European firms optimistic about Vietnam’s business climate
Leaders of European businesses have started 2021 with optimism about the trade and investment environment in Vietnam, according the Business Climate Index (BCI) for the first quarter of 2021 released by the European Chamber of Commerce (EuroCham) on April 30.
A foreign-invested garment factory in Vietnam (Photo: VNA)
HCM City (VNA) – Leaders of European businesseshave started 2021 with optimism about the trade and investment environment inVietnam, according the Business Climate Index (BCI) for the first quarter of 2021released by the European Chamber of Commerce (EuroCham) on April 30.
The index reached 73.9 points in Q1, the highestscore recorded since Q3 of 2019, before the COVID-19 pandemic impacted theglobal trade and investment system.
The BCI survey also showed the sustained optimism about thebusiness climate, up 47 points over the last 12 months.
When asked about Vietnam’s business climate outlook for Q2this year, 67 percent of the European enterprises considered it “excellent”or good“, rising 12 percent from Q1.
The respondents were also more optimistic about theirbusinesses’ performance in Vietnam this year. More than two-thirds of them,equivalent to about 68 percent, expected their orders and revenue will maintainthe same level or increase in the next three months, up 25 percent from Q4 of2020.
EuroCham members noted that improvements thanks to theEU-Vietnam Free Trade Agreement (EVFTA), which took effect on August 1 lastyear, has created favourable conditions for enterprises.
However, business leaders also expressed their concern aboutcertain barriers like administrative procedures that will continue hampering theirfirms’ activities in the time ahead.
According to EuroCham Chairman Alain Cany, this time’s BCIindicates that Vietnam is continuing to open its economy though many countries arestill hit hard by the COVID-19 pandemic. Vietnam is capable of ensuring businesses’ normal operationswithout many disruptions, which is helping fuel economic growth and Europeanbusiness leaders’ confidence.
The BCI rebounding to the pre-pandemic levels evidences aconsiderable achievement and that Vietnam is moving in the right direction to achievethe twin targets of combating COVID-19 and promoting economic growth, he said.
The BCI is a regular barometer of the business sentiment amongEuropean companies operating in Vietnam. Eachquarter, it tracks the performance of EuroCham’s member companies and theirperceptions of the economic outlook in Vietnam./.
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A foreign-invested garment factory in Vietnam (Photo: VNA) 
