Vietnam Continues to Attract European Investors
According to the latest report by EuroCham Vietnam, Vietnam continues to be an attractive destination for European investors despite the challenging global situation. EuroCham recently released the results of its Business Confidence Index (BCI) for the second quarter of 2023, which showed a modest decline of 4.5 points in European business confidence towards the Vietnamese market. The current BCI score of 43.5 reflects the prevailing market conditions.
The figures indicate a somewhat challenging outlook, with a notable 10% increase in negative responses regarding the current business situation. This growing sense of caution is further reflected in a 6% rise in negative sentiment for the upcoming quarter. However, amidst these challenges, there is also encouraging news. The report highlights a 9% increase in the number of business leaders who assess their business prospects positively for the third quarter of 2023 compared to the second quarter.
The survey conducted by EuroCham reveals that over half of the businesses surveyed have benefited from the European Union-Vietnam Free Trade Agreement. Among these beneficiaries, 35% of business leaders reported gains from tariff reductions. Despite these gains, businesses still face challenges in fully capitalizing on the agreement, with administrative procedures and a lack of understanding remaining as the main barriers.
Overall, the report underscores Vietnam’s enduring attractiveness to European investors, even in the face of global challenges. The positive outlook for business prospects in the coming quarters, coupled with the benefits of the EU-Vietnam Free Trade Agreement, contributes to Vietnam’s continued appeal as an investment destination.