EuroCham Vietnam unveiled the Business Confidence Index (BCI) for the first quarter of 2024 on Monday, revealing a notable increase to 52.8 points – the highest recorded level since 2022.
The index indicates that Vietnam’s economic growth is fueling optimism among European businesses, signaling a growing confidence in the Vietnamese economy within the European business community operating in Southeast Asia.
EuroCham Chairman Dominik Meichle remarked, “This positive trend underscores the European business community’s perception of Vietnam as a dynamic market with promising growth opportunities.”
Meichle highlighted that the index surpassing the 50-point threshold once again confirms the country’s rising attractiveness. He emphasized that continuous efforts to bolster stability and predictability will further enhance Vietnam’s global competitiveness and unleash its full potential.
Thue Quist Thomasen, CEO of Decision Lab – the entity conducting the BCI survey, pointed out that the concrete data from the BCI reflects a steadily improving investor sentiment. He expressed confidence in Vietnam’s capability to emerge as the region’s leading investment destination, emphasizing that proactive and investor-centric policies will expedite this ascent.
The index indicates that European businesses hold optimism regarding Vietnam’s economy in both the short and long term. While a third of businesses express optimism about their Q2 outlooks, nearly 40% remain neutral. Over half of the respondents anticipate increased orders and revenues in Q2.
Looking ahead, this optimism strengthens, with 71% of businesses feeling positive about their long-term prospects in Vietnam over the next five years.
Vietnam’s skilled workforce is a significant attraction for European investors, with 75% of EuroCham members employing 76% or more of their staff locally, as per the report.
The quarterly BCI serves as a crucial tool for gauging the sentiments of European and Europe-related companies and investors in the Vietnamese market. Conducted since 2011, the BCI gathers insights from EuroCham Vietnam’s extensive network of 1,400 members across various sectors, offering valuable insights into the current business landscape in Vietnam and providing a glimpse into future expectations.