EuroCham: Vietnam maintains its attractiveness to foreign investors

The Business Confidence Index (BCI) report for the second quarter of 2023 recently released by the European Business Association in Vietnam (EuroCham Vietnam) shows that Vietnam still maintains its position as one of the top 5 destinations. the top investment of more than a third of European businesses surveyed, showing the country's long-term appeal.

 Manufacturing and assembling cars at Ford Hai Duong Factory. (Photo: nhandan.vn)

The Business Confidence Index (BCI) survey is conducted quarterly by EuroCham and market research company Decision Lab. The BCI Index is considered the leading measure of the perspective of the business community and European investors on the Vietnamese market.

By gathering feedback from EuroCham Vietnam's extensive network of 1,300 members across many sectors, the report provides in-depth assessments of the current business landscape of European businesses in Vietnam and gives an overview of future expectations.

Optimism about the economy increased slightly

According to the latest BCI report published on July 10, the proportion of European businesses predicting stability or improvement in business operations in Vietnam has increased by 2%, bringing the total number of businesses predicting this. up nearly 1/3 of the total surveyed.

In the context of many challenges, the report also shows encouraging signs with the number of European business leaders giving positive assessments of business prospects in the third quarter of 2023 increasing by 9% compared to the assessment. for the previous quarter.

Also according to the report, Vietnam continues to attract foreign investors, with 48% of survey participants expecting their company's foreign direct investment (FDI) in Vietnam to increase in the quarter. next.

Although a total of 40% of businesses expressed no plans to increase FDI, marking a 4% increase compared to the previous BCI, the report shows that Vietnam still consolidates its position as one of the top 5 investment destinations. of more than a third of European businesses surveyed, showing the country's enduring appeal.

The report also emphasizes that regulations and administrative procedures are the main legal barriers limiting the operations of European businesses in Vietnam.

Businesses surveyed highlighted the importance of improving the legal environment, developing infrastructure and ensuring access to finance to enhance Vietnam's attractiveness for direct investment. foreign reception.

The report also shows that more than half of the businesses surveyed benefited from the Vietnam-European Union Free Trade Agreement (EVFTA). Among them, 35% of business leaders said they benefited from tariff cuts.

Despite this, businesses still face challenges in making the most of the Agreement's arrangements, with administrative procedures and inadequate understanding of the Agreement remaining key barriers. to maximize benefits from the Agreement.

Regulatory reform and skilled labor act as growth drivers

Decision Lab CEO Thue Quist Thomasen said the survey results show that the service sector shows resilience, while the manufacturing sector still has many challenges. It is important to address regulatory and infrastructure constraints to promote sustainable growth and attract foreign investment.

According to Mr. Thue Quist Thomasen, European businesses emphasize that reducing administrative difficulties and improving the qualifications of the workforce will create conditions for growth. A quality workforce is also important for businesses to maintain confidence in their own businesses and the economy.

Evaluating BCI in the second quarter of 2023, EuroCham President Gabor Fluit said that Vietnam's economy mainly relies on production and export, and is being greatly affected by the difficult global situation. The decline in exports and orders has had a major impact on European businesses and the business community in general.

Appreciating the efforts of the Vietnamese Government in quickly implementing practical solutions to solve the above challenges, especially accelerating important infrastructure projects, Mr. Gabor Fluit also expressed expressed confidence that the above measures will bring a significant boost to the economy in the long term.

Regarding the issues raised in the BCI report, EuroCham President said he has cooperated closely with the government to find effective solutions.

Emphasizing EuroCham's readiness to support through dialogue and policy consultation, Mr. Gabor Fluit stated recommendations that, through quick and comprehensive action, Vietnam will not only attract foreign investment but also ensure a sustainable future. The economy is strong and capable of overcoming future obstacles.

According to nhandan.vn