European business gaining in confidence as EU - Vietnam FTA nears.
Business confidence, outlook and expectations for the future among European businesses in Vietnam continues to rise, according to the results of the 16th quarterly EuroCham BCI (Business Climate Index) survey, conducted in September 2014. In the third quarter of 2014 the BCI climbed from 66 points to 74 points, approaching the level reached in the first quarter of 2011.
This was part of the "White Book" released by European Chamber of Commerce (EuroCham) in Vietnam yesterday - the seventh edition of its “White Book of Trade/Investment Issues & Recommendations”. In the previous edition of the White Book the BCI for the third quarter of 2013 was 50 points.
The BCI survey showed that the increase this year has been influenced by high expectations in the EU business community over the ongoing negotiations for the EU - Vietnam Free Trade Agreement (FTA). The survey also showed an improvement in issues identified in previous months by many participants.
At the press conference for the release of the White Book, Ms. Nicola Connolly, Chairman of EuroCham in Vietnam, said that over the last 12 months it has observed and welcomed the reforms initiated by the Vietnamese Government. “Vietnam’s BCI in the third quarter of 2014 expresses expectations over the FTA,” she said. “If it is signed and implemented widely next year, Vietnam’s economy as well as the European business community will obtain a lot of benefits.”
Although the government has adopted many significant innovations in policy, European companies still face challenges in doing business in Vietnam. Highlighted concerns for European businesses operating in Vietnam include transparency and the legal framework. “EuroCham is willing to work with the government to develop an efficient legal framework and a positive business environment for the benefit of Vietnam, Vietnamese citizens, and European businesses,” Ms Connolly added.
The White Book 2015 summarizes for the government key issues affecting the business climate for European companies in Vietnam. Its content spans a number of major industries that EuroCham’s almost 800 members operate in, including the sectors of agricultural business and food safety, banking and finance, fast moving consumer goods, information technology, and tourism and hospitality.