Despite global economic uncertainties, Vietnam's steady economic growth has bolstered European businesses' confidence in the country's economic prospects. According to the latest Business Climate Index (BCI) report released by the European Chamber of Commerce (EuroCham) in Vietnam, the BCI surged to 61.8 points in the fourth quarter of 2024, reaching its highest level in over two years.
This report reflects the optimistic outlook of European companies on Vietnam's economy. The survey reveals that over 40% of European businesses are satisfied with their current operations in Vietnam, with nearly half expressing positive expectations for the next quarter. Moreover, more than half of the surveyed companies predict that Vietnam's macroeconomy will continue to improve in the first quarter of 2025.
EuroCham Chairman Bruno Jaspaert attributes the rise in the BCI to European businesses' recognition of Vietnam's political and economic reforms in recent years. Despite facing global challenges such as inflationary pressures and geopolitical tensions, Vietnam maintains a positive investment environment, creating numerous new opportunities for European companies.
The report also highlights that a remarkable 75% of surveyed European companies would recommend Vietnam as an ideal investment destination. This underscores the widespread recognition of Vietnam's strategic importance, strong economic growth, and continuously improving infrastructure, which are attracting European businesses seeking to expand their presence in Asia.
Thue Quist Thomasen, CEO of DecisionLab, the firm responsible for the BCI survey, notes that more and more European companies are expressing positive views on Vietnam's attractiveness for foreign investment projects. Most companies are planning to expand their operations in Vietnam or considering collaborating with Vietnamese manufacturing facilities or service providers.
Experts believe that EuroCham's BCI is a testament to Vietnam's evident economic recovery and signals a bright future for European companies operating in the country. Despite operational challenges and global uncertainties, businesses remain optimistic about Vietnam's continued growth.