Vietnam remains top 5 global investment sites for EU firms
The confidence of European enterprises in Vietnam’s economy declined for a second quarter but the S-shaped country still remains in the top five global investment destinations for their companies, the latest Business Climate Index (BCI) published by the European Chamber of Commerce in Vietnam (EuroCham) showed last week.
Motorbike production line of Piaggio Vietnam's factory in Binh Xuyen Industrial Park, Vinh Phuc Province. (Photo: VNA)
Hanoi (VNS/VNA) - The confidence of Europeanenterprises in Vietnam’s economy declined for a second quarter but the S-shapedcountry still remains in the top five global investment destinations for theircompanies, the latest Business Climate Index (BCI) published by the EuropeanChamber of Commerce in Vietnam (EuroCham) showed last week.
The BCI dropped below the baseline to 48.0 in Q4 2022, a drop of 14.2 pointscompared to three months ago and 25 points from the first quarter of the year.
Though Vietnam’s economy grew over 8% for the whole of 2022, this datacomes amid continued global economic volatility resulting from a storms offactors including a slowdown in global growth, interest rate hikes, sustainedinflation and bruised consumer confidence.
The number of companies expecting economic stabilisation or improvement in Q4dropped to 27% from 42% in Q3, while the number of firms with growing sense ofpessimism doubled from 19% in Q3 to 38% in Q4.
“Things were definitely less positive in the fourth quarter of 2022 than theywere earlier in the year,” said EuroCham Chairman Alain Cany.
However, according to him, this should not be viewed as a cause for concern.
“In fact, Vietnam’s economic opportunities continue to exceed those of itsregional and international peers. This is evident from the fact that so many ofEuroCham’s members consider Việt Nam central to their global investmentstrategies,” Cany said.
The report said 41% of respondents stated their company is shifting operationsfrom China to Vietnam, up from 13% in the third quarter, while nearly 35% offirms ranked Vietnam among the top five global investment destinations fortheir company, with 12% stating that Việt Nam was their firm’s top investmentsite globally.
However, the report also pointed out three most significant regulatory barriersto foreign companies operating in Vietnam, including a lack of clarityregarding rules and regulations (51%), administrative issues (41%) and visa andwork permit difficulties (30%).
Despite that, 58% were satisfied with the attention of policymakers paid tobusiness needs when setting relevant policies.
In addition, BCI participants reported that the EU-Vietnam Free Trade Agreement(EVFTA) had a positive effect on the growth of their businesses, theirfinancial health through tariff reductions and the strength of their supplychains./.
European firms have shown their optimism about the Vietnamese economy, which is recovering strongly after the COVID-19 pandemic, Vice Chairman of the European Chamber of Commerce in Vietnam (EuroCham) Nguyen Hai Minh has said.
The confidence of European enterprises in Vietnam’s investment and business environment slipped further to 62.2 percentage points in the wake of a worsening global economic downturn but still remains strong, according to the recent Business Climate Index (BCI) survey published by the European Chamber of Commerce (EuroCham) in Vietnam.
Tourism, agriculture, and renewable energy, which have high potential in the Central Highlands, are sectors that European enterprises are interested in, said Alain Cany, President of the European Chamber of Commerce in Vietnam (EuroCham).
Vietnamese companies must understand trends in the EU consumer market, which is undergoing a significant shift towards green and clean goods that meet international labour and environmental standards, the European Chamber of Commerce in Vietnam (EuroCham) has said.
The festival marks a significant milestone in promoting the brand, value, and legacy of traditional fish sauce - a product deeply rooted in the island’s identity and history spanning over 200 years.
According to Mastercard data, Vietnam has recorded a remarkable 92% compound annual growth rate (CAGR) in contactless transaction volume from Q4 2022 to Q4 2024.
Tuan expressed his confidence that LH, with its expertise and experience, would swiftly implement the urban area project, contributing to a modern urban landscape for the province.
With its strategic location, abundant workforce, and modern infrastructure, Vietnam holds significant potential to become a leading centre for power and electronics production in the region and the world.
The renewable energy workforce training and development centre, invested by Germany's GEO Group, is expected to be a cornerstone in shaping Binh Dinh as a renewable energy and innovation hub in central Vietnam, meeting the growing demand for skilled technical personnel in offshore wind, solar farms, and green hydrogen projects.
A notable trend is the shift toward satellite regions. With land scarcity and soaring prices in Ho Chi Minh City and Hanoi, investors are eyeing provinces like Hung Yen, Bac Ninh, and Hai Phong, which are benefiting from improved technical infrastructure and transport connectivity.
To further strengthen private-sector innovation, Bac Ninh plans to accelerate administrative reforms, build a digital, service-oriented government, and develop an integrated innovation ecosystem that connects businesses with domestic and international institutions, universities, and experts.
The participation of H&M, one of the world's largest fashion corporations, in Vietnam International Sourcing 2025 in Ho Chi Minh City in early September is considered a special highlight, opening up many cooperation opportunities for Vietnamese businesses in the fashion, textiles and sustainable supply chains.
This latest order builds on a previous agreement signed at the Singapore Airshow last year for 40 engines, bringing the total number of Trent 7000 engines ordered by the airline to 80.
Minister of Industry and Trade Nguyen Hong Dien acknowledged that despite concerted efforts by ministries and local authorities in combating fake and substandard goods, the situation remains highly complicated, attributing the persistent challenges to high profits luring numerous participants, increasingly sophisticated violations, limited resources within enforcement agencies.
The group also placed among the Top 5 energy companies in Southeast Asia and secured the top spot among the largest Vietnamese enterprises featured on the list.
The zone will cover 1,881 ha, comprising functional areas for production, logistics, trade and services, digital technology industry, information technology, and innovation.
Dung underlined several key objectives, including a comprehensive review of the legal framework governing SOEs, and called for updates that reflect international standards and support modern, transparent governance.
While the US market has become more difficult to access due to new tax policies, Australia could play the role of a trade cushion, helping to reduce shocks and maintain export momentum for Vietnam's shrimp industry.
Vietnam Cycle Expo 2025 will coincide with the Vietnam Sport Show 2025, an international exhibition on sports and outdoor entertainment, expected to attract more than 20,000 visitors in the three-day event.
Motorbike production line of Piaggio Vietnam's factory in Binh Xuyen Industrial Park, Vinh Phuc Province. (Photo: VNA) 
