Economic reforms and green transformation trends make European businesses optimistic about Vietnam's economic prospects.

Despite facing inflationary pressures and global geopolitical tensions, Vietnam's economy has maintained an impressive growth rate. This is the assessment in the Business Confidence Index (BCI) Report for the fourth quarter/2024 published by the European Chamber of Commerce in Vietnam (EuroCham) on 8/1.

Accordingly, the Vietnam Business Confidence Index (BCI) in the fourth quarter of 2024 reached 61,8 points - the highest level in more than two years. The report also showed that 42% of European businesses feel positive about the current business situation, and 56% expect the Vietnamese economy to continue to improve in the first quarter of 2025.

Mr. Bruno Jaspaert - Chairman of EuroCham commented that this result reflects the increasing confidence of European businesses in Vietnam as a trade and investment center in Southeast Asia.

According to Mr. Bruno Jaspaert, international green standards and policies promote sustainable development of Goverment Vietnam has contributed to forming new business strategies, enhancing Vietnam's position in the international market.

“Economic reforms and the dual transformation trend – including digital and green transformation – have played an important role in enhancing business confidence. Many businesses have recorded revenue growth of up to 40% thanks to embracing these trends,” the EuroCham Chairman emphasized.

The report also showed that 75% of European businesses participating in the survey said they would recommend Vietnam as an attractive investment destination. Key sectors include technology, manufacturing, Travel, and renewable energy. Additionally, 30% of businesses plan to move production to Vietnam to take advantage of trade and flexible supply chains.

Mr. Thue Quist Thomasen – CEO of Decision Lab (the unit authorized to conduct the BCI survey of EuroCham), believes that the investment shift to Vietnam is in line with the global trade trend. However, he also noted that European businesses still face challenges such as administrative burdens, unclear regulations and difficulties in obtaining licenses.

Complexities related to visa requirements for foreign experts topped the list of administrative difficulties, with 42% agreeing. Tax-related issues, including VAT refunds, were also cited by 30% of businesses, along with other challenges related to import-export procedures and investment registration.

The Chairman of EuroCham Vietnam said that prolonged administrative difficulties are challenging business operations, but European businesses remain optimistic about the Government’s determination to create a more favorable environment. “Efforts such as the project to reorganize and streamline the organizational apparatus are showing positive prospects,” he pointed out.

Source: Vietnam.vn
 

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