European business confidence at highest since 2022

Tuesday, 09/04/2024 10:59
Up to 71% of European businesses said they feel “positive” about the long-term prospects in Vietnam in the next 5 years.

The European Chamber of Commerce in Vietnam (EuroCham) on April 8 announced the Business Confidence Index (BCI) in the first quarter of 2024.

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Accordingly, BCI reached 52.8 points in the first quarter, which is its highest level since 2022 and a clear sign of increased confidence within Vietnam’s European business community.

“This positive trend underscores the European business community's view of Vietnam as a dynamic market with promising growth prospects,” said Dominik Meichle, chairman of EuroCham.

“The index once again rising above the 50 threshold reaffirms the country’s growing appeal. Continued efforts to enhance stability and predictability will further strengthen Vietnam's global competitiveness and unlock its full potential.”

More than half of respondents predict higher orders and revenue in the second quarter, and 40% of businesses plan to expand their workforce in the second quarter.

The reduction of the number of firms planning to cut spending in the upcoming quarter, now just 15 per cent compared to the previous 23 per cent, indicates a boost in investment confidence.

Aiming to attract more foreign investment, businesses pinpointed several key reforms. Accordingly, 37% call for streamlined procedures to ease market entry and reduce red tape. 34% emphasize clear and consistent laws for a predictable investment climate. 28% advocate for the enhancement of roads, ports and bridges to support trade and logistics./.