European enterprises optimistic about Vietnam’s business environment

09:10 | 06/10/2018 Cooperation

(VEN) - New data from the Business Climate Index (BCI) of the European Chamber of Commerce in Vietnam (EuroCham) shows that European companies are more positive about doing business in Vietnam.

This growing confidence in Vietnam’s trade and investment environment can be seen in a 6 point jump from Q1 to Q2, 2018. The latest BCI results show that the sentiment of European business is at its strongest for 18 months.

EuroCham members also reported an optimistic outlook on a range of issues, from their own investment and profit projections to workforce levels and Vietnam’s macroeconomic outlook. Over 70 pct reported a positive situation for their enterprise in the last quarter, with 62 pct describing it as ‘Good’ and 12 pct as ‘Excellent’. Looking ahead to the next quarter, 64 pct believe their business situation will be ‘Good’ with a further 15 pct answering ‘Excellent’.

EuroCham members are also optimistic about Vietnam’s macroeconomic outlook, with 57 pct predicting ‘Stabilisation and Improvement’ in the next quarter and 34 pct believing that it will remain static, compared to just 10 pct anticipating a ‘Deterioration’. Meanwhile, over half (57 pct) believe that their business will see either a ‘Significant’ or ‘Moderate’ increase in staff next quarter, with a similar proportion (61 pct) anticipating either a ‘Significant’ or ‘Moderate’ increase in investment. Over three-quarters of EuroCham members (76 pct) believe that their orders or revenue will see a ‘Significant’ or ‘Moderate’ increase in quarter 3.

Nicolas Audier, Co-Chairman of EuroCham, said: “These results show once again that European companies and investors remain confident in Vietnam. The fact that EuroCham has now reached over 1,000 members – making us one of the largest foreign business associations in Asia – reinforces this positive message and shows that Vietnam is open for business as an attractive trade and investment destination.

“Our data also shows that European companies are sustainable as well as successful. The fact that almost 90 percent of our members believe CSR is important to their business operations underlines their long-term commitment to Vietnam and its people.

“These results come at an important time for EU-Vietnam relations. The EU-Vietnam Free Trade Agreement (EVFTA) should be ratified soon. On the cusp of this historic deal, which would boost trade and investment on both sides, we hope this positive message from EuroCham and its members will inspire the Government to continue opening its markets to foreign investment and improving its trade and investment environment.”

My Phung