European businesses’ confidence on Vietnam outlook reaches highest since Covid-19 emergence

Vietnam is on the right path to achieving its twin goals of protecting health and promoting economic growth, stated Chairman of the European Chamber of Commerce in Vietnam (EuroCham).

Business Climate Index (BCI) measuring sentiment of European enterprises in Vietnam hit 73.9 points in the first quarter of 2021, the highest score recorded since the third quarter of 2019, before the Covid-19 pandemic took toll on global trade and investment.

 EuroCham's BCI movement. 

The EuroCham revealed the latest data, saying this continues a positive upward trend in the index, with the score rising more than 47 points over the last 12 months.

“The BCI confirms once again that Vietnam is open for businesses. While countries continue to struggle with the impact of Covid-19, Vietnam has ensured that companies here can continue their operations as close to normal as possible. This is helping to drive economic growth and fuel the confidence of European business leaders,” EuroCham Chairman Alain Cany said.

“Therefore, it is no surprise that EuroCham members are positive about the future of their own companies and optimistic about the prospects for Vietnam’s trade and investment environment. The BCI has now almost climbed back to pre-Covid levels – this is a remarkable achievement and further evidence that Vietnam is on the right path to achieving its twin goals of protecting health and promoting economic growth,” he added.

The data came after Vietnam recorded strong economic growth of 4.48% at the start of 2021, and this is reflected in the optimistic outlook of European enterprises. When asked about the prospects of Vietnam’s business environment in the next quarter, 67% predicted either ‘excellent’ or ‘good’ – a 12% increase compared to the previous quarter.

 Production of electric components at A Chau Industry Company in Thuong Tin district. Photo: Thanh Hai
 

Meanwhile, business leaders are also more optimistic about their own companies. More than two-thirds (68%) predict that their orders and revenue will ‘maintain or increase’ over the next three months. That’s a 25% increase compared to the fourth quarter of 2020.

EuroCham members are also seeing a positive effect from the EU-Vietnam Free Trade Agreement (EVFTA) which entered into force on August 1, 2020. Since it was implemented, more than 60% have benefited from the agreement. However, business leaders continue to report that ‘administrative procedures’ are the biggest barrier preventing them from utilizing the EVFTA.

Thue Quist Thomasen, CEO of YouGov Vietnam, the agency conducting the BCI survey, said the fact that more business leaders are anticipating a rise in their headcounts and investment plan is – in itself – a vote of confidence in Vietnam’s long-term prospects. It shows that companies are investing in their workforce and their businesses now in anticipation of a strong and prosperous 2021.”

The BCI is a regular barometer of EuroCham members and their perceptions of the business environment. Each quarter, it tracks the performance of EuroCham’s member companies and their perceptions of the economic outlook in Vietnam. The fieldwork and data collection for the BCI is conducted by YouGov Vietnam.

Hanoitimes

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

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.

 
 

Other News

.
Investment into local start-ups expected to rise this year
Investment into local start-ups expected to rise this year
BUSINESSicon  01/06/2021 

The investment capital into Vietnamese start-ups this year would see a breakthrough despite a year-on-year decrease of 48 per cent in 2020 to reach US$451 million.

New master plan for seaports needed to further boost economic development
New master plan for seaports needed to further boost economic development
BUSINESSicon  01/06/2021 

A new master plan for seaports is needed to further boost the country’s socio-economic development in the rapid international integration process, experts have said.

Realty tax needs revamp to ensure fairness
Realty tax needs revamp to ensure fairness
BUSINESSicon  31/05/2021 

Realty tax not only creates sources of collection for the State budget but also is a policy able to spur growth and reduce bribery related to land. Vietnam does have realty tax.

Market will continue to breach new highs, but investors should be more cautious: experts
Market will continue to breach new highs, but investors should be more cautious: experts
BUSINESSicon  31/05/2021 

The market witnessed strong buying interest last week and analysts from many securities firms expect indices to continue to hit new highs, but have warned investors to be cautious.

E-commerce changing domestic retail property market
E-commerce changing domestic retail property market
BUSINESSicon  31/05/2021 

The shift toward e-commerce due to the COVID-19 pandemic has brought challenges to Vietnam’s retail property market, according to Savills Vietnam.

Customs sector helps exporters utilise benefits of FTAs
Customs sector helps exporters utilise benefits of FTAs
BUSINESSicon  30/05/2021 

The customs sector will continue to introduce measures to help Vietnamese enterprises fully tap the benefits brought about by FTAs Vietnam has signed with foreign partners, an official from the General Department of Vietnam Customs has said.

CPI inches up 0.16 percent in May
CPI inches up 0.16 percent in May
BUSINESSicon  30/05/2021 

Vietnam’s consumer price index (CPI) in May was up 0.16 percent agaisnt April and 2.9 percent from last year, reported the General Statistics Office (GSO) on May 29.

Major transport infrastructure works to be started in June
Major transport infrastructure works to be started in June
BUSINESSicon  30/05/2021 

Four major transport projects will be kicked off in June, announced the Ministry of Transport at a conference on May 28.

Lending interest rates about to increase
Lending interest rates about to increase
BUSINESSicon  30/05/2021 

Recently, the interbank interest rates suddenly jumped, causing many people to worry whether bank lending rates will increase in the coming time while the business and production activities have been facing many difficulties due to Covid-19.

HCMC to try reigniting delayed BT projects
HCMC to try reigniting delayed BT projects
BUSINESSicon  30/05/2021 

Financial shortcomings of investors combined with the government’s failure to offer support are some of the reasons multiple BT infrastructure projects in HCMC are being delayed indefinitely, experts said. 

Firms should facilitate Gen Z to develop
Firms should facilitate Gen Z to develop
BUSINESSicon  30/05/2021 

Enterprises should consider applying new thoughts or amend regulations to meet the demand of Gen Z, including those born in 1996-2010, and create favorable conditions for them to develop as they will be an important part of the country’s workforce.

Vietnam credit growth forecast to hit 14% in 2021: Fitch Solutions
Vietnam credit growth forecast to hit 14% in 2021: Fitch Solutions
BUSINESSicon  30/05/2021 

A GDP growth of 5.8% in 2021, nearly double the 2.9% growth last year, would boost credit demand.

VIETNAM BUSINESS NEWS MAY 31
VIETNAM BUSINESS NEWS MAY 31
BUSINESSicon  31/05/2021 

New COVID-19 outbreak puts brakes on trade, transport

More Vietnamese agro products to be available on e-commerce platforms
More Vietnamese agro products to be available on e-commerce platforms
BUSINESSicon  29/05/2021 

Following successful sales of lychees, efforts have been made to sell other Vietnamese farm produce on e-commerce platforms, the Nong nghiep Viet Nam (Vietnam Agriculture) newspaper has reported.

Debt burden risks budget stability
Debt burden risks budget stability
BUSINESSicon  29/05/2021 

Vietnam has had outstanding economic development in recent decades, even through the pandemic so far. 

Paint makers’ fresh coat of progress
Paint makers’ fresh coat of progress
BUSINESSicon  29/05/2021 

Having one of the fastest-growing paint and coating industries in the Southeast Asian region, Vietnam is mainly dominated by international paint and coating groups, but it is now witnessing a refresh as local makers attempt to gain some traction.

Many factors behind rising inflation
Many factors behind rising inflation
BUSINESSicon  31/05/2021 

The 2020 Consumer Price Index (CPI) in Vietnam was contained at 3.23%, but which will be difficult to maintain at a target of 4% in 2021.

'Black-credit' lenders pose serious threat to borrowers
'Black-credit' lenders pose serious threat to borrowers
FEATUREicon  28/05/2021 

Experts have repeatedly rung the alarm bell over black credit, which is causing serious consequences to families and society.

70% of VN adults use banking services but many lack access to credit
70% of VN adults use banking services but many lack access to credit
BUSINESSicon  30/05/2021 

According to the State Bank of Vietnam, by 2020, 70% of adults in Vietnam had a bank account, but nearly half of them did not have access to credit. 

Vietnam stops importing pigs from Thailand
Vietnam stops importing pigs from Thailand
BUSINESSicon  29/05/2021 

The Ministry of Agriculture and Rural Development has sent a document to the Thai Embassy on the suspension of imported live pigs from Thailand into Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN