European businesses confident about operations in Vietnam

16:24 | 11/12/2016 Economy- Society

(VEN) - The European Chamber of Commerce (EuroCham) in Vietnam’s business climate index (BCI) for the third quarter of 2016 shows positive sentiment among EuroCham members about Vietnam’s business environment set at a level of 84, up 10 levels from the second quarter.  

The Piaggio Group has continued increasing their investment in Vietnam

About 71.5 percent of the surveyed described their current business situation as excellent or good, while only 5.5 percent described it as not good, and no respondent answered very poor. Assessments are also positive about the future, with 16.5 percent of the surveyed answering “excellent” and 64.2 percent “good” when asked about their business outlook in the fourth quarter. Only 2.7 percent of responses were negative.

Approximately 42 percent of surveyed businesses intend to maintain their level of workforce, 52 percent intend to increase the number of employees, and only 2.8 percent intend to reduce employment.

Nearly 30 percent of surveyed businesses said that conditions are favorable for investors in the field of clean and renewable energy, while 27 percent answered “tax incentives”. “Liberalization of the State-controlled electricity sector” was selected by 20 percent of the surveyed and “attractive feed-in tariffs” by 18 percent. Access to finance for renewable energy projects and regulatory changes were assessed by the surveyed as less attractive.

Tomaso Andreatta from the Eurocham’s Green Growth Sector Committee said that the availability of clean and renewable energy is important to activities of European businesses in Vietnam. Vietnam has promulgated a number of regulations on clean energy, but has no law on renewable energy, including solar energy.

“EuroCham is willing to assist the Vietnamese government to prepare and implement necessary regulations and continue encouraging open dialogues between all concerned parties to find the best solutions for the solar energy industry,” Tomaso Andreatta said.

EuroCham Chairman Michael Behrens said that the results for the third quarter show positive expectations for the near future and consistent satisfaction with the present situation. Surveyed businesses maintain a positive view on the Vietnamese market and their business operations in the country, a result that does not differ from EuroCham’s last survey. This is a good sign for the current implementation of the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to strongly enhance European business and investment.

Asked about Vietnam’s macroeconomic outlook in the fourth quarter of 2016, 55.4 percent of surveyed European businesses believed that the situation would not only be stable but also be improved; only 4.6 percent predicted a decline, and 40 percent expected that the situation would remain unchanged.

Lan Ngoc