European business leaders are more optimistic about Vietnam's business environment after the social distancing period ends, the start of a 'new normal' phase of trade and investment.
The optimism of European business leaders continues to increase as companies return to normal activities
According to the European Business Association in Vietnam (EuroCham), positive signs and optimism were reflected in the EuroCham Business Climate Index in the third quarter (BCI), which increased slightly by 3 points compared to the previous quarter.
BCI results published on November 9 witnessed a slight increase with 18.3 percentage points, a record low of 15 percentage points was recorded during the most difficult period of the fourth epidemic in September, 2021.
Although the index is still at a low level, this increase is encouraging. BCI has noted improvements in Vietnam's economic outlook.
Nearly half of business leaders and investors now (49%) expect the economic outlook to stabilize and improve in the next quarter, compared with less than a fifth (19%) recorded in the previous quarter 2.
However, business leaders are still cautious about recruitment, investment and profit forecast of enterprises. Companies are taking a "wait and see" approach to staffing, with about a fifth of survey respondents saying they plan to hire more workers within the next three months.
Up to 69% of enterprises shared plans to maintain or increase investment capital in the fourth quarter, 2 points higher than the previous quarter, with revenue forecast to also increase.
Meanwhile, about half of the companies participating in the survey are still operating at a low frequency compared to pre-pandemic times, as prolonged travel restrictions and staff shortages continue to affect two companies thirds of companies.
This shows that there are still many issues to be resolved if Vietnam is to reach its full potential in trade and investment after the pandemic.
Mr. Alain Cany, president of EuroCham, said that although BCI is still at a low level, the most important thing is that the index is currently moving in a positive direction. With the pandemic now under control in Vietnam, the optimism of European business leaders will continue to increase as companies return to normal operations and consumer confidence increases.
YouGov Vietnam CEO Thue Quist Thomasen adds that behind the BCI results is an exciting new trend. While confidence in the outlook for Vietnam's business environment has seen a small but encouraging increase, companies are a bit more hesitant when it comes to their own operations.
"This shows that business leaders are waiting to see how conditions and regulations under the 'new normal' play out, before making important commitments on investment projects or plans. recruitment plan," said Mr. Quist Thomasen.
The survey was conducted in an online form with the participation of 2,223 business leaders, representing more than 1,000 members of EuroCham. Respondents typically represent top management from European companies and Vietnamese companies with business connections to Europe, such as suppliers or distributors.
Only a small number of individuals are European but work for other companies in Vietnam.
According to Tuoi Tre newspaper.