According to a recent survey conducted by the European Chamber of Commerce in Vietnam (EuroCham), 41% of respondents stated that their company was moving operations from China to Vietnam, an increase of 13% compared to the figure registered in the third quarter of 2022.
The results were included in the Business Climate Index (BCI), created by YouGov Decision Lab and published by EuroCham. The BCI is a key indicator of European investors and businesses in Vietnam. EuroCham invites its 1,300 members, who essentially represent every sector of the Vietnamese economy, to offer quarterly input on the business environment in Vietnam and forecast for their own enterprises.
About 35% of respondents listed Vietnam among their company’s top five overseas investment locations, with 12% saying Vietnam was their company’s top international investment site.
The three biggest regulatory obstacles for foreign businesses operating in Vietnam were identified to be lack of clarity regarding laws and regulations (51%), administrative problems (41%), and issues obtaining visas and work permits (30%). Despite these challenges, 58% of respondents were satisfied with the consideration given to business demands by policymakers when establishing pertinent policies.
63% of companies surveyed stated that they are sufficiently knowledgeable about the EU-Vietnam Free Trade Agreement (EVFTA). Additionally, with no substantial change from the third quarter of 2022, nearly half of the respondents continued to say that the EVFTA was relevant to or very relevant to their firm. This most recent BCI demonstrates a decline in concerns about the EVFTA’s administrative processes and technical trade barriers, and an increase in understanding of the agreement.