Business confidence among European enterprises operating in Vietnam is showing signs of vigorous resilience despite operational hurdles and global economic uncertainties, according to the Business Confidence Index (BCI) report from the European Chamber of Commerce in Vietnam (EuroCham Vietnam).

According to the latest BCI report released by EuroCham Vietnam on Wednesday, the BCI jumped from 46.3 in the fourth quarter of 2023 to 61.8 in the last quarter of 2024, the highest over the past two years, marking a pivotal shift from a neutral to a positive sentiment in both current and future outlooks.

This result reflects the optimism of the European business community in Vietnam's economic prospects, and demonstrates Vietnam's resilience amidst a turbulent global economic, environmental, and geopolitical landscape.

The report attributes Vietnam’s strong performance to the country’s continued growth trajectory, its improving infrastructure, and its emergence as a regional hub for both trade and investment.

After hovering around the neutral midpoint of 50 for much of the past two years, the BCI for the last three months of 2024 marked a pivotal shift as the score reached its peak in early 2022. 

The report was based on a BCI survey conducted by Decision Lab, a leading market research company in Vietnam, to collect feedback from EuroCham Vietnam’s network of 1,400 members across a diverse range of sectors. 

During the survey, 42 percent of respondents expressed positive feelings about the current business situation in the country, with 47 percent anticipating similar optimism for the following quarter. 

Additionally, 56 percent of respondents foresaw 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,” chairman of EuroCham Vietnam Bruno Jaspaert said, adding that the country’s GDP growth confirms its position as a central player in the Southeast Asian regional trade and investment.

He attributed the uptick in business confidence to several factors, including Vietnam's ongoing economic reforms and the country's central role in the global shift toward sustainable development.

Many respondents highlighted the ‘double transformation’ of digital and green transformation as key drivers of optimism that helped them thrive, with some even reporting revenue growth of up to 40 percent compared to 2023.

The sustainability trend, promoted by both national policies and international green standards, has become an important factor in forming business strategies across many sectors in the Southeast Asian country, the report says. 

Most notably, 75 percent of survey respondents said they would recommend Vietnam as an ideal investment destination. This high rate underlines the increasing recognition of Vietnam's strategic importance as an investment hub in Southeast Asia.

“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,” Jaspaert commented. 

With strong growth and expanding infrastructure, Vietnam has continued to affirm its position as an attractive destination for European businesses looking to expand their operations in the region.

Despite the positive general outlook, operational challenges remain a concern for European businesses in Vietnam.

As in previous BCI reports, the top three operational obstacles identified were administrative burden, unclear regulations, and difficulties in obtaining licenses and permits.

Forty-two percent of businesses cited the complexities of visa requirements for foreign experts as the biggest administrative challenges – a situation which makes it difficult to recruit and retain high-quality human resources from abroad.

Tax-related problems, including VAT refunds, were also cited by 30 percent of businesses, along with other challenges related to import-export procedures and investment registration. 

EuroCham Vietnam said it stands ready to continue working with the Vietnamese government to remove these barriers.

“Vietnam is at a critical juncture,” noted chairman Jaspaert.

“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."

Another area where businesses are expecting significant improvements is in infrastructure.

For instance, 58 percent of respondents predicted substantial benefits for employee mobility and logistics from the North-South high-speed railway project that will be started in late 2027.

As Vietnam continues its transformation, the opportunities for European businesses are clear, Jaspaert emphasized, affirming that the country, with the right policies, infrastructure, and business environment, could continue to attract investment and grow sustainably.

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