosts European businesses’ confidence

Labourers working at Global Dynamics Mechanical Co., Ltd in Giang Dien industrial park, Trang Bom district, Dong Nai province. (Photo: VNA)

The European Chamber of Commerce Vietnam (EuroCham) on April 8 released the Business Confidence Index (BCI) for the first quarter of 2024, saying that the index reached 52.8 points - the highest level since 2022.

The index shows that Vietnam's economic growth boosts the optimism of European businesses. It is also evidence of increased strong confidence in the Vietnamese economy among European businesses operating in the Southeast Asian country.

“This positive trend underscores the European business community’s view of Vietnam as a dynamic market with promising growth prospects,” said EuroCham Chairman Dominik Meichle.

According to him, the index once again rising above the 50 threshold reaffirms the country’s growing appeal. Continued efforts to enhance stability and predictability will further strengthen Vietnam’s global competitiveness and unlock its full potential, he said.

Meanwhile, Thue Quist Thomasen, CEO of Decision Lab - the unit that conducted the BCI survey, said the hard data from the BCI paints a clear picture – investor optimism is steadily improving. Vietnam certainly has the capacity to become the region’s preeminent investment destination. Proactive and investor-focused policies will further accelerate its rise, he said.

European businesses express optimism about Vietnam’s economy, both in the near and long term. While a third of businesses feel optimistic about their inpidual Q2 outlooks, nearly 40% are neutral, over half of respondents anticipate higher orders and revenues in Q2, the index indicates.

Looking to the long term, this optimism strengthens, with 71% of businesses feeling positive about their long-term prospects in Vietnam over the next five years.

Vietnam’s skilled workforce is a major draw for European investors, with 75% of EuroCham members hiring 76% or more of their staff locally, according to the report.

The quarterly BCI serves as a vital tool for understanding the perceptions of European and Europe-related companies and investors in the Vietnamese market. Conducted since 2011, the BCI collects feedback from EuroCham Vietnam’s extensive network of 1,400 members across a perse range of sectors. This survey provides valuable insights into the current business landscape in Vietnam and offers a glimpse into future expectations./.