EuroCham’s Business Confidence Index grows amidst typhoon Yagi’s aftermath

According to the report, Vietnam's resilience has been clear as the BCI score saw a notable increase, rising from 45.1 in the third quarter of 2023 to 52.0 this quarter, signaling a strong annual recovery despite enduring tough external conditions.

The damage caused by typhoon Yagi severely impacted the infrastructure and agricultural sectors throughout northern localities, prompting the Vietnamese Government to forecast a 0.15% reduction in GDP for the whole year.

However, EuroCham’s latest survey conducted after the typhoon from September 12 to 25 shows that 47.4% of respondents are confident that their companies will see an improvement over the coming quarter. Additionally, long-term optimism remains high, with 69.3% expecting a favourable business climate over the next five years.

This positive outlook is further reinforced by the country’s continued appeal as an investment destination, with 67% of European businesses still recommending Vietnam despite facing ongoing challenges.

“Despite the recent economic strain caused by Typhoon Yagi, the resilience and adaptability of both the Vietnamese economy and European businesses operating here are evident in this latest survey. These results are not just numbers; they tell a story of Vietnam’s evolving role as a strategic business hub,” said Bruno Jaspaert, chairman of EuroCham Vietnam.

“The typhoon’s impact also highlights the urgent need to address climate change, making the Green Economy Forum & Exhibition (GEFE) 2024, from October 21 to 23, a timely platform to drive necessary dialogue on how Vietnam can remain competitive while transitioning towards a greener, more sustainable future,” he noted.