The BCI score surged from 46.3 in the fourth quarter of 2023 to 61.8 in the fourth quarter of 2024, marking a pivotal shift from a neutral to a positive sentiment in both current and future outlooks.
The report indicated that 42% of respondents reported feeling positive about the current business situation, with 47% anticipating similarly optimistic conditions for the upcoming quarter.
More prominently, 56% of respondents foresee improvements in Vietnam’s macroeconomic outlook in the first quarter of 2025.
“This is a clear sign that European businesses are increasingly confident about Vietnam’s economic future,” said Bruno Jaspaert, Chairman of EuroCham Vietnam.
“This clear rise in sentiment reflects a broader recognition of the country’s ongoing political and economic transformation it has seen over the past year(s). The country’s GDP growth confirms its position as a central player in Southeast Asian regional trade and investment”, he noted.
The uptick in business confidence can be attributed to several factors, most notably Vietnam’s ongoing economic reforms and its centrality in the global shift toward sustainability.
Notably, many respondents referenced the “double transformation” of digital and green transitions as key drivers of optimism. Businesses that have embraced these trends reported significant growth, with some even citing a 40% increase in revenue compared to the previous year.
The trend toward sustainability, spurred by both government policy and global pressures, is becoming a significant factor in shaping business strategies across multiple sectors.
The report outlined that Vietnam has been rising as a key investment destination. Accordingly, 75% of survey respondents indicated they would recommend Vietnam as an investment destination.
This data underscores the growing recognition of Vietnam’s strategic importance as an investment hub within Southeast Asia. With its strong growth rates and expanding infrastructure, Vietnam has positioned itself as an attractive destination for European businesses looking to expand in the region.
“The growing confidence in Vietnam as an investment destination is a testament to the country’s solid foundations in both trade and economic policy,” said EuroCham’s Chairman.
“Despite the global challenges, Vietnam’s positive investment climate is creating new opportunities for European companies, especially in key sectors like technology, manufacturing, tourism and renewable energy”, he emphasized.
Experts pointed out that operational challenges continue to be a significant concern for European businesses in Vietnam but restructuring efforts bring hope. The top three operational obstacles identified were administrative burdens, unclear regulations, and difficulties in obtaining licenses and permits.
“Vietnam is at a critical juncture. These ongoing administrative hurdles challenge business operations, but we are optimistic about the government’s determination to create a more conducive environment. Initiatives such as the steering committee for government restructuring show promise” Chairman Jaspaert noted.
Another area where businesses are expecting significant improvements is in infrastructure. The ongoing development of the North-South high-speed railway, for instance, has garnered considerable attention, with 58% of respondents predicting substantial benefits for employee mobility and logistics. The railway, expected to significantly improve connectivity between the north and south of Vietnam, will reduce transportation costs, improve supply chain efficiency, and enhance the overall business environment.
Insiders analyzed that these infrastructure developments in rail, air, and maritime transport will bolster Vietnam’s position as a more competitive player in regional and global trade, while fostering a more efficient and interconnected business landscape.
