Bci

European business leaders optimistic about Vietnam’s economic outlook

February 3, 2021 by vov.vn

In line with this, the BCI climbed six points during the final quarter of 2020 to reach 63.6, ending last year on a high. The index therefore rose by a total of 37 points over the course of last year following a drop to a historic low in the first quarter due to the initial outbreak of COVID-19. Since then, the BCI has been able to maintain positive growth following the country’s successful handling of the pandemic, along with the implementation of the EU-Vietnam Free Trade Agreement (EVFTA) which served to improve confidence whilst boosting business.

When asked about the nation’s economic prospects moving into the next quarter, 57% of EuroCham members anticipate “stabilization and improvement” during the opening three months of the year, a sharp rise in comparison to 39% in the third quarter of 2020, a rise in confidence of 18%.

With regard to the prospects of their own enterprises, European business leaders proved to be far more positive and optimistic in the fourth quarter. One third of EuroCham members predicted a rise in their headcount during the next quarter, with a further 57% expecting to maintain the same level. Meanwhile, 30% anticipate a rise in investment and 43% predict a rise in orders and revenue.

With the EVFTA now in force, EuroCham also polled members on their perceptions of the agreement and its impact on their business operations. Encouragingly 70% said that their business had already benefitted from the EVFTA since the deal came into force on August 1, 2020. Despite this, 33% also said that “administrative procedures” were the main barrier for them to fully utilise the EVFTA, indicating the importance of monitoring the implementation of this agreement.

“Our latest BCI paints a positive picture of Vietnam’s business environment as we look ahead to 2021. The growth in confidence we have seen over the last 12 months is a testament to the government’s swift and effective handling of COVID-19, and creates a strong foundation for the next five years of Vietnam’s socio-economic growth,” said Nicolas Audier, chairman of EuroCham.

“Meanwhile, our members report a positive impact of the EVFTA since it entered into force six months ago. European business leaders are looking forward to the increased trade and investment that the agreement will bring, while also highlighting some of the issues which need to be addressed to ensure its smooth and successful implementation,” he added.

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

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

May 4, 2021 by vietnamnet.vn

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

European companies in Vietnam say confidence en route to pre-pandemic levels

April 30, 2021 by e.vnexpress.net

It rose 10.3 percentage points in the first quarter from the previous quarter to 73.9 percent, according to a survey released by the European Chamber of Commerce in Vietnam (EuroCham).

This is the fourth straight quarterly increase since the index plunged to a historic low of 26.7 points in the first quarter of last year due to Covid-19.

“The Business Climate Index confirms once again that Vietnam is open for business,” EuroCham Chairman Alain Cany said.

While countries continue to struggle with the impact of Covid, Vietnam has ensured that companies could continue to operate as close to normal as possible, and this is driving the confidence of European business chiefs, he added.

Sixty seven percent of respondents said their business outlook for the second quarter is either “excellent” or “good”, up 12 percentage points from this quarter.

Forty one percent expected their payroll to expand in the second quarter.

“The fact that more business leaders are anticipating a rise in their headcount and investment plans are a vote of confidence in Vietnam’s long-term prospects,” Thue Quist Thomasen, CEO of YouGov Vietnam, which conducted the survey, said.

Over 60 percent of EuroCham members have benefited from the EU-Vietnam Free Trade Agreement since it came into effect in August last year.

European firms optimistic about Vietnam’ business climate

April 30, 2021 by en.nhandan.org.vn

The index reached 73.9 points in Q1, the highest score recorded since Q3 of 2019, before the COVID-19 pandemic impacted the global trade and investment system.

The BCI survey also showed the sustained optimism about the business climate, up 47 points over the last 12 months.

When asked about Vietnam’s business climate outlook for Q2 this year, 67% of the European enterprises considered it “excellent” or good“, rising 12% from Q1.

The respondents were also more optimistic about their businesses’ performance in Vietnam this year. More than two-thirds of them, equivalent to about 68%, expected their orders and revenue will maintain the same level or increase in the next three months, up 25% from Q4 of 2020.

EuroCham members noted that improvements thanks to the EU-Vietnam Free Trade Agreement (EVFTA), which took effect on August 1 last year, has created favourable conditions for enterprises.

However, business leaders also expressed their concern about certain barriers like administrative procedures that will continue hampering their firms’ activities in the time ahead.

According to EuroCham Chairman Alain Cany, this time’s BCI indicates that Vietnam is continuing to open its economy though many countries are still hit hard by the COVID-19 pandemic. Vietnam is capable of ensuring businesses’ normal operations without many disruptions, which is helping fuel economic growth and European business leaders’ confidence.

The BCI rebounding to the pre-pandemic levels evidences a considerable achievement and that Vietnam is moving in the right direction to achieve the twin targets of combating COVID-19 and promoting economic growth, he said.

The BCI is a regular barometer of the business sentiment among European companies operating in Vietnam. Each quarter, it tracks the performance of EuroCham’s member companies and their perceptions of the economic outlook in Vietnam.

European firms optimistic about Vietnam’s business climate

May 1, 2021 by sggpnews.org.vn

A foreign-invested garment factory in Vietnam (Photo: VNA)

The index reached 73.9 points in Q1, the highest score recorded since Q3 of 2019, before the COVID-19 pandemic impacted the global trade and investment system.

The BCI survey also showed the sustained optimism about the business climate, up 47 points over the last 12 months.

When asked about Vietnam’s business climate outlook for Q2 this year, 67 percent of the European enterprises considered it “excellent” or good“, rising 12 percent from Q1.

The respondents were also more optimistic about their businesses’ performance in Vietnam this year. More than two-thirds of them, equivalent to about 68 percent, expected their orders and revenue will maintain the same level or increase in the next three months, up 25 percent from Q4 of 2020.

EuroCham members noted that improvements thanks to the EU-Vietnam Free Trade Agreement (EVFTA), which took effect on August 1 last year, has created favorable conditions for enterprises.

However, business leaders also expressed their concern about certain barriers like administrative procedures that will continue hampering their firms’ activities in the time ahead.

VNA

European enterprises maintain optimism about Vietnam’s business environment

May 4, 2021 by tuoitrenews.vn

Asked to comment on the business climate in Vietnam in the second quarter, as many as 67 percent of European enterprises deemed it “good” or “excellent,” the European Chamber of Commerce in Vietnam (EuroCham) has reported.

This proportion increased 12 percent from the outlook for the first quarter of this year, indicating that a positive view on the trade and investment environment in Vietnam has been maintained among European enterprises.

The positive assessment is part of the results of the Business Climate Index (BCI) just announced by Eurocham for the first quarter of 2021.

Accordingly, Vietnam’s BCI increased 47 percent from 12 past months to reach 73.9 percent, the highest-ever rate since the third quarter of 2019, before the COVID-19 pandemic hit the global trade and investment system.

Regarding their business prospects, 68 percent of EuroCham members stated that their purchase orders and revenue will be maintained or increased in the second quarter.

This proportion is higher than the last quarter of 2020.

Commenting on the benefits from the EU – Vietnam Free Trade Agreement (EVFTA), more than 60 percent of the enterprises polled in an EuroCham survey said that they have gained interests from this agreement since it took effect on August 1, 2020.

However, some enterprise executives also warned that administrative procedures in Vietnam continued to be the biggest barrier to overcome.

Appraising the BCI results for Vietnam, EuroCham chairman Alain Cany said that the index confirms once again that Vietnam is open for business.

While many countries continue to struggle with the impact of COVID-19, Vietnam has ensured businesses could continue to operate normally, without many disruptions, which is helping promote the country’s economic growth and enhance European business leaders’ confidence, he added.

The EuroCham chairman also remarked that Vietnam is on the right track to achieve its dual goal of containing the pandemic and boosting its economic growth.

As the voice of the European business community in Vietnam, the EuroCham was set up in 1998 to help develop Vietnam into an investment destination as well as a trading partner of European enterprises.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!