Vietnam’s resilience in face of global turbulences incredible: EuroCham chairman

Vietnam is heading towards a golden era, with a wave of investment expected over the next 7-8 years, said Bruno Jaspaert, chairman of the European Chamber of Commerce in Vietnam (EuroCham), in a talk with the Vietnamese government's news portal.

What impresses you most about Vietnam in the year of the dragon, 2024?

As a foreign investor in Vietnam, I’m particularly impressed by two things.

First, Vietnam’s ability to “swim against the current” in overcoming super typhoon Yagi, the strongest typhoon recorded in Asia in 2024 and the second strongest worldwide.

Had typhoon Yagi hit any country in Europe, we would have seen greater losses and taken longer to recover. I admire Vietnam’s ability to face such challenges head-on, especially the Vietnamese government’s determination to achieve 7% growth, despite international organizations lowering their forecasts. This resilience is deeply embedded in Vietnam’s economy and culture.

Second, Vietnam has successfully restored confidence among foreign businesses. According to EuroCham’s latest report, the Business Confidence Index (BCI) reached its highest level in more than two years, hitting 61.8 points in the fourth quarter of 2024, an increase of 33% year-on-year. This demonstrates the optimism within the European business community about Vietnam’s economic prospects.

This reflects Vietnam’s incredible resilience in the face of global turbulences and underscores the country’s growing prominence as a regional trade and investment hub. Foreign investors remain confident in Vietnam’s economic outlook, political stability, and government plans to streamline the administrative apparatus to boost efficiency.

Finally, a quarter of businesses surveyed indicated they plan to invest or expand operations in Vietnam, and 75% of European business leaders say they would recommend Vietnam as an ideal investment destination. This is a clear sign of growing confidence in Vietnam, particularly among European businesses, which bodes well for the country’s future.

What are your expectations for the Vietnamese economy in the year of the Snake, 2025?

I expect Vietnam to continue its growth trajectory, thanks to its ambitious goals for sustainable development and digital transformation. More importantly, Vietnam’s location and the current geopolitical situation play a major role in shaping its future.

Vietnam is heading towards a golden era, with a wave of investment expected over the next 7-8 years. The country will become a key manufacturing and logistics hub for the ASEAN region.

The Vietnam-EU Free Trade Agreement (EVFTA) and favorable FDI policies will further facilitate market expansion and innovation. Vietnam’s location is a strategic advantage, and in the years ahead, regardless of global events, it will play a crucial role in regional and global trade.

What are your recommendations to improve Vietnam’s business environment, especially for European investors?

There’s no quick fix, but we can focus on the key barriers that EuroCham members have identified: complex licensing processes, administrative burdens, and an uncoordinated tax system.

First, the foundation for every economy should be the rule of law. Laws and policies must be clear and simplified. Foreign investors want simplicity. Businesspeople want to understand exactly what’s required and easily comply with regulations.

I fully support the government’s plan to streamline its administrative apparatus to make business processes more efficient.

What recommendations do you have for attracting more high-quality FDI, particularly in high-tech and environmentally friendly sectors?

I believe tourism, especially sustainable tourism, will thrive as Vietnam becomes one of the most popular destinations for foreign tourists. I’m eager to introduce travelers to Vietnam, it’s an amazing place for vacations.

Vietnam’s geographical location will also boost the development of manufacturing, supply chains, and logistics to a greater extent than ever before. I predict that the digital transformation sector will see new opportunities, although this will depend on regulatory adjustments.

Lastly, renewable energy could emerge as a booming sector once legal barriers are removed, opening the door for foreign investment to flow in.