EuroCham: Viet Nam's economic growth fuels European businesses' optimism
VGP – There is a clear sign of increased confidence among European businesses operating in Viet Nam's economy, according to EuroCham's latest Business Confidence Index (BCI).
BCI, released every quarter, gathers responses to gauge the prevailing mood among European businesses operating in Vietnam, delivering real-time observations into the ever-evolving dynamics of the vibrant Southeast Asian market.
The quarterly index reached 52.8 in the first quarter this year– its highest level since the third quarter in 2022.
"This positive trend underscores the European business community's view of Viet Nam as a dynamic market with promising growth prospects," said EuroCham Chairman Dominik Meichle. "The index once again rising above the 50 threshold reaffirms the country's growing appeal. Continued efforts to enhance stability and predictability will further strengthen Vietnam's global competitiveness and unlock its full potential."
"The hard data from the Business Confidence Index paints a clear picture – investor optimism is steadily improving," said Decision Lab CEO Thue Quist Thomasen. "Viet Nam certainly has the capacity to become the region's preeminent investment destination, and proactive, investor-focused policies will further accelerate its rise.
European businesses signal a strong likelihood of recommending Viet Nam as a top investment destination. A significant 54 percent of those surveyed indicated a high likelihood of recommending the country to other foreign businesses, giving ratings of 8 or above out of 10. This highlights Viet Nam's rapidly growing appeal within the European business community, while also suggesting potential to further increase its attractiveness to investors.
Looking to the long term, this optimism strengthens, with 71 percent of businesses feeling positive about their long-term prospects in Viet Nam over the next five years.
The BCI, which is conducted by Decision Lab, serves as a vital tool for understanding the perceptions of European and Europe-related companies and investors in the Vietnamese market.
First introduced in 2011, the BCI collects feedback from EuroCham Viet Nam's extensive network of 1,400 members across a diverse range of sectors. This survey provides valuable insights into the current business landscape in Viet Nam and offers a glimpse into future expectations./.
