European firms optimistic about business climate in Vietnam

Photo for illustration. (Source: VNA)

According to the responses to the BCI survey, 67% of the respondents described their current business situation as “excellent” and “good”, an approximately 5% drop from previous quarter. A slight rise was verified in the “not good” and “very poor” answers (which previously had almost no bearing), with 9% and 3%, respectively (from 3% and 2% the last quarter).

On the business outlook for the next quarter, 9% of the respondents showed “very good” answers, while 60% are moderately optimistic.

For macroeconomic outlook for the next quarter, EuroCham members that expressed confidence in a stable and continuously improving macroeconomic scenario for Vietnam dropped by around 10%.

Conversely, businesses that believe the macroeconomic situation could even deteriorate has risen 11% to 18% at present. The number of respondents that expect no change in the next quarter remains close to the 40% mark.

42% of the respondents expressed their intention of remaining long-term investment in Vietnam, a 2% increase compared to the fourth quarter of 2016.

EuroCham firms said increasing transparency in administrative procedures and taxes played a central role in improving the business climate./.