European bizs in Vietnam show relative confidence, some doubt: Survey

European firms recognised Vietnam's ongoing economic reforms and structural improvements that helped bolster positive sentiment, and responded with a neutral-to-positive stance on the business climate during the survey.

Forty-two per cent of respondents reported a neutral stance on the business environment, suggesting a preference for vigilance amid ongoing changes.

Apart from solid economic growth and positive growth forecasts (cited by 37 per cent), respondents highlighted trade and investment opportunities (24 per cent) and a rebound in consumer spending and tourism (18 per cent) as favourable signs.

While 68 per cent of European business leaders said they would recommend Vietnam as an investment destination, highlighting their long-term commitment, this figure reflects a 7-point drop from Q4 2024, when 75 per cent expressed similar confidence.

Thirty-seven per cent of respondents cited infrastructure development as the top priority for enhancing Vietnam's investment attractiveness.

Other points noted were streamlining administrative processes (29 per cent) to reduce bureaucratic inefficiencies; easing visa and work permit procedures for foreign experts (24 per cent); as well as greater clarity in laws and stronger law enforcement (21 per cent).

Vietnam's ongoing government restructuring process was met with neutral to cautiously optimistic responses. While most businesses did not expect immediate improvements, many expressed hopes for progress by 2026.

Key anticipated improvements include a shift to digital submissions and approvals (45 per cent); faster processing times for administrative procedures (26 per cent); and decentralisation of decision-making at local levels (25 per cent).

Regarding the provincial mergers, over 40 per cent of respondents believed these changes could eventually improve administrative efficiency and reduce regulatory complexity.

Forty-four per cent suggested their operations would function best if the country reduced its number of provinces to below 30, pointing to a preference for leaner governance.

Fibre2Fashion News Desk (DS)