The BCI shows that the confidence among the European businesses operating in Vietnam has sharply increased.

Conducted quarterly by Decision Lab, the BCI has collected feedback from EuroCham Vietnam’s extensive network of 1,400 members across a diverse range of sectors, providing an overview of the thoughts of European enterprises operating in Vietnam.

The last quarter of 2023 saw a marked increase in satisfaction among the businesses, with firms confident in their current situation rising from 24% in the third quarter to 32% in the fourth quarter.

The outlook for Q1 of 2024 is positive, with 29% of enterprises viewing their business prospects as “good” or “excellent” – a sign of diminishing concern as extreme worries fell from 9% to 5%.

EuroCham Chairman Gabor Fluit said that there was definitely a positive trend underway, and while there was a long way to go for a full recovery, businesses were feeling more hopeful. He affirmed that the European business community is increasingly optimistic that the most challenging economic period is now behind them.

The survey shows that in Q4, Vietnam’s investment hotspot status increased significantly. 62% of those surveyed ranked Vietnam among their top ten global investment destinations, with 17% placing it at the very top.

Decision Lab CEO Thue Quist Thomasen said Vietnam’s long-term economic trajectory suggests a promising path of continued growth, while in the short and medium term, Vietnam is showing its trademark ability to deliver a stable business climate even in turbulent times.  

The continued stability and potential improvement in 2024 will underpin the case for further FDI in Vietnam, Thomasen added.