Confidence of European businesses in VN on the rise
Confidence of European businesses in VN on the rise
Business confidence and outlook among European businesses in Viet Nam continued to rise, according to 16th quarterly EuroCham Business Climate Index (BCI) survey.
The survey, conducted in September 2014 and released yesterday, revealed that in the third quarter, the BCI climbed from 66 up to 74, approaching the previous levels in the first quarters of 2011. The rise was influenced by high expectancy on the current negotiations of the EU-Viet Nam Free Trade Agreement.
"We see a clear trend where the European business community are excited and are gearing up for the future. The signing of and importantly the realisation of the FTA will be crucial steps in assuring that these preparations have not been made in vain, EuroCham executive director Csaba Bundik said.
Compared to the results of previous quarter's survey, nearly half of respondents assessed their current business situation as positive while only 5 per cent found the business to be very poor.
Notably, the major change came from the respondents that perceived the business situation as negative, having declined from 21 per cent last quarter to a single digit at 8 per cent this quarter.
Of those surveyed, the majority had a positive business outlook and that a majority also perceived a future FTA to assist in realising this positive business environment.
According to the survey, up to 61 per cent of Eurocham's members thought the macroeconomics situation in Viet Nam would stabilise and improve, 24 per cent said that the situation would not change while 15 per cent expected it to deteriorate.
Meanwhile, the estimations on inflation rate made by participation in third quarter was higher, moving from 4.26 per cent to 4.61 per cent.
With high expectations on both macroeconomics stability and improvement as well as general expectations on improved business outlook, a moderate rise in inflation was a logical expected outcome, the survey said.
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