Processing clams for export - Illustrative image (Photo: VNA)
The BCI reached the highest point following the fourth wave of COVID-19 infections, with positive sentiment reaching 61 points, a jump of 42 points since the third quarter of 2021 after the end of lockdowns and the re-opening of normal commercial operations.
The BCI remains below its pre-pandemic peak. However, it is clear evidence that confidence is returning to the market.
As many as 58 percent of European business leaders are now anticipating economic stabilization and growth in the first quarter of 2022, while only 17 percent of those predict a deterioration.
European enterprises are also more confident about the prospects of their development in this post-pandemic ‘new normal’.
Up to 43 percent of European businesses surveyed plan to increase their investment in the first quarter of 2022 compared to just 17 percent three months ago.
Likewise, 38.5 percent intend to increase their headcount, while 51.5 percent are predicting a rise in orders and revenue.
EuroCham Chairman Alain Cany said European business leaders welcome the return to life as normal and business as usual, and in particular the easing of entrance requirements for vaccinated foreigners who live and work here.
According to Cany, almost 90 percent of EuroCham member companies reported that previous restrictions had an impact on their commercial operations. So, this new regulation will help to improve the business environment and increase the confidence of business leaders still further.
Processing shrimp for export - Illustrative image (Photo: VNA)
However, he noted that some sectors remain at risk of falling behind in the race to recover post-pandemic.
Tourism - one of Vietnam’s spearhead economic sectors and which is responsible for millions of jobs - remains restricted to guided tours, and this is keeping the brakes on economic growth, he said.
Therefore, EuroCham encourages the Vietnamese Government to go further and faster in re-opening - at least in areas with high vaccination rates - so that Vietnam can achieve its full potential as a leader in this and other industries and attract more foreign investment in 2022.
According to Thue Quist Thomasen, CEO of YouGov Vietnam, the BCI shows that confidence and optimism are returning as companies get back to work. European businesses are planning to increase their staffing levels, investment plans, and revenues as a result now that the pandemic is back under control.
The BCI is a regular barometer of how European business leaders see the trade and investment environment in Vietnam and the prospects of their own enterprises. Each quarter, the chamber asks its members to answer a range of questions covering issues such as their investment plans, revenue projections, and workforce levels. Since 2020, the BCI survey has been conducted by YouGov Vietnam.
Imported automobiles up over 52 percent in 2021
As many as 160,035 automobiles were imported to Vietnam last year, up 52.1 percent annually, mostly from Thailand, Indonesia and China, reported Vietnam News Agency according to statistics from the General Department of Vietnam Customs.
Illustrative image (Photo: VNA)
Its preliminary data showed that the December figure was 15,196 worth 433 million USD compared to 15,356 units worth 340 million USD in November.
Among them, those from Thailand, China and Indonesia numbered 13,766, or 91 percent of the total auto imports to Vietnam.
Also in December, there were 8,536 units with below nine seats imported to Vietnam at a value of 190 million USD, or 56.2 percent of the total, down 23.5 percent in volume month-on-month. Those with more than nine seats came from China with 54 units and Thailand 28.
Domestic firms also bought 2,583 specialised automobiles worth 117.3 million USD, up 67.7 percent in volume and 56 percent in value month-on-month. Of this, 2,303 were from China, up 91.9 percent monthly.
Trade revenue in 2022 likely to hit 750 billion USD
Vietnam’s total import-export turnover this year is anticipated to reach between 740 - 750 billion USD, representing a rise of 13 – 15% over the previous year, reported the Voice of Vietnam according to industry insiders.
Trade activities are set to maintain their growth momentum as the processing and manufacturing sectors have enjoyed a recovery in their production activities (Photo: baodautu.vn)
Nguyen Viet Phong, an official of the General Statistics Office, says there remains plenty of room for export activities to grow well in 2022 thanks to robust export growth recorded in 2021 coupled with the country’s flexible approach to contain the COVID-19 pandemic.
Vietnam grossed 668.5 billion USD in foreign trade last year, a year-on-year rise of 22.6%, helping the country maintain a trade surplus of more than 4 billion USD.
“Vietnam’s shifting of its COVID-19 strategy to living safely with COVID-19 is facilitating business production and this approach is expected to fuel the country’s foreign trade this year,” explains Phong.
Economist Can Van Luc predicts Vietnam is likely to rake in between 372 - 380 billion USD from exports this year, representing a rise of between 13 - 15%, while imports will hover around 366 - 372 billion USD, up between 11 - 13% compared to 2021’s figures.
“The country is anticipated to continue posting a trade surplus of between 4 - 8 billion USD this year, he says.
The expert notes ongoing COVID-19 containment efforts and the enforcement of new-generation free trade agreements (FTAs) will give fresh impetus to trade, and boost investment and tourism activities, in the context that global trade is likely to see a downward trajectory due to the outbreak of new COVID-19 strains.
Meanwhile, Phi Huong Nga, another official of the General Statistics Office, expresses her belief that import and export activities will continue to represent bright spots on the overall economic picture this year as local processors and manufacturers have enjoyed a recovery in their production activities.
According to recent survey results conducted by the General Statistics Office for processing and manufacturing enterprises, up to 83.3% of respondents revealed that the number of new export orders has increased or remained the same as in the fourth quarter of 2021.
Statistics show Vietnam’s total import-export value in the first half of January 2022 was 27.55 billion USD, a fall of 20.7% compared to the first half of December 2021. Experts say despite a temporary decline, trade activities are set to maintain their growth momentum this year.
Hanoi to resume bus services in February
Hanoi authorities have permitted bus services to resume operations at full capacity from February 8, following an over-three-month hiatus caused by the pandemic, reported the Voice of Vietnam.
Dao Viet Long, deputy director of the Hanoi Department of Transport, said the Hanoi Public Transport Management Centre was assigned to develop a plan for buses to return at 100% capacity from February 8, the same time students will go back to school after the Lunar New Year holiday.
Earlier, the Hanoi Transport Corporation (Transerco), proposed the city government allow buses to operate at full capacity to serve people travelling by bus more conveniently.
From October 14, 2021, bus routes throughout the capital were only allowed to carry half their designed capacity and no more than 20 passengers at a time due to pandemic prevention and control.
Waiting for a bus took about 15-60 minutes. Transerco said the number of passengers travelling by bus was increasing again.
Bus service units confirmed that they were ready to deploy vehicles as well as pandemic preventive measures to meet travel demand./.