Cautious optimism, but administrative bottlenecks remain a stumbling block

Despite the country's robust first-half GDP growth, the BCI experienced a marginal decline from 52.8 in Q1 to 51.3 in Q2 2024, underscoring the necessity for ongoing policy adjustments to maintain momentum.

Source: EuroCham

The BCI survey, conducted by Decision Lab and distributed to EuroCham's network of 1,400 members, serves as a barometer of sentiment among European businesses operating in Vietnam. This quarterly assessment provides real-time insights into the evolving business environment of one of Southeast Asia's most dynamic markets.

"Vietnam's economic potential is undeniable, and the European business community remains confident in its long-term growth," says Dominik Meichle, Chairman of EuroCham Vietnam. "While our survey points to areas for improvement, we believe that by working together to address administrative and regulatory hurdles, we can create a more efficient and attractive business environment that benefits both the European and Vietnamese business communities."

Meichle continued, "This survey, powered by our members' real-world experiences, is the backbone of our advocacy work. It shapes our conversations with Vietnamese officials and EU policymakers. By bringing our members' perspectives to the table, we are identifying key areas for growth and strengthening the Europe-Vietnam partnership through open dialogue and teamwork."

"These survey results reveal a nuanced picture of the business landscape," said Thue Quist Thomasen, CEO of Decision Lab. "While 68% of respondents report neutral to positive current conditions, there is a slight increase in short-term caution, which needs to be addressed to continue the positive trend from the previous quarters. However, the strong 6.42% GDP growth in the first half of 2024 and nearly 70% expressing long-term optimism indicate robust underlying confidence that may materialise in future readings"./.