Confidence amongst European businesses in Vietnam has continued to rise, according to a Business Climate Index (BCI) survey conducted by the European Chamber of Commerce in Vietnam (EuroCham) for the third quarter of this year.

The report, released on October 23, showed that the BCI index climbed to 74 points from 66 points in the second quarter, reaching the same level as in the third quarter of 2011.

The growth in confidence reflected the high expectations of businesses for the negotiations of the free trade agreement between Vietnam and the European Union, which is expected to be concluded in the near future.

As many as 62 percent of respondents perceived the next quarter’s outlook positively.

In this quarter, high expectations continue, with 61 percent of respondents saying the macroeconomic situation in Vietnam would stabilise and improve, while 24 percent said the situation would not change, and 15 percent expected it to deteriorate.

Estimations on the inflation rate for the third quarter are higher, increasing from 4.26 percent to 4.61 percent.

With high expectations for macroeconomic stability and improvement, and general expectations for an improved business outlook, a moderate rise in inflation is a logical outcome, the report says.

EuroCham Executive Director Csaba Bundik said the European business community was excited and gearing up for the future. The ratification and implementation of the FTA between the EU and Vietnam would be crucial in assuring that these preparations have not been made in vain , he commented.-VNA