The survey was carried out by the European Chamber of Commerce in Vietnam (EuroCham).
The survey showed that business situation among European companies in the last quarter is good, with 66.7% of the respondents describing it as “excellent” and “good”, and only 12.5% classifying it as “not good” and “very poor”. For business outlook, 9.4% of responses being “excellent” and 54.2% “good” with many of them planning to increase investment.
In regards to the macroeconomic outlook for Vietnam in the next quarter, the majority of European enterprises acknowledged that the country’s macroeconomic stability will likely continue, with 56.3 percent of respondents forcasting “stabilisation and improvement” and just 9.4 percent of respondents expecting deterioration and 34.4% think that the macroeconomic outlook for Vietnam will not change.
The EuroCham also said that about 49 percent of the respondents expect the number of orders or revenue to increase slightly in the next quarter. 15.6 percent of them were even more optimistic. Therefore, when they were asked about investment and personnel development plans, responses were also positive, consistent with the expected business orders. Specifically, 43.8% of respondents answered that they would increase investment, while 43.7% expected an increase in headcount. A very small amount of respondents said that they would reduce their headcount (4.1%), while 50% would maintain the same level.
EuroCham Chairman Michael Behrens said that the results for quarter 2 2016 show positive expectations for the near future and consistent satisfaction with the present situation. EuroCham members maintain a positive view on the Vietnamese market and their business operations in the country, a result which does not differ from our last survey. This is a good sign for the current implementation of the EU-Vietnam Free Trade Agreement (EVFTA), which is expected to strongly enhance European business and investment.
Based on the statistics of the Ministry of Industry and Trade (MoTT), the bilateral trade revenue between Vietnam and the EU reached 21.2 billion USD in the first seven months of this year, up 9.05 percent compared the same period last year. In the reviewed period, Vietnam shipped 16.2 billion USD worth of goods to the EU, a year on year increase of 8.68 percent while importing over 4.97 billion USD worth of goods, up 10.28 percent against the same period in 2015.
The EU is currently the second biggest trade partner of Vietnam with two-way trade reaching over 41.2 billion USD. As of 2015, the EU run 1,809 investment projects in Vietnam with a total capital of 23.16 billion USD
Accoridng to Mr.Tran Ngoc Quan, deputy head of the EU Market Department under the Ministry of Industry and Trade, the EU is considered one of the key trade and economic development partners of Vietnam in the Vietnam’s export strategy to 2020, with a vision to 2030. However, Mr.Tran Ngoc Quan noted that Vietnamese business community should take the initiative on all spheres, including market orientation, partnerships, manufacturing renovation and business culture in order to take advantages of the preferential treatment offered from the EVFTA.
The BCI index is a regular barometer of the business sentiment among European companies operating in Vietnam. It provides early signals of turning points in economic activity and tracks movements in business confidence.
