The European Chamber of Commerce (EuroCham) in Vietnam on January 22announced the Business Climate Index (BCI) for the fourth quarterof 2014, showing business confidence, prospects and expectationsimproved significantly.
In the fourth quarter theBCI increased from 74 to 78, and according to Csaba Bundik,Executive Director of the EuroCham, the results of the survey reflectEuropean enterprises’ expectations on the effects of the Free TradeAgreement between the European Union and Vietnam in the future.
The confidence, however, would dramatically shrink if on-going roundsof negotiations could not come to an end within a reasonable amount oftime, he said.
The number of respondents thatassert their business situation as positive continued to rise, with 52percent perceiving the situation as “good”, while 33 percent reported a“neutral” business situation and around 8-10 percent reported poorcondition.
The greater majority of respondents perceivetheir business outlook as “positive”, and 62 percent of the respondentsexpect “good” business conditions.
Theparticipants expect a rise in the inflation rate over the next sixmonths, from 4.61 percent in the last survey up to 5.78 percent inQuarter 4. A rise in the inflation rate is a logical expected outcomefor the participants as they believe the overall business situation inVietnam to improve and thereby a likely acceleration of the economy.
This is also reflected in participants’ expectationson headcount, investment and orders/revenue. For headcount development,48 percent of respondents said they are considering increasing slightlythe number of employees. Likewise, answering questions in regards toinvestment plans in the medium term, the largest group at 41 percentsaid they consider increasing their investment in Vietnam slightly.
The survey, however, showed a slight rise in concerns over o verallpositive macroeconomic outlook for Vietnam, wih 59 percent of participants assessing the macroeconomic outlook for Vietnam as ‘stabilizationand improvement”, a slight drop from last quarter’s 61 percent.Participants expecting the situation “not to change” also shiftedslightly from 24 percent to 20 percent and there was a rise in thenumber of participants that expected “deterioration of the macroeconomicconditions”, from 15 percent to 21 percent.
Csaba Bundik said EuroCham will actively coordinate with the VietnameseGovernment to address the problems European enterprises have been facingto ensure a better and more transparent business climate as well ashelp them get ready for investment and business opportunities from theFTA.-VNA
In the fourth quarter theBCI increased from 74 to 78, and according to Csaba Bundik,Executive Director of the EuroCham, the results of the survey reflectEuropean enterprises’ expectations on the effects of the Free TradeAgreement between the European Union and Vietnam in the future.
The confidence, however, would dramatically shrink if on-going roundsof negotiations could not come to an end within a reasonable amount oftime, he said.
The number of respondents thatassert their business situation as positive continued to rise, with 52percent perceiving the situation as “good”, while 33 percent reported a“neutral” business situation and around 8-10 percent reported poorcondition.
The greater majority of respondents perceivetheir business outlook as “positive”, and 62 percent of the respondentsexpect “good” business conditions.
Theparticipants expect a rise in the inflation rate over the next sixmonths, from 4.61 percent in the last survey up to 5.78 percent inQuarter 4. A rise in the inflation rate is a logical expected outcomefor the participants as they believe the overall business situation inVietnam to improve and thereby a likely acceleration of the economy.
This is also reflected in participants’ expectationson headcount, investment and orders/revenue. For headcount development,48 percent of respondents said they are considering increasing slightlythe number of employees. Likewise, answering questions in regards toinvestment plans in the medium term, the largest group at 41 percentsaid they consider increasing their investment in Vietnam slightly.
The survey, however, showed a slight rise in concerns over o verallpositive macroeconomic outlook for Vietnam, wih 59 percent of participants assessing the macroeconomic outlook for Vietnam as ‘stabilizationand improvement”, a slight drop from last quarter’s 61 percent.Participants expecting the situation “not to change” also shiftedslightly from 24 percent to 20 percent and there was a rise in thenumber of participants that expected “deterioration of the macroeconomicconditions”, from 15 percent to 21 percent.
Csaba Bundik said EuroCham will actively coordinate with the VietnameseGovernment to address the problems European enterprises have been facingto ensure a better and more transparent business climate as well ashelp them get ready for investment and business opportunities from theFTA.-VNA
