European businesses at the High-Rise Building Forum held in Ho Chi Minh City - Photo: EuroCham
On July 15th, the European Chamber of Commerce in Vietnam (EuroCham) released its Business Confidence Index (BCI) report for the second quarter of 2024, providing a comprehensive overview of the business environment in Vietnam.
Despite strong GDP growth in the first half of 2024, the BCI declined slightly from 528 points in Q1 to 513 points in Q2.
The survey results showed that a small number of companies reported the economic situation as "very bad" (down from 8% to 6%), while the number of companies describing it as "not good" increased slightly (from 24% to 26%). However, 68% still maintained a neutral to positive view of their business conditions.
In the short-term outlook, 45% of businesses expressed cautious optimism about Vietnam's economy in Q3 2024, while 23% remained concerned.
However, in terms of long-term prospects, 70% of businesses expressed optimism about Vietnam's economic growth over the next five years, reflecting strong confidence in the market's potential.
The survey highlights the legal challenges facing the business environment in Vietnam.
Accordingly, European businesses have reported that there are still ambiguous regulations with differing interpretations, and complex administrative procedures. They face difficulties in obtaining licenses and approvals.
The challenges highlighted in the previous survey, such as visas and work permits for foreign workers, and inconsistencies between different levels of government, still remain.
Therefore, the European business community believes that to attract more FDI and stimulate economic growth, administrative processes and procedures need to be streamlined, and legal clarity enhanced. In addition, Vietnam needs to develop core infrastructure, simplify visa and work permit procedures, etc.
Mr. Dominik Meichle, President of EuroCham Vietnam, shared: "Vietnam's economic potential is undeniable, and the European business community remains confident in Vietnam's long-term growth."
Although our survey points to areas for improvement, we believe that by working together to address administrative and regulatory barriers, we can create a more efficient and attractive business environment."
The survey also revealed a growing commitment to sustainability, with 7% of businesses having achieved carbon neutrality and 37% aiming to do so by or before 2050. However, they also pointed out obstacles such as high costs and a lack of government incentives.
The BCI, conducted by Decision Lab and surveying 1,400 EuroCham members, is an important measure of the sentiment of European businesses in Vietnam.
This report provides insightful perspectives on the dynamic business environment of one of Southeast Asia's most attractive markets.
Source: https://tuoitre.vn/eurocham-thu-tuc-hanh-chinh-can-tro-niem-tin-kinh-doanh-tai-viet-nam-20240715103432835.htm
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