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Economy
Oct 24, 2014 / 09:46

European enterprises extend business confidence in Vietnam

By Nguyen Ngan

Business Climate Indicator (BCI) in third quarter showed confidence and prospects of European business community in Vietnam growing. It is information about BCI survey by the European Chamber of Commerce in Vietnam (EuroCham) provided on October 23.

According to the survey, BCI in third quarter increased from 66 points to 74 points in the last quarter, on par with the first quarter of 2011 suggesting that the expectation of the company in the negotiation of Free Trade Agreements Vietnam - European Union (EVFTA). EuroCham survey also shows a problem with the top companies in Binh Duong province that was under control this year. 
Events surrounding the Vietnam visit of European Commission - President José Manuel Barroso and the FTA negotiations are taking place, BCI survey refers to the content and potential impact of the FTA, the FTA changes businesses can bring to Vietnam. More than half of the businesses surveyed said somewhat grasp topics being negotiated, but still want to get updated information about the FTA. 4/5 of feedback FTA is expected to change their business activities. 
 
Car assembly at Piaggio Vietnam Co., Ltd in Vinh Phuc Province. Photo: Huy Hung
Car assembly at Piaggio Vietnam Co., Ltd in Vinh Phuc Province. Photo: Huy Hung
 
Notably, compared with the previous quarter survey results, the number of businesses overall positive assessment of business conditions rose slightly, reaching 48% - the highest percentage of the amount of feedback. The biggest changes reflected in the business group feedback on the business moving in the negative direction has dropped from 21% in last quarter to 8% in the third quarter. Businesses identify business situation positively or negatively only 5%. 
When asked about the first incident occurred and whether the economic situation back to normal or not, 39% - the highest percentage of respondents indicated amount of businesses, the situation has been stabilized. In particular, the FTA is expected to be evident when the enterprises surveyed about business prospects in the coming months, 62% (about two thirds of enterprises) said business prospects to be good in next quarter. 
For comparison, the BCI survey also identified by EVFTA negotiated on how to be able to balance business with similar initiatives undertaken by the trade partners of Vietnam in areas such as South Korea and Japan. More than half of the number of responses - the highest proportion, EVFTA expectations will be very helpful to have a correlation with other FTAs​​. "When considered together two results, we see very clearly that the majority of businesses have optimistic outlook for the future, EVFTA results will provide a positive business environment" - CEO of EuroCham Csaba Bundik said, "We see a clear trend that the signing and implementation of EVFTA on important step would be important to ensure that the preparations were not made in vain."

BCI survey showed the previous quarter, 46% of businesses expect stable or improving the macro-economic context, then into the third quarter, the figure rose to 61%. Only 24% said the situation did not change and 15% predicted economic downturn. 

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