European enterprises are more optimistic about business prospects in Vietnam

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BCI in the first quarter has fallen to the lowest level, but is slowly recovering.

The European Chamber of Commerce in Vietnam (EuroCham) and Decision Lab have just released the results of the second quarter Business Environment Index (BCI) survey of member companies.

Accordingly, the overall BCI has increased slightly over the past three months, from 27% in the first quarter to 34% in April and remained stable in the second quarter.

This report shows that the optimism of business leaders in Vietnam’s market is gradually returning, after a decline caused by the first Covid-19 wave.

However, the BCI results also show that business leaders who are still feeling the negative effects of the global pandemic should be cautious about the future prospects of businesses.

In particular, European companies performed better in the past three months than initially predicted when the Covid-19 pandemic was at its peak.

In the first quarter, only 10% of respondents predicted that their performance would improve in the short term. However, in the latest report, 24% of survey participants describe their business performance as “good” or “excellent” for the past three months.

With this result, looking to the short-term future, about 25% of EuroCham members predict the number of orders will increase in the third quarter, 28% predict the same order level in the second quarter and this will help businesses grow in the future.

However, companies continue to see the impact of Covid-19 on business, as half of the respondents predict a decrease in the number of employees in the next quarter.

According to Mr. Nicolas Audier, President of EuroCham, despite the fluctuations of the global pandemic, the results of the second quarter BCI survey showed that the Government had taken quick and effective responses to prevent the spread of the virus, keeping Vietnam's performance stable before Covid-19.

But besides that, he said that restricting movement between countries is having an impact on European enterprises in Vietnam.

European firms more positive about Vietnam’s business climate European businesses are more positive about Vietnam trade and investment environment in the first few months after ...

"The Government has been working with foreign business communities, giving essential workers a safe return, and we are grateful for this support. In the short term, global trade will remain unpredictable. But we fully believe that European businesses will be one of the factors that will help promote long-term economic growth in Vietnam, especially when the EU-Vietnam Free Trade Agreement (EVFTA) has come into effect," Mr. Nicolas Audier said.