New data from the Business Climate Index (BCI) of the European Chamber of Commerce in Viet Nam (EuroCham) shows European companies are more optimistic about doing business in Viet Nam.

This growing confidence in Viet Nam’s trade and investment environment can be seen in a six point jump from the first quarter to second of the year. The latest BCI results show the sentiment of European business is at its strongest for 18 months, and just two points below the all-time high of the third quarter of 2016.

EuroCham members also reported an optimistic outlook on various issues, from their own investment and profit projections to workforce levels and Viet Nam’s macroeconomic outlook.

More than 70 per cent reported a positive situation for their enterprise in the last quarter, with 62 per cent describing it as ‘good’ and 12 per cent as ‘excellent’. Looking ahead to the next quarter, 64 per cent believe their business situation will be ‘good’ with a further 15 per cent answering ‘excellent’.

EuroCham members are also optimistic about Viet Nam’s macroeconomic outlook, with 57 per cent predicting ‘stabilisation and improvement’ in the next quarter and 34 per cent believing that it will remain static, compared to just 10 per cent anticipating a ‘deterioration’.

Meanwhile, 57 per cent believe their business will see either a ‘significant’ or ‘moderate’ increase in staff next quarter, with a similar proportion (61 per cent) anticipating either a ‘significant’ or ‘moderate’ increase in investment. More than three-quarters of EuroCham members (76 per cent) believe that their orders or revenue will see a ‘significant’ or ‘moderate’ increase in the third quarter.

For the first time, EuroCham asked its members for their views on Corporate Social Responsibility (CSR). Some 87 per cent responded that CSR is important to their business operations in Viet Nam.

Nicolas Audier, Co-Chairman of EuroCham, said these results showed European companies and investors remain confident in Viet Nam. The fact that EuroCham members have now exceeded 1,000 reinforces this positive message and shows Viet Nam is open for business as an attractive trade and investment destination.

“Our data also shows that European companies are sustainable as well as successful. The fact that almost 90 per cent of our members believe CSR is important to their business operations underlines their long-term commitment to Viet Nam and its people. These results come at an important time for EU-Viet Nam relations. The EU-Viet Nam Free Trade Agreement (EVFTA) should be ratified soon. On the cusp of this historic deal, which would boost trade and investment on both sides, we hope this positive message from EuroCham and its members will inspire the Government to continue opening its markets to foreign investment and improving its trade and investment environment.” — VNS