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<h2 style="text-align:justify">VOV.VN - The European Chamber of Commerce in Vietnam (EuroCham)&#39;s most recent Business Confidence Index, conducted by Decision Lab, has signaled optimism in the Vietnamese economy and increased confidence within the European business community.</h2>

<img alt="vietnamese economic rise fuels european optimism eurocham picture 1" src="https://media.vov.vn/sites/default/files/styles/large/public/2024-04/tt.jpg" title="vietnamese economic rise fuels european optimism eurocham picture 1" />

According to the details set out in report, the quarterly index reached 52.8 in the first quarter of the year, reaching its highest level since the third quarter of 2022.

&quot;This positive trend underscores the European business community&#39;s view of Vietnam as a dynamic market with promising growth prospects,&rdquo; said Dominik Meichle, chairman of EuroCham.

&quot;The index once again rising above the 50 threshold reaffirms the country&#39;s growing appeal. Continued efforts to enhance stability and predictability will further strengthen Vietnam&#39;s global competitiveness and unlock its full potential,&quot; he added.

Thue Quist Thomasen, CEO of Decision Lab said &quot;The hard data from the Business Confidence Index (BCI) paints a clear picture - investor optimism is steadily improving.&quot;&nbsp;

&nbsp;&quot;Vietnam certainly has the capacity to become the region&#39;s preeminent investment destination, and proactive, investor-focused policies will further accelerate its rise,&rdquo; he assessed.

In fact, European businesses have a strong likelihood of recommending the nation as a top investment destination. A significant 54% of those surveyed indicated that there was a high likelihood of recommending the country to other foreign businesses, giving ratings of eight or above out of 10.

This therefore highlights the country&rsquo;s rapidly growing appeal within the European business community, while also suggesting potential to further increase its attractiveness to potential investors.

European firms have therefore expressed optimism about the Vietnamese economy, both in the near and long term. While a third of businesses continue to feel optimistic about their individual second quarter outlooks, nearly 40% are neutral.

Indeed, several key indicators point towards a promising trajectory, including increased optimism, more revenue expected, a robust jobs outlook, and rising investment confidence.

Looking towards the long term, this optimism strengthens, with 71% of enterprises feeling positive about their long-term prospects in the nation over the next five years.

Most notably, the skilled local workforce represents a major draw for European investors, with 75% of EuroCham members hiring 76% or more of their staff locally. While the BCI survey of the fourth quarter of last year found 40% of businesses rating workforce proficiency as moderate, the strong hiring trend suggests that there is a solid talent foundation for future growth.

Although while optimism remains high, firms face regulatory hurdles which may hinder market entry and long-term investment. Key concerns include administrative burdens, unclear Regulations, permit, license difficulties, and work visa barriers.

Experts pointed&nbsp;out that in order to attract more foreign investment, businesses have pinpointed several key reforms by simplifying administration, strengthening legal framework, and enhancing Infrastructure.

&quot;Vietnam has tremendous economic potential, and addressing regulatory challenges is key to fully realizing it,&quot; said Meichle.

&quot;Streamlining procedures and establishing more transparent regulations will empower both Vietnamese and foreign businesses to succeed. This will position Vietnam as a leading investment destination in the region, benefiting domestic businesses, attracting international capital, and strengthening economic partnerships,&quot; Meichle noted.

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