EuroCham: Vietnam’s business climate improving
The 14th quarterly EuroCham Business Climate Index (BCI) survey released on February 25 showed that business confidence and outlook among European businesses in Vietnam improved remarkably.
For the first time since 2012 the index has exceeded the 50-point threshold to reach 59 points, affirming European enterprises’ confidence in the Vietnamese market, it said.
According to the European Chamber of Commerce in Vietnam (EuroCham), the remarkable rise is likely due to the increasing optimism in the business outlook and turnover during the Lunar New Year festival, plus falling inflation concern, enhanced trust in macroeconomic prospects and a hope for the conclusion of a feasible and effective Free Trade Agreement (FTA) between Vietnam and the EU.
Nearly half of the businesses involved in the survey operate in the service sector, one quarter in the manufacturing sector, one fifth in trade, and the remaining in other sectors.
The number of respondents reporting satisfactory business outcomes rose from 38% last quarter to 45%. This showed that business operations have much improved.
Businesses said that they will increase investments in Vietnam as the country boasts a large market size and effective business opportunities, low labour cost and a young population.
The positive development in investment plans and expected business orders has translated into increased recruitment plans, with many respondents expecting to slightly increase their headcounts.
EuroCham Chairman Preben Hjortlund commented that he is glad to see the BCI reach 59.
EuroCham will continue to work with the Vietnamese Government to create practical benefits for the business community in order to ensure this positive progress, he stressed.
Since its establishment in 1998, EuroCham has grown from 60 members to represent more than 750 European businesses, counting among its supporters many of the world's leading enterprises.
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