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European companies more positive about business environment

Released at: 11:28, 04/10/2018

European companies more positive about business environment

Photo: news.zing.vn

Latest EuroCham survey reveals positive attitudes among European businesses in Vietnam.

by Khanh Chi

New data from the Business Climate Index (BCI) of the European Chamber of Commerce in Vietnam (EuroCham) shows that European companies are more positive about doing business in Vietnam.

This growing confidence in the country’s trade and investment environment can be seen in a six-point jump from the first to the second quarter of this year. The latest BCI shows that the sentiment of European businesses is at its strongest for 18 months and just two points below the all-time high in the third quarter of 2016.

EuroCham members also confirmed an optimistic outlook on a range of issues, from their own investment and profit projections to workforce levels and Vietnam’s macroeconomic outlook. Over 70 per cent reported a positive situation for their enterprise in the last quarter, with 62 per cent describing it as “Good” and 12 per cent as “Excellent”. Looking ahead to the next quarter, 64 per cent believe their business situation will be “Good” and 15 per cent “Excellent”.

EuroCham members are also optimistic about Vietnam’s macroeconomic outlook, with 57 per cent predicting “Stabilization and Improvement” in the next quarter and 34 per cent believing it will remain static, compared to just 10 per cent anticipating “Deterioration”. Meanwhile, over half (57 per cent) believe that their business will see either a “Significant” or “Moderate” increase in staff levels in the next quarter, with a similar proportion (61 per cent) anticipating either a “Significant” or “Moderate” increase in investment. More than three-quarters of EuroCham members (76 per cent) believe that their orders or revenue will see a “Significant” or “Moderate” increase in the third quarter.

For the first time, EuroCham asked its members about their views on corporate social responsibility (CSR). Eighty-seven per cent responded that CSR is important to their business operations in Vietnam and that the main motivations for CSR include “Brand Reputation” and “Customer/Environmental Concerns”.

“These results show once again that European companies and investors remain confident in Vietnam,” said Mr. Nicolas Audier, Co-Chairman of EuroCham. “The fact that EuroCham has now reached over 1,000 members - making us one of the largest foreign business associations in Asia - reinforces this positive message and shows that Vietnam is open for business as an attractive trade and investment destination.”

“Our data also shows that European companies are sustainable as well as successful. Almost 90 per cent of our members believe CSR is important to their business operations and this underlines their long-term commitment to Vietnam and its people.”

“These results come at an important time for EU-Vietnam relations. The EU-Vietnam Free Trade Agreement (EVFTA) should be ratified soon. On the cusp of this historic deal, which would boost trade and investment on both sides, we hope this positive message from EuroCham and its members will inspire the government to continue opening its markets to foreign investment and improving its trade and investment environment.”

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