EU firms show optimism about Vietnam’s business climate in 2021

The latest Business Climate Index (BCI) unveiled by the European Chamber of Commerce (EuroCham) in Vietnam on February 3 indicates that EU companies in Vietnam ended 2020 with overall optimistic view about the country's’s business climate.

EU firms show optimism about Vietnam’s business climate in 2021 hinh anh 1

The latest Business Climate Index (BCI) by the European Chamber of Commerce (EuroCham) in Vietnam indicates that EU companies in Vietnam ended 2020 with overall optimistic view about the country’s business climate. Illustrative photo. 

The BCI picked up 6 points in the fourth quarter of 2020 to reach 63.6 percentage points for the whole year, the highest since the outset of COVID-19. The index stood at a record low of 27 percentage points in the first quarter of last year, following the first wave of COVID-19 in Vietnam.

The BCI steadily grew throughout the year as the result of Vietnam’s successful containment of the novel coronavirus and the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) which took effect in August. The two factors have improved confidence in local economy and boost business activities.

According to the BCI report, about 57 percent of surveyed EuroCham members believed the Vietnamese economy is likely to stabilise and improve in the first quarter of 2021, compared to 39 percent in the third quarter of last year.

A more optimistic sentiment is also seen among European business leaders compared to the last three month of 2020. One third of the surveyed company members forecast that the number of their employees would increase in this quarter while 57 percent planned to maintain the same level of headcount. Some 30 percent believed investment is likely to expand and 43 percent expected increases in the volume and revenue of orders.

 

Some 70 percent said they have benefited from the EVFTA since the trade deal entered into force last year. About 33 percent, however, said public administrative procedures are likely to be their biggest obstacle to maximize advantages from the pact.

EuroCham Chairman Nicolas Audier said the latest BCI provides a positive outlook on Vietnam’s business climate and perspectives for 2021. Confidence of the business community on the economy has been strengthened over the last year, showing the Vietnamese government’s swift response to COVID-19 and promotion of the EVFTA, he said, adding that these would lay basis for the country’s economic growth over the next five years.

European business leaders expect growth in both investment and trade brought about by the EVFTA, he continued, they also expect that several barriers would be removed to ensure the smooth and successful implementation of the trade deal./.VNA

Digital transformation in Vietnam will be accelerated thanks to EVFTA

Digital transformation in Vietnam will be accelerated thanks to EVFTA

Experts believe that EVFTA will be an opportunity for Vietnam to speed up digital transformation, but say Vietnam needs to change its mindset.

 
 

Other News

.
Foreign retailers come, Vietnamese billionaires struggle to survive
Foreign retailers come, Vietnamese billionaires struggle to survive
FEATUREicon  16/07/2021 

The increasing presence of foreign giants has put great pressure on domestic retailers.

HCM City applies ‘production-and-quarantine’ model
HCM City applies ‘production-and-quarantine’ model
FEATUREicon  16/07/2021 

Many enterprises in HCM City are operating under a so-called production-and-quarantine model, i.e. maintaining production while strictly following quarantine rules amid the Covid-19 outbreak.

How to harmonize the two 'fronts'?
How to harmonize the two 'fronts'?
FEATUREicon  15/07/2021 

There must be satisfactory solutions for the sake of the economy and the country's reputation in international relations because the pressure to open up, for example, through accepting vaccine passports, is great.

Vietnam Airlines to raise over $346 million through share issuance
Vietnam Airlines to raise over $346 million through share issuance
BUSINESSicon  15/07/2021 

At the General Meeting of shareholders held on Wednesday morning, Vietnam Airlines JSC (HVN) approved a plan of raising VND8 trillion (US$346.2 million) through share issuance. 

Two updated scenarios put forward for Vietnamese economy until year’s end
Two updated scenarios put forward for Vietnamese economy until year’s end
BUSINESSicon  15/07/2021 

The Central Institute for Economic Management (CIEM) has revised two scenarios for the Vietnamese economy by the end of the year, with the GDP rate forecast to expand by 5.9% and 6.2%, respectively.

Businesses strive to maintain production amid lockdown in HCM City
Businesses strive to maintain production amid lockdown in HCM City
BUSINESSicon  15/07/2021 

When HCM City went into lockdown under Government Directive 16 on July 9, many businesses and manufacturers prepared plans to set up temporary accommodations for their workers to avoid the spread of coronavirus and maintain production.

Borrowing US$5 billion to invest in stocks: worries behind the record
Borrowing US$5 billion to invest in stocks: worries behind the record
FEATUREicon  15/07/2021 

The number of newly-opened securities accounts opened in the last 18 months is equal to the total number of the previous 20 years.

VIETNAM BUSINESS NEWS JULY 15
VIETNAM BUSINESS NEWS JULY 15
BUSINESSicon  15/07/2021 

The State Bank of Vietnam set the daily reference exchange rate at 23,203 VND per USD on July 15, down 1 VND from the previous day.

VN stock market hits record, big names rise
VN stock market hits record, big names rise
FEATUREicon  14/07/2021 

The Vietnamese stock market in the first half (H1) of 2021 broke many records.

Aviation sector eyes recovery in 2023-24
Aviation sector eyes recovery in 2023-24
BUSINESSicon  14/07/2021 

Vietnam's aviation market is hoped to recover in 2023-24, according to a Vietnam Airlines' representative.

Businesses ask banks to ease interest rates as promised
Businesses ask banks to ease interest rates as promised
FEATUREicon  15/07/2021 

Bank loan interest rates are becoming a heavy burden on businesses, which have been hit hard by Covid-19 for more than a year.

Exporters face slew of difficulties due to COVID
Exporters face slew of difficulties due to COVID
BUSINESSicon  14/07/2021 

Though exports remain strong, several sectors face difficulties due to the COVID-19 pandemic and require support from the Government if they are to sustain the growth, experts said.

Ministry proposes reduction in insurance deposits for travel firms
Ministry proposes reduction in insurance deposits for travel firms
BUSINESSicon  14/07/2021 

The Ministry of Culture, Sports and Tourism wants to reduce the value of insurance deposits by 80 per cent to help travel companies that are struggling because of COVID-19.

Mekong Delta: attractive destination for renewable energy development
Mekong Delta: attractive destination for renewable energy development
BUSINESSicon  14/07/2021 

Taking advantage of its natural conditions and investment attraction policies, the Cuu Long (Mekong) Delta has become a destination for investors in renewable energy projects.

Vaccine passport: certificate could save the tourism industry
Vaccine passport: certificate could save the tourism industry
FEATUREicon  14/07/2021 

The Covid-19 outbreaks have hit the tourism industry especially hard. Travel firms are looking forward to the new vaccine passport, which they believe could save the industry.

Banks agree to reduce lending interest rates from July
Banks agree to reduce lending interest rates from July
BUSINESSicon  14/07/2021 

Commercial banks have agreed to slash the lending interest rate in order to help businesses and people overcome the difficulties caused by the Covid-19 crisis.

Industrial real estate market hit hard by fourth Covid wave
Industrial real estate market hit hard by fourth Covid wave
FEATUREicon  14/07/2021 

The latest Covid-19 outbreak, which began in late April, has slowed down the industrial real estate market. There have been only small-scale projects and no large scale one announced.

Construction ministry gives opinion on transfer of part of multi-billion dollar super-project
Construction ministry gives opinion on transfer of part of multi-billion dollar super-project
FEATUREicon  14/07/2021 

The Hanoi Construction Department has sent a dispatch to the Ministry of Construction (MOC), asking for guidance on procedures that parties have to follow to transfer a part of the Ciputra urban area project.

Banks lending big to keep agriculture sector ticking
Banks lending big to keep agriculture sector ticking
BUSINESSicon  14/07/2021 

According to the State Bank of Vietnam’s department of credit for economic sectors, as of April credit injected into rural and agricultural development had reached VND2.3 quadrillion ($100 billion), or 24.6% of the banking sector’s total loans.

IFC helps boost green credit in Vietnam
IFC helps boost green credit in Vietnam
BUSINESSicon  14/07/2021 

The International Finance Corporation (IFC) has provided a 100 million USD long-term loan for the Orient Commercial Joint Stock Bank (OCB) to increase the private sector’s contributions to green and sustainable growth in Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN