The latest report from the European Chamber of Commerce in Vietnam (EuroCham Vietnam), published on January 8, indicates that the Business Confidence Index (BCI) among European investors in Vietnam has achieved its highest point for the last two years.
Specifically, the BCI soared to 61.8 in Q4-2024 while the same period in 2023 was only 46.3, reflecting the optimism of the European business community about Vietnam's economic prospects. This result demonstrates Vietnam's incredible resilience to global fluctuations, while affirming the country's increasingly prominent position as a regional trade and investment hub.
In the last two years, the BCI has predominantly hovered around the neutral mark of 50, occasionally dipping below this level. However, the fourth quarter of 2024 signified a crucial shift, as the BCI attained its highest point since early 2022. Among the investors surveyed, 42 percent expressed optimism regarding the current business environment, while 47 percent anticipated that business conditions would continue to be favorable in the upcoming quarter.
Notably, 56 percent forecast an improvement in Vietnam's macroeconomic outlook in the first quarter of 2025. 75 percent of respondents said they would recommend Vietnam as an ideal investment destination.
Chairman Bruno Jaspaert of EuroCham Vietnam stated that this clearly indicates a growing confidence among European businesses in the economic outlook of Vietnam.
Still, European investors have consistently identified three major obstacles such as administrative burdens, ambiguous regulations, and challenges in acquiring licenses.
