Photo: Duc Anh
Latest EuroCham survey reveals positive sentiment about business conditions in Vietnam.
EuroCham released the results of its Business Climate Index (BCI) for Quarter 2, 2016 on July 14, revealing positive sentiment among EuroCham members about Vietnam’s business environment, with an index of 77.
The survey was sent to 883 of its members, all European companies currently operating in the country.
Overall, the business situation among European companies in the last quarter was good, with 66.7 per cent of respondents describing it as “excellent” or “good” and only 12.5 per cent replying “not good” or “very poor”.
Members are therefore positive about their business for this quarter, with 9.4 per cent of responses being “excellent” and 54.2 per cent “good”.
Forty-nine per cent expect order numbers or revenue to increase slightly over the next quarter while 15.6 per cent were even more optimistic, expecting a significant increase in revenue.
When asked about investment and personnel expansion, responses were also positive and consistent with an anticipated rise in orders. Specifically, 43.8 per cent of respondents answered that they would increase their investment while 43.7 per cent expected an increase in personnel numbers.
Only 4.1 per cent of respondents said that they would reduce their personnel numbers while 50 per cent plan to maintain the same level of staff. Results were similar regarding investment plans, with 40.6 per cent responding that investment would be maintained at similar levels for the next quarter.
In regards to the macro-economic outlook for Vietnam in the next quarter, 34.4 per cent believe it will not change. “From our members’ point of view, macro-economic stability will likely continue, as 56.3 per cent of respondents indicated ‘stabilization and improvement’,” EuroCham wrote in a statement.
The BCI is a powerful tool in communicating the European business community’s perception of business in Vietnam.