An increasing number of European business leaders are confident of the future of their enterprise and of the economic climate in Vietnam, according to the EuroCham’s Business Climate Index (BCI) survey for the fourth quarter of 2018.
The BCI in Vietnam’s trade and investment environment, climbed to 84 points in the last quarter of 2018, returning to its joint-highest level since the end of 2016.
EuroCham members were more positive about their business situation in Q4, with 76% describing their business situation as either ‘Excellent’ or ‘Good’, up 8 percentage points compared to the previous quarter. Meanwhile, more than 7-out-of-10 business leaders were optimistic about the future, with 74% anticipating a positive start to 2019.
Q4 also saw a significant increase in optimism about Vietnam’s macroeconomic outlook, with 67% of the respondents predicting ‘Stabilization and Improvement’, up from 58% in Q3 of 2018. Just 9% of the respondents foresaw a worsening economic outlook.
The BCI also looks at the detail of business operations of EuroCham members, asking about issues from staffing and investment plans to revenue prospects for the next quarter. Over half of business leaders anticipate growing their workforce in Q1 of 2019, with 49 percent anticipating a ‘Moderate’ and 7% predicting a “Significant” increase.
EuroCham members also sent a positive signal about their future investment plans in Vietnam, with almost 6-out-of-10 planning either a ‘Moderate’ (47%) or ‘Significant’ (11%) increase. This is 6 percentage points higher than in the previous financial quarter.
“EuroCham’s latest BCI shows that optimism and confidence are growing across the board. Our members report strong and positive signals both about their own business prospects, but also about Vietnam’s wider trade and investment environment. This data is further evidence that Vietnam is going from strength to strength, and that there is a bright future for European trade and investment in Vietnam,” said Denis Brunetti, Co-Chairman of EuroCham.
Nicolas Audier, Co-Chairman of EuroCham, added: “Vietnam has been on the radar of European investors for some time, and their interest continues to increase as we approach the final stages of ratification of the EU-Vietnam Free Trade Agreement (EVFTA).
Our latest BCI shows that European companies are right to be optimistic about investing in Vietnam. Now, the challenge for both businesses and government is to redouble our efforts to get the EVFTA ratified and implemented as soon as possible.”
