The Business Confidence Index (BCI) of European enterprises in Vietnam has surged from 46.3 in Q4 2023 to 61.8 in Q4 2024, marking the highest level in two years and reflecting growing optimism among European investors about Vietnam’s economic prospects.
BCI Reaches Highest Level in Two Years
According to the European Chamber of Commerce in Vietnam (EuroCham), the latest quarterly survey reveals a remarkable rebound in business sentiment. After hovering around the neutral threshold of 50 for two consecutive years, the BCI jumped to 61.8, signaling renewed optimism across European businesses operating in Vietnam.
The survey shows that 42% of respondents feel positive about current business conditions, while 47% expect further improvement in the next quarter. Notably, 56% anticipate Vietnam’s macroeconomic outlook will strengthen in Q1 2025.
EuroCham Vietnam Chairman Bruno Jaspaert highlighted that this surge in confidence demonstrates growing recognition of Vietnam’s ongoing economic transformation and its critical role in regional trade and investment. Vietnam’s sustained GDP growth continues to reinforce its position as a strategic hub in Southeast Asia.
Businesses Plan to Expand Operations in Vietnam
The survey also found that 75% of European business leaders would recommend Vietnam as an ideal investment destination — a clear sign of rising confidence in the country’s investment environment.
Many companies have already planned to expand operations, with about 25% considering partnerships with Vietnamese manufacturers or service providers, and over 20% looking to increase their physical presence. Another 30% of businesses plan to boost import–export activities or relocate production to Vietnam to capitalize on its trade advantages.
This trend aligns with global supply chain shifts and underscores Vietnam’s growing role as a safe, competitive, and strategic manufacturing base in Asia.
Government Reforms Foster a Favorable Business Climate
Despite the positive outlook, European enterprises continue to face operational challenges — including administrative burdens, regulatory uncertainty, and licensing delays.
Visa requirements for foreign specialists remain the top concern (cited by 42% of respondents), followed by tax-related issues such as VAT refunds (30%) and complex customs procedures.
EuroCham Chairman Bruno Jaspaert emphasized that while bureaucratic hurdles persist, ongoing government reforms aimed at streamlining administrative processes and promoting digital transformation are encouraging. “EuroCham remains committed to providing practical recommendations to help improve Vietnam’s business environment through our annual Whitebook,” he said.
More than 40% of surveyed firms expect administrative procedures to improve in the coming years as digital governance expands and paperwork is reduced. The Government’s push for e-Government and digital transformation continues to be recognized as a strong step toward efficiency and transparency.