Việt Nam's appeal as an FDI destination: BCI

This information was released at the latest Business Climate Index (BCI) report by the European Chamber of Commerce in Việt Nam (EuroCham) and produced by Decision Lab on Tuesday.

Việt Nam's draw as a foreign direct investment (FDI) destination remains strong among European business leaders, with 3 per cent more European business stakeholders citing it as one of their top three investment hotspots worldwide.

This information was released at the latest Business Climate Index (BCI) report by the European Chamber of Commerce in Việt Nam (EuroCham) and announced by Decision Lab on Tuesday.

Overall, 36 per cent of those surveyed ranked Việt Nam either first, within their top three, or among their top five investment destinations on a global scale.

The BCI, which quantifies the business sentiment of the European business and investment community in Việt Nam, held steady at 48.0 in the first quarter of 2023. Though it remains at the same level it registered as 2022 drew to a close, there are promising indications that European business stakeholders are witnessing a positive shift in their economic outlook.

The Business Climate Index is the premier metric for gaining insight into the European business and investment community's perceptions of the Vietnamese market.

Assembled from feedback gathered from EuroCham Việt Nam's expansive network of 1,300 members, who collectively represent nearly every sector of the country's dynamic economy, this quarterly survey delivers indispensable insights into the current state of Việt Nam's business environment.

It provides a snapshot of what to expect in the future.

EuroCham Chairman Gabor Fluit said: “While a score of 48 might not appear impressive, it is encouraging that the situation is not deteriorating further. The fact that the score is not dropping is a sign of progress, even if it is still far from ideal. This gives us hope that the situation can be improved with further effort.”

“As we have all seen in the past, the Vietnamese government takes swift and decisive action during times of crisis. Therefore, we expect more productive measures in the year's second half. Upcoming reforms to work permit and travel visa procedures will likely directly impact growth. We eagerly await further information on these proposed changes.

"There has also been a notable improvement in liquidity in recent months, and we believe that a clear indication from the government on improved access to finance would boost morale. Overall, we have a positive outlook on the future of Việt Nam's economy and look forward to engaging in productive conversations with the Vietnamese government. We are enthusiastic about working together to take on the challenges and embrace the opportunities ahead.”

Source: Viet Nam News