09:16 | 30/06/2015 Investment
(VEN) - According to the 18th Business Confidence Index (BCI) survey by the European Chamber of Commerce in Vietnam (EuroCham), published on June 4, European businesses were fairly confident about the current and future business environment.
Many European businesses have invested in Vietnam but have exported their products to third countries
Eurocham’s survey addressed issues related to the changes in the Enterprise Law and the Investment Law, as well as the application of the new Migration Law. About 63 percent of European businesses in Vietnam said that changes in the enterprise and investment laws would benefit them and would not significantly affect their operations. Twenty percent of the surveyed businesses said that they did not know about these changes, while nine percent forecast that these changes would not bring any benefits, while six percent were worried that these changes would hinder their operations in Vietnam.
When compared with the end of 2014, the number of European companies in Vietnam who responded positively on the current business climate fell from 52 to 45 percent, with two percent claiming that their operations were very bad. In addition, the number of European businesses that claimed that their facilities in Vietnam were running very well increased by 11 percent. Nearly two-thirds, or 63 percent of European businesses believed that Vietnam’s macro economy would be stable and improve, compared with 59 percent in 2014, and that the business environment would be positive in the future.
Nearly half, 48 percent of European businesses, said they intended to employ more people, while 32 percent would at least maintain their current workforce, 41 percent are looking to increase their investment and 35 percent would maintain the current investment. Most European businesses expected that their orders and revenues from Vietnam would increase.
Asked about their difficulties in applying the new Vietnamese Migration Law, 49 percent of European companies said that they had not faced any difficulties, while 39 percent said that they had faced problems, while 12 percent said that they were not subject to the law. Regarding visa and temporary residence procedures, 56 percent said that they needed far more transparent guidance from agencies and service companies, while 44 percent said that the new procedures were transparent and applicable; nine percent said that migration application duration was acceptable; but only four percent believed Vietnam’s procedures were transparent and more workable than other countries.
Almost a quarter, 24 percent, of European businesses in Vietnam said that the new migration procedures were too opaque and varied for no reason between different localities, while 20 percent said that the new Migration Law failed to match the content already laid out in Labor Law and related circulars and decrees.