37% of European businesses report an increase in foreign direct investment into Vietnam by the end of 2022 (Photo: Vietnam+) Hanoi (VNA) - Vietnam has firmly established itself as a leading nation in sustainable economic development, according to a report by EuroCham. The report revealed that 30% of European businesses, directly investing in Vietnam, hold a positive outlook on their business prospects in the first quarter of 2023.
Speaking at the launch event for the 2022/2023 White Paper organized by EuroCham on February 16, EuroCham Chairman Alain Cany commended Vietnam's remarkable progress on the international stage, recognizing it as one of the global leaders in sustainable economic development.
The leader of EuroCham also expressed optimism about Vietnam's economic trajectory, foreseeing a period of robust development over the next two to three years.
To gain deeper insights into the Vietnamese market, EuroCham actively engaged nearly 1,300 members, inviting them to provide quarterly updates on the business environment and forecasts for their operations in Vietnam.
According to EuroCham's latest report, the Business Climate Index (BCI) for Vietnam experienced a decline of 14.2 points in the fourth quarter of 2022 compared to the third quarter, and a significant drop of 25 points compared to the first quarter.
However, looking ahead to 2023, 30% of enterprises have expressed a positive outlook regarding business prospects in the first quarter of the year. Additionally, these enterprises anticipate relative stability in their investment plans, orders, and revenue when compared to the fourth quarter of 2022.
Concerning foreign direct investment (FDI), 37% of enterprises reported an increase in FDI inflows into Vietnam by the end of 2022. Moreover, a quarter of foreign companies indicated that they have relocated their operations from China to Vietnam, with 2% of them undertaking substantial transfers of activities and 42% investing a smaller capital amount into Vietnam.
Alain Cany emphasized that foreign companies recognize streamlining the administrative apparatus and investing in infrastructure development as pivotal levers for Vietnam to attract more FDI.
Ambassador Giorgio Aliberti, Head of the European Union (EU) Delegation to Vietnam, highlighted the positive progress in trade and economic activities, which result from Vietnam's consistent efforts in economic openness, enhanced transparency, and improved efficiency in public administration. He also underscored the crucial role played by the EU-Vietnam Free Trade Agreement (EVFTA) in this context.
Foreign companies identify cutting the administrative apparatus and developing infrastructure more as the main levers for Vietnam to attract more FDI. (Photo: Vietnam+) Giorgio Aliberti further emphasized that the EVFTA outlines a pathway to promote development through green initiatives, with active engagement from the business community.
European enterprises, particularly those at the forefront of green technology, are seen as the most suitable partners, showcasing their effectiveness in supporting Vietnam's economic transition in this regard.
Delving deeper into this matter, Tomaso Andreatta, chairman of EuroCham Green Growth Sector Committee, highlighted that as Vietnam's economy grows, pollution levels also increase due to the complexity of industries and higher consumption patterns among affluent families.
Consequently, Mr. Tomaso Andreatta stressed the urgency for the Government to take prompt action in addressing pressing climate and environmental issues, emphasizing the imperative of global cooperation.
Discussing future cooperation goals, Mr. Thibaut Giroux, President of the French Chamber of Commerce and Industry (CCIFV), underlined that European investors are increasingly selecting Vietnam due to the benefits presented by the EVFTA and the European Union-Vietnam Investment Protection Agreement (EVIPA). With Vietnam's National Green Growth Strategy, the country is perceived as an ideal destination, proactively embracing the necessary changes for a sustainable transition.
To realize the green transition, Vietnam needs a significant budget with the participation of both private and public sectors. (Photo: Vietnam+) Javier Méndez, President of the Spanish Business Association, acknowledged that 2023 would pose challenges, especially amidst global economic obstacles such as declining international demand and tighter financial conditions.
Nonetheless, Mr. Javier Méndez suggested Vietnam's economy continue to demonstrate robust recovery with favorable economic indicators, presenting a positive outlook relative to other countries./.
