Viet Nam gained 84 points for the second quarter of 2018 in the Business Climate Index (BCI), up six points from the previous quarter, according to new data from the BCI survey released by the European Chamber of Commerce in Viet Nam (EuroCham) on October 4.

The latest BCI results show the sentiment of European businesses is at its strongest in 18 months, and just two points below the all-time high of the third quarter of 2016.

EuroCham members 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 enterprises in the last quarter, with 65 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 company 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.

These results revealed European companies and investors remain confident in Viet Nam, said Nicolas Audier, Co-Chairman of EuroCham. 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. — VNS