EuroCham: Positive business outlook in VN

08:52 | 24/10/2014

VGP – Business confidence, notably business outlook and expectations for the future among European businesses in Viet Nam, continued to rise. 

Results of the 16th quarterly European Chamber of Commerce in Viet Nam (EuroCham) Business Climate Index (BCI) survey, conducted in September 2014, shows that business confidence, outlook and expectations for the future among European businesses in Viet Nam, continues to rise. In the third quarter the BCI climbs from 66 up to 74, approaching the previous levels in the first quarters of 2011.

The rise is influenced by high expectancy on the current negotiations of the EU Viet Nam FTA. Additionally the survey shows that for a majority of participants the incidents from earlier this year are being put to past. 

When comparing with previous quarter the number of respondents that assert their business situation as positive has seen a slight rise and is now at 48%, the largest group of respondents. The second largest group is respondents that perceive the business situation as neutral.

The major change comes from the respondents that perceive the business situation as negative, having declined from 21% last quarter to a single digit at 8% this quarter. Respondents finding the current business situation to be excellent or very poor were both low, 5% respectively. 

The expectations on the EU Viet Nam FTA are clearly expressed as the respondents were asked about the outlook of their enterprises. 62%, roughly two in three respondents perceive the outlook of the next quarter as good. The second largest group of respondents, still at the relatively substantial number of 24%, perceive the outlook of business as neutral.  

The previous quarters BCI saw 46% expecting stabilization/improvement and 26% expecting deterioration. In this quarter the strong trend of high expectancy continues as 61% of respondents say that the macroeconomic situation in Viet Nam will stabilize and improve.

The majority number (around two thirds) also continuously correlate with the percentage of respondents that perceive business outlook positively, and notably correlate with the percentage of respondents that expect a powerful and influential FTA to be signed.  

(eurohamvn.org)