HCMC – The EuroCham Vietnam Business Confidence Index (BCI) surged to 61.8 in the final quarter of 2024, signaling a major shift to positive sentiment among European businesses active in Vietnam.
This is the highest level since early 2022, with 56% of respondents anticipating an improved macroeconomic outlook in the first quarter of this year.
Key drivers of this optimism include Vietnam’s focus on dual transformation—digital and green transitions. Businesses embracing these trends reported substantial growth, with some citing revenue increases of up to 40%.
Vietnam remains a key investment destination, with 75% of respondents recommending it to others.
Vietnam’s political system restructuring, including streamlined procedures and digital platforms, are boosting confidence. Infrastructure development is expected to improve employee mobility and logistics.
Despite recent impact of typhoon Yagi, the Vietnamese economy has shown resilience. Three months after the devastating storm, 36% of European businesses had fully recovered, with 70% reporting no significant operational impact.
However, administrative hurdles, some unclear regulations, and difficulties in obtaining licenses remain the top worries for European businesses.
About 42% of respondents cited complex visa requirements for foreign workers as a primary concern, while 30% highlighted tax-related issues, such as VAT refunds.
Still, EuroCham Vietnam Chairman Bruno Jaspaert underscored the opportunities for European businesses in Vietnam, stressing the importance of continued policy support and infrastructure development to drive sustainable growth.
