European enterprises highly appreciate Vietnam’s business potential

According to the European Chamber of Commerce in Vietnam (EuroCham), the Business Climate Index (BCI) of EuroCham reached 73.9 percentage points in the first quarter of 2021. This is the highest point recorded since the third quarter of 2019, before the Covid- 19 pandemic attacked the global trade and investment system.

The survey results show that the business climate optimism will continue, up 47 percentage points over the past 12 months.

Vietnam has recorded strong economic growth since the beginning of 2021, and this result is also reflected in the confidence of European businesses. Upon being asked about the outlook for Vietnam's business climate for the next quarter, 67% of them predicted it to be 'excellent' or 'good' - an increase of 12% compared to the fourth quarter of 2020.

Moreover, survey participants are also optimistic about their enterprises’ business potential. More than two-third (68%) of them estimated that their orders and sales will maintain or increase over the next three months, up 25% over the fourth quarter of 2020.

EuroCham members also noted positive changes from the EU-Vietnam Free Trade Agreement (EVFTA), which took effect on August 1, 2020. More than 60% of participants said their company has benefited from the Agreement's implementation. However, business leaders also said that administrative procedures remain the biggest barrier.

According to EuroCham President Alain Cany, “The BCI again confirms that Vietnam is continuing to open up its economy. While other countries are still heavily influenced by the impact of Covid-19, Vietnam can assure that companies here can continue to operate normally without much disruption. This helps to promote economic growth and strengthen the confidence of European business leaders.

Therefore, it is not surprising that EuroCham members are positive about their own company's future and optimistic about the prospects of Vietnam's trade and investment environment. The BCI has now risen again to the level before Covid-19 occurs, which is proof that Vietnam is on the right track to achieve its parallel goals of fighting against the epidemic and promoting economic growth”.

BCI is a measure frequently used by EuroCham members to perceive and evaluate the business environment. Every quarter, BCI tracks the performance of EuroCham member companies and their perspectives on the economic potential in Vietnam. Field survey and data collection for BCI are conducted by YouGov Vietnam.