European businesses optimistic about Vietnam’s business climate

Tuesday, 19/04/2022 19:37
European businesses’ confidence in Vietnam’s investment climate continued to increase in the first quarter of 2022, based on the latest results of the Business Climate Index report, according to the European Chamber of Commerce in Vietnam.

Eurocham’s Chairman Alain Cany

In the first quarter of 2022, the Business Climate Index rose to 73 points, reaching its highest level since the fourth outbreak. The figure increased by 12 points compared to the fourth quarter of last year, in addition to an increase of nearly 58 points compared to the third quarter of 2021.

Leaders of European businesses are now more optimistic about Vietnam’s loosening anti-epidemic regulations and continuing to recover and develop the economy. The Business Climate Index is likely to maintain this upward trend in the next quarter, with a more upbeat business outlook.

Leaders of European business are also making positive forecasts for the future growth of Vietnam’s economy. More than two-thirds of respondents believe that Vietnam’s economy is likely to stabilize and improve in the next quarter.

Accordingly, nearly 66% of surveyed respondents expected that revenue will increase in the second quarter of the year, compared with 52% in the previous quarter. Likewise, more than 46% of respondents forecast that the number of workers will increase in the next quarter.

EuroCham President Alain Cany said that Vietnam's economic recovery is happening rapidly. Vietnam remains one of the most effective and attractive investment destinations in the world. Disbursed FDI in the first quarter of 2022 has reached the highest level within the past 5 years. Similarly, Vietnam's GDP growth of over 5% in the first quarter is extremely encouraging.

He believed that with Vietnam’s recent developments and increasing integration as an international economic center, it has the opportunity to attract a new wave of high-quality FDI from European investors who are looking for a safe and competitive investment destination./.