Structural reform, innovation to drive Việt Nam's sustainable development: EuroCham chair

Bruno Jaspaert, chair of EuroCham Vietnam. — Photo vietnamplus.vn

Vietnam’s Business Confidence Index (BCI) reached its highest level in over two years, rising to 61.8 per cent in the fourth quarter of 2024 from 46.3 per cent in the same period of 2023, according to the latest report from the European Chamber of Commerce in Vietnam (EuroCham).

Bruno Jaspaert, chair of EuroCham Vietnam told the Vietnam News Agency in a recent interview that Vietnam continued to stand out as a highly attractive destination for foreign investors, including those from Europe. This was proven by the EuroCham’s Q4 2024 report, which shows that 75 per cent of surveyed business leaders consider Vietnam an ideal choice for investment projects.

“This signals an improving business climate,” Jaspaert said.

Key factors driving this sentiment include favourable policies such as tax incentives, support for large-scale investors, promotion of small-and medium-sized enterprises (SMEs) in industrial zones, and investment in workforce training, according to the EuroCham chair.

He added Việt Nam also offered exceptional cost-effectiveness, with land and energy cost approximately 25 per cent lower than in China, alongside a competitive and abundant workforce, although addressing skill gaps remained essential.

Despite these notable strengths, he suggested Việt Nam improve several areas: “Specifically, establishing a clear and consistent legal framework is crucial, as some regulations remain ambiguous or inconsistent, posing challenges for company establishment and access to renewable energy”.

Another area of concern was the complexity of customs procedures with cumbersome paperwork that complicated large-scale import-export activities.

Jaspaert also pointed out overlapping responsibilities among various government agencies could hinder efficiency for business and investment operation.

To address these challenges, he recommended Việt Nam to focus on streamlining regulations, improving administrative procedures clarity, and enhancing customs efficiency, as well as leveraging ministerial overhauls and deepening collaboration with European partners to unlock potential.

Sharing his perspectives on the country's economic opportunities and challenges in the coming time, Jaspaert said Việt Nam has demonstrated impressive economic resilience, achieving GDP growth of over 7 per cent in 2024, surpassing expectations despite global challenges and natural disasters, particularly Typhoon Yagi - the strongest storm to hit the country in three decades.

However, challenges facing Việt Nam remain on the horizon.

“Inflationary pressures, supply chain disruptions, and geopolitical uncertainties pose significant risks to economic stability. Regulatory challenges and administrative hurdles, as highlighted in the EuroCham Business Confidence Index (BCI), continue to complicate business operations and hinder efficiency,” Jaspaert warned.

He recommended Việt Nam to enhance regulatory transparency, foster structural reform, and embrace green and digital innovation for long-term and sustainable development.

The country should also balance ambitious growth goals with environmental and social inclusivity, he added.