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Friday, June 14, 2024

EuroCham’s Q1 report shows growing confidence among European businesses

The Saigon Times

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HCMC – European business confidence in Vietnam has reached its highest level since the third quarter of 2022, as per the latest Business Confidence Index (BCI) released by the European Chamber of Commerce in Vietnam (EuroCham).

The BCI rose to 52.8 in the first quarter of this year, a notable improvement in economic sentiment driven by increased consumer spending in Vietnam.

Some 45% of businesses anticipated economic improvement in the next quarter, up from 39% in late 2023.

Vietnam’s skilled workforce continues to be a significant attraction for European investors, with 75% of EuroCham members primarily hiring local staff.

However, despite this positive outlook, many of the 1,400 European businesses surveyed said they had encountered challenges in adapting to Vietnam’s intensified focus on sustainability.

Key obstacles identified include ambiguity surrounding environmental regulations, all of which hinder the implementation of eco-friendly practices.

Moreover, concerns persist regarding potential instability in the real estate market, global  geopolitical uncertainties, and sector-specific challenges within construction and renewable energy.

The EuroCham report, conducted by Decision Lab, calls for regulatory streamlining, reduced administrative red tape, and further infrastructure development to enhance Vietnam’s appeal for foreign investment.

Dominik Meichle, chairman of EuroCham, said, “Continued efforts to enhance stability and predictability will further strengthen Vietnam’s global competitiveness and unlock its full potential.”

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