EuroCham Business Confidence Index Q1 2024

EuroCham Business Confidence Index Q1 2024 is a quarterly barometer of business sentiment among European and Europe-related companies operating in Vietnam, run by EuroCham since 2011 and conducted by Decision Lab since Q2 2018. In Q1 2024, the index jumped 6.5 points to 52.8 - its sharpest rise in over a year and a strong start to the year. Sustained participation from EuroCham members has made it a trusted indicator of economic activity in Vietnam for decision-makers, media, and business leaders. The report consolidates how European companies view the state and evolution of Vietnam's business environment, giving business leaders and investors an evidence-based read for planning amid shifting conditions.

Key highlight points:

• Confidence rebounded sharply to start the year. Optimism about the economy rose to 45% while pessimism halved to 10% quarter-on-quarter - a clear, broad-based lift in mood among European businesses.

• Long-term conviction is strong. 71% of businesses are optimistic about their prospects in Vietnam over the next five years, signalling durable confidence in the country as a place to grow.

• Vietnam holds its pull as an investment destination. 54% of businesses would actively recommend Vietnam to other foreign investors, and more firms now plan to raise investment and headcount in the quarter ahead - confidence translating into growth plans.