Foreign investors still hopeful about Vietnam business outlook
Foreign investors still hopeful about Vietnam business outlook
American and European businesses have placed their trust in Vietnam in its fight against the Covid-19 pandemic as well as in economic recovery prospects.
The US provides Vietnam with US$4.5 million to fight Covid-19
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Production disruption and suspension
Over the past few weeks, a number of suppliers for global giants, such as Nike Inc. and Adidas, have reported operation suspensions in Vietnam in light of restrictions to contain the pandemic. Some garment and textile enterprises, such as Feng Tay Enterprise Co., Ltd., Pou Chen Corp. and Sports Gear Co., Ltd., have also suspended some operations in Vietnam.
Phan Thi Thanh Xuan, deputy chair of the Vietnam Leather, Footwear and Handbag Association, said most of the factories that supply Nike and Adidas in Vietnam have experienced supply chain disruptions, hampering production.
According to Bloomberg, trade in goods has been a buffer zone for the global economy during the pandemic, especially for heavily export-oriented Asian economies. However, the Delta variant has hit Southeast Asia hard, underscoring the tough choices for policy makers who are balancing vaccinations and travel restrictions while trying to keep their economies developing.
Adam Sitkoff, executive director of the American Chamber of Commerce (AmCham) in Hanoi, said many AmCham members are facing difficulties, especially those in Ho Chi Minh City and southern provinces, having to adjust their plans to ensure safe production in response to the pandemic.
New data from the Business Climate Index (BCI) of the European Chamber of Commerce in Vietnam (EuroCham) shows that the index dropped almost 30 points in the second quarter of the year, reflecting increased pessimism about the short-term outlook.
AmCham Vietnam-HCMC donates 250,000 surgical face masks to the Ho Chi Minh City Department of Health
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Confidence about future prospects
Mary Tarnowka, executive director of AmCham Vietnam in Ho Chi Minh City, said the US business community highly appreciated Vietnam’s results in pandemic prevention and economic development, as well as the country’s close cooperation in strengthening exchanges and discussions to overcome business difficulties. Currently, US businesses still place trust in Vietnam in the fight against the pandemic as well as in economic recovery prospects, she said.
Sitkoff said AmCham will continue to call for support and donations from members to help medical staff and households affected by the pandemic. This is a challenging time for all businesses, and their leaders have an obligation to support each other, he said.
According to the BCI, EuroCham members remain optimistic about future prospects of their own companies. About 56 percent of respondents anticipate an improved or neutral performance in the third quarter, while 80 percent plan to maintain or increase their employees and investment.
EuroCham Chairman Alain Cany said EuroCham members include some of the world’s leading companies in the pharmaceutical sector, medical equipment and logistics that have made long-term investments in Vietnam and pledged to support the country in the current difficult period. In particular, EuroCham members are ready to help Vietnam launch a mass vaccination drive, Cany said.
