Workers at Global Power Mechanics Company, Giang Dien Industrial Zone, Trang Bom District (Dong Nai). (Photo: Hong Dat/TTXVN)
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On April 8, the European Chamber of Commerce in Vietnam (EuroCham) announced the Business Confidence Index (BCI) in the first quarter of 2025 reached 52.8 points, the highest level since 2022.
The BCI survey results show that Vietnam’s economic growth is driving optimism among European businesses.
In particular, the BCI index reflects the growing confidence in the Vietnamese economy within the European business community.
EuroCham Chairman Dominik Meichle shared that the positive signal of the BCI shows that the European business community’s view of Vietnam remains a dynamic market with excellent growth prospects.
This index once again rose above the 50-point mark, affirming Vietnam’s attractiveness and continuous efforts to enhance its stability and global competitiveness.
Thue Quist Thomasen, CEO of Decision Lab (the unit that conducts the BCI survey), said that the hard data from the BCI paints a clear picture of steadily improving investor optimism.
Vietnam has the potential to become the region’s preferred investment destination, and proactive policies focused on investors will further accelerate Vietnam’s development.
Specifically, European businesses expressed optimism about the Vietnamese economy in both the short and long term. Of these, a third of businesses surveyed feel optimistic about their own second-quarter 2024 prospects, and nearly 40% are neutral.
In addition, several key survey indicators show the expectations of European businesses, as more than half of businesses surveyed predict higher order volumes and revenues in the second quarter of 2024.
The reduction in the number of businesses planning to cut spending next quarter, now at only 15% compared with 23% in the previous survey, indicates that investment confidence is increasing.
Looking long term, there is further confirmation of this optimism, with 71% of businesses feeling positive about their long-term prospects in Vietnam over the next 5 years.
Furthermore, Vietnam’s skilled workforce is a major attraction for European investors, with 75% of EuroCham members employing 76% or more local staff.
However, the BCI survey results also indicate that European businesses continue to face legal barriers in Vietnam, hindering market entry and long-term investment.
To attract more foreign investment, European businesses recommend that Vietnam identify key reforms, including simplifying administrative procedures, strengthening the legal framework, and improving infrastructure.
Moreover, simplifying procedures and establishing clearer regulations will create a more efficient operating, business, and investment environment for both Vietnamese and foreign enterprises.
This will also help Vietnam become a leading investment destination in the region, benefiting domestic businesses, attracting foreign capital, and strengthening economic partnerships.
My Phuong
