The latest Business Climate Index (BCI) by the European Chamber of Commerce (EuroCham) in Vietnam indicates that EU companies in Vietnam ended 2020 with overall optimistic view about the country’s business climate. Illustrative photo. (Source: VNA)The BCI picked up 6 points in the fourth quarter of 2020 toreach 63.6 percentage points for the whole year, the highest since the outsetof COVID-19. The index stood at a record low of 27 percentage points in thefirst quarter of last year, following the first wave of COVID-19 in Vietnam.
The BCI steadily grew throughout the year as the result ofVietnam’s successful containment of the novel coronavirus and the enforcementof the EU-Vietnam Free Trade Agreement (EVFTA) which took effect in August. Thetwo factors have improved confidence in local economy and boost businessactivities.
According to the BCI report, about 57 percent of surveyedEuroCham members believed the Vietnamese economy is likely to stabilise andimprove in the first quarter of 2021, compared to 39 percent in the thirdquarter of last year.
A more optimistic sentiment is also seen among European businessleaders compared to the last three month of 2020. One third of the surveyed companymembers forecast that the number of their employees would increase in thisquarter while 57 percent planned to maintain the same level of headcount. Some30 percent believed investment is likely to expand and 43 percent expectedincreases in the volume and revenue of orders.
Some 70 percent said they have benefited from the EVFTAsince the trade deal entered into force last year. About 33 percent, however,said public administrative procedures are likely to be their biggest obstacleto maximize advantages from the pact.
EuroCham Chairman Nicolas Audier said the latest BCIprovides a positive outlook on Vietnam’s business climate and perspectives for2021. Confidence of the business community on the economy has been strengthenedover the last year, showing the Vietnamese government’s swift response toCOVID-19 and promotion of the EVFTA, he said, adding that these would lay basisfor the country’s economic growth over the next five years.
European business leaders expect growth in both investmentand trade brought about by the EVFTA, he continued, they also expect thatseveral barriers would be removed to ensure the smooth and successfulimplementation of the trade deal./.
VNA
