24/04/2024

The Business Confidence Index (BCI) according to a survey by the European Business Association in Vietnam (EuroCham) reached 52.8 in the first quarter of 2024 - the highest level since 2022, showing increasing confidence in Vietnam's European business community.

With such high results, Mr. Dominik Meichle, new President of EuroCham, said that this positive trend emphasizes the European business community's view of Vietnam as a dynamic market with growth prospects. This index once again increased above the 50-point threshold, confirming Vietnam's growing attractiveness thanks to continuous efforts to improve stability and global competitiveness.

In addition, this BCI index also shows that 54% of people surveyed are likely to recommend Vietnam to other foreign businesses as a top investment destination, with its increasing attractiveness and position increasing. Vietnam's growth with investors.

European businesses also expressed optimism about Vietnam's economy in both the short and long term.

In the second quarter alone, one-third of businesses felt optimistic about development prospects and nearly 40% had a neutral opinion. Of these, more than half of respondents predict the number of orders and revenue will be higher in the second quarter; along with 40% of businesses planning to expand their workforce. The number of businesses planning to cut spending in the second quarter is only 15% compared to 23% previously, showing that investment confidence has increased.

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

Vietnam's highly skilled workforce is a major attraction for European investors with 75% of EuroCham members employing 76% or more of their staff locally.

However, on the contrary, many European businesses reported facing legal barriers in Vietnam, thereby hindering market entry and long-term investment. In particular, administrative burden is considered a major obstacle to establishing and expanding operations, in addition, the ambiguity of regulations also creates uncertainty and hinders strategic planning; Difficult licensing causes delays and costs in obtaining approval...

Therefore, European businesses recommend reasonable procedures to easily enter the market; At the same time, it emphasizes the need for clear and consistent laws to create a predictable investment environment. Businesses also suggested improving transport infrastructure such as roads, ports and bridges to support trade and logistics.

In addition, recent disruptions on important shipping routes such as the Red Sea have highlighted the vulnerability of the global supply chain, so European businesses expressed that Vietnam must find every solution possible to minimize the impact of external risks on the economy.

Mr. Dominik Meichle commented that Vietnam has huge economic potential and resolving legal challenges is the key to fully realizing that potential. This also helps Vietnam become a leading investment destination in the region, bringing benefits to domestic businesses, attracting international capital and strengthening economic partnerships.

Source:Custom News