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<h2 style="text-align:justify">VOV.VN - The economic potential of the Vietnamese market is undeniable, and the European business community remains confident in its long-term growth, said the European Chamber of Commerce in Vietnam (EuroCham) in its Business Confidence Index (BCI) report for the second quarter of the year.</h2>

<img alt="european businesses remain confident in vietnam s long-term growth picture 1" src="https://media.vov.vn/sites/default/files/styles/large/public/2024-07/kinh%20doanh.jpg" title="european businesses remain confident in vietnam s long-term growth picture 1" />

In its report, EuroCham offered a nuanced perspective on the economic landscape for European enterprises operating in Vietnam.

The report outlined that despite the country&#39;s robust first-half GDP growth, the BCI experienced a marginal decline from 52.8 in the first quarter to 51.3 in the second quarter, a drop which underscores the necessity for ongoing policy adjustments to maintain momentum.

&ldquo;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,&rdquo; said Dominik Meichle, chairman of EuroCham Vietnam.

&ldquo;This survey, powered by our members&#39; real-world experiences, is the backbone of our advocacy work. It shapes our conversations with Vietnamese officials and EU policymakers. By bringing our members&#39; perspectives to the table, we are identifying key areas for growth and strengthening the Europe-Vietnam partnership through open dialogue and teamwork,&quot; he added.

According to Thue Quist Thomasen, CEO of Decision Lab that conducted the survey, 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.

&ldquo;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,&rdquo; said the CEO.

Experts also pointed out several key challenges facing European firms in the Vietnamese market, including ambiguous regulations subject to varying interpretations; burdensome administrative processes; difficulties in obtaining licences, permits, and approvals; challenges with visas and work permits for foreign workers; and duplicate or inconsistent approvals across government levels.

Think tanks also put forth five ways to boost FDI in the country, including streamlining administrative procedures, enhancing clarity and precision in laws to reduce arbitrary interpretation, developing core infrastructure, simplifying visa and work permit procedures for foreign experts, and continuing to ensure both political stability and security.

The BCI survey, conducted by Decision Lab and distributed to EuroCham&#39;s network of 1,400 members, serves as a barometer of sentiment among European businesses operating in the Vietnamese market. This quarterly assessment provides real-time insights into the evolving local business environment of one of Southeast Asia&#39;s most dynamic markets.

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