The latest results of the Business Climate Index (BCI) report from the European Chamber of Commerce in Vietnam (EuroCham), published on April 15, show positive forecasts for Vietnam’s economy and investment.
European companies’ confidence in Vietnam’s investment environment in Q1 2022 continues to increase, and European companies also have positive forecasts for the future growth of the Vietnamese economy.
The report shows that the BCI rose 73 percentage points in the first quarter of 2022, reaching the highest level since the fourth outbreak. This number increased by 12 percentage points from the fourth quarter of 2021, in addition to an increase of almost 58 points from the third quarter.
BCI is a periodic report that consults with more than 1,200 European EuroCham member investors and business leaders from all sectors of the economy, and provides quarterly updates on the environmental assessment. Vietnam’s trade and investment, as well as making predictions about the business prospects of companies. This survey has been conducted since 2013 and conducted by YouGov Vietnam since 2020.
According to the EuroCham report, European business leaders are now more optimistic as Vietnam relaxes anti-epidemic rules and its economy continues to recover and develop. BCI is likely to continue this upward trend into the next quarter, with a more positive business outlook.
EuroCham also noted that European business leaders have positive forecasts for the future growth of the Vietnamese economy. More than two-thirds of respondents believe that Vietnam’s economy is likely to stabilize and improve in the second quarter of 2022, while only 58% have positive forecasts in the fourth quarter of 2021. This is well above the 5% of respondents predicting a recession for the next quarter.
European businesses are also providing ambitious Q2 forecasts for their companies, especially when compared to Q1 forecasts. Nearly 66% of respondents expect sales to increase in the second quarter of the year, compared to 52% in the previous quarter. Likewise, more than 46% of respondents predict that the number of employees will increase in the coming quarter.
For the first time, BCI has conducted a survey of enterprises’ assessment of Vietnam’s future green growth. More than 82% of respondents said the outlook is positive about the potential for sustainable development, reflecting confidence in Vietnam’s green future.
Commenting on the BCI results, EuroCham president Alain Cany said Vietnam’s economic recovery is moving fast. According to him, Vietnam has the opportunity to attract a new wave of green, high-quality FDI from European investors looking for a safe and competitive investment destination.
“Given that BCI participants have expressed deep enthusiasm for Vietnam as a destination for green growth investment, there is no better time than now to get up to speed in Vietnam’s sustainable development sector,” he said.
“To this end, green development will be the main theme of EuroCham’s activities in 2022, culminating in the Green Economy Forum and Exhibition (GEFE) 2022. GEFE 2022 will be a platform for exchange and participation between relevant individuals and organizations, the business community and government agencies from both Europe and Vietnam.”
@ Saigon Times
