European enterprises positive on Việt Nam

Friday, Aug 19, 2016 16:27

The office of Gameloft, a French video game developer, in Viet Nam. Enterprises from the EU remain optimistic on the business environment in Viet Nam. — File Photo

HA NOI (Biz Hub) – Enterprises from the European Union remain optimistic on the business environment in Viet Nam, with many of them planning to increase investment, according to a Business Climate Index (BCI) survey for quarter 2, 2016, conducted by the European Chamber of Commerce in Viet Nam (EuroCham).

Accordingly, the majority of European enterprises acknowledged that the country's macroeconomic stability will likely continue, with 56.3 per cent of respondents forecasting "stabilisation and improvement" and just 9.4 per cent of respondents expecting deterioration and 34.4 per cent think that it will not change.

The chamber revealed that about 49 per cent of the respondents expect the number of orders or revenue to increase slightly in the next quarter while 15.6 per cent 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 per cent of respondents answered that they would increase investment, while 43.7 per cent expected an increase in headcount.

A very small amount of respondents said that they would reduce their headcount (4.1 per cent), while 50 per cent would maintain the same level. This result was similar regarding investment plans, with 40.6 per cent of the surveyed businesses responding that investment will be maintained at the same level for the next quarter.

The trend is considered a good sign for the implementation of the European Union-Viet Nam free trade agreement (EUVFTA), which is expected to boost business and investment activities by foreign enterprises in Viet Nam.

Statistics from the Ministry of Industry and Trade (MoIT) showed that two-way trade between Viet Nam and the EU reached US$21.2 billion in the first seven months of this year, up 9.05 per cent compared with the same period last year.

Of this figure, Viet Nam shipped $16.2 billion worth of goods to the EU, a year-on-year increase of 8.68 per cent while importing over $4.97 billion worth of goods, up 10.28 per cent against the same period in 2015.

Tran Ngoc Quan, deputy head of the EU Market Department under the MoIT said in the country's export strategy to 2020, with a vision to 2030, the EU is considered one of the key trade and economic development partners, but in order to make the most of the preferential treatment offered from the EUVFTA, the local business community should take the initiative in all spheres, including market orientation, partnerships, manufacturing renovation and business culture. — VNS

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