Precisely 36% of European firms ranked Vietnam either first, within their top three, or among their top five investment destinations on a global scale, according to the latest Business Climate Index (BCI) report. (Photo: Vietnamnet)

Precisely 36% of European firms ranked Vietnam either first, within their top three, or among their top five investment destinations on a global scale, according to the latest Business Climate Index (BCI) report released by the European Chamber of Commerce in Vietnam (EuroCham) and produced by Decision Lab on April 11.

The report highlighted that Vietnam's draw as a foreign direct investment (FDI) destination remains strong among European business leaders, with 3% more European business stakeholders citing it as one of their top three investment hotspots worldwide.

The BCI, which quantifies the business sentiment of the European business and investment community in Vietnam, held steady at 48 in the first quarter of 2023. Though it remains at the same level it registered as 2022 drew to a close, there are promising indications that European business stakeholders are witnessing a positive shift in their economic outlook.

Encouragingly, the business environment outlook for 2023 is displaying promising signs of betterment. Specifically, the number of respondents who are sanguine about the nation's economy has risen by 8 points, signaling a growing faith in its prospects, it said.

According to the survey, the number of individuals expecting a downturn in the economy decreased by 6%, while that of those forecasting an upturn in revenue and orders increased by 7%.

The survey results also indicate that the European business and investment community is broadly content with the level of attention policymakers have given to business needs in Vietnam, with a third of respondents expressing significant or moderate satisfaction. This positive feedback is a testament to the government's ongoing commitment to fostering a business-friendly environment in the country.

However, foreign businesses in Vietnam continue to grapple with regulatory opacity, administrative inefficiencies, and visa and work permit issues.