European businesses optimistic about Vietnam’s economy

(VOVWORLD) - The Business Confidence Index of the European business community in Vietnam reached 52.8 in the first quarter of this year, the highest level since 2022.

European businesses optimistic about Vietnam’s economy - ảnh 1The BCI survey for Q1/2024 (Photo:

The European Chamber of Commerce in Vietnam (EuroCham) on Monday publicized the result of a recent survey of its network of 1,400 members.

More than half of the respondents said they anticipate higher orders and revenues in the second quarter this year, while 40% said they plan to expand their workforce in Q2.

This optimism is even stronger in the long term as 71% said they feel positive about their prospects in Vietnam over the next five years.

Vietnam’s skilled workforce is a major draw for European investors. 75% of EuroCham members hire 76% or more of their staff locally. 54% of those surveyed indicated a strong likelihood of recommending Vietnam as an investment destination to other foreign businesses.

Thue Quist Thomasen, CEO of Decision Lab, who conducted the survey, said he believes Vietnam has the capacity to become the region’s preeminent investment destination, and proactive, investor-focused policies will accelerate its rise.

EuroCham Chairman Dominik Meichle said the index once again rising above the 50 threshold reaffirms Vietnam’s appeal and demonstrates the European business community’s view of Vietnam as a dynamic market with promising growth prospects.

Continued efforts to enhance stability and predictability will further strengthen Vietnam’s global competitiveness and unlock its full potential, he said.

Meanwhile the US website placed Vietnam 6th among the fastest growing economies in Asia in 2024 in its article published on last week. The article cited projections for Vietnam's real GDP growth to reach 5.8% and per capita GDP growth at 7.41%.

Vietnam found itself positioned behind Macao (China) which claimed the top spot, followed by India, Cambodia, Bangladesh, and the Philippines.