EuroCham Business Confidence Index Q2 2024
The Business Confidence Index (BCI) is a quarterly barometer of business sentiment among European companies operating in Vietnam, run by EuroCham since 2011 and conducted by Decision Lab since Q2 2018. In Q2 2024, the index eased to 51.3 - still positive, but signalling a more cautious, wait-and-see mood. 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 is written for business leaders and investors responsible for planning amid shifting conditions in Vietnam.
Key highlight points:
- Businesses have returned to wait-and-see. Almost half of respondents (45%) feel neutral about the quarter ahead, as tentative recovery and mixed demand signals keep companies cautious.
- Regulation and red tape are the biggest drags. Unclear, inconsistently applied rules top the list of obstacles, cited by 43% of businesses, with administrative inefficiencies (27%) close behind - the main impediments to efficient operations.
- The EVFTA is delivering on its core aim. Almost 1 in 3 businesses (29%) report tariffs being reduced as intended, and the share seeing moderate-to-significant benefit has risen over 10 points year-on-year.