EuroCham says Vietnam’s business climate is improving
EuroCham says Vietnam’s business climate is improving
Business outlook among European businesses in Vietnam improved for the first time since 2012, the European Chamber of Commerce in Vietnam stated in its latest Business Climate Index (BCI) survey released Tuesday.
The 14th quarterly EuroCham Business Climate Index (BCI) survey, conducted in February 2014, shows that business outlook among European businesses in Vietnam has for the first time surpassed the 50-point threshold to reach 59, which the EuroCham said has “affirmed European enterprises’ confidence in the Vietnamese market.”
The number of EuroCham members participating in the survey which said the business environment in Vietnam has “remarkably improved” increased from 38 percent of the last quarter of last year to 45 percent, according to the report.
Meanwhile, those with a positive assessment of the business outlook also went from 44 percent in the previous quarter to 49 percent.
The number of reported investment plans is rising with the number of respondents expecting to increase investments in Vietnam growing from 41 percent last quarter to 78 percent this quarter.
In line with this development, the expected number of business orders has continued to grow to 70 percent from 67 percent and 61 percent of the past two quarters, respectively.
Respondents remain somewhat confident in the macroeconomic outlook, with 47 percent expecting a ‘stabilization and improvement’ of the situation.
The respondents also forecast that the country’s inflation rate would be 3.68 percent in the future. Compared to last quarter’s estimate of 4.69 percent, this represents a considerable improvement.
EuroCham Executive Director Csaba Bundik hailed the 59 business climate index in this quarter “good news”. The positive index indicated a clear improvement and that European businesses are regaining confidence in the Vietnamese market, he remarked.
The BCI is an indicator for economic activity in Vietnam prepared by the European Chamber of Commerce Vietnam.
The index provides a regular barometer of the business sentiment among European companies operating in Vietnam. It is designed to provide early signals of turning points in economic activity and to track movements in business confidence over time.
The EuroCham was established in 1998 and has since grown from 60 members to represent more than 750 European businesses, among which there are many of the world's leading enterprises.
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