European firms report positive business climate in Q2

July 21, 2016 | 16:59

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The European Chamber of Commerce in Vietnam (EuroCham) released the Business Climate Index (BCI) for Q2 on July 21, which is posted at 77 indicating positive sentiment from EuroCham members on the local business environment.

The European Chamber of Commerce in Vietnam (EuroCham) released the Business Climate Index (BCI) for Q2 on July 21, which is posted at 77 indicating positive sentiment from EuroCham members on the local business environment.-VNA/VNS Photo

Overall, the assessment on the business situation among European companies in the last quarter is good, with 66.7 per cent of the respondents describing it as "excellent" or "good", and only 12.5 per cent classifying it as "not good" or "very poor".

EuroCham Chairman Michael Behrens commented: "The results for Quarter 2, 2016, show positive expectations for the near future and consistent satisfaction with the present situation."

"EuroCham members maintain a positive view on the Vietnamese market and their business operations in the country, a result which does not differ from our last survey. This is a good sign for the current implementation of the EU-Viet Nam Free Trade Agreement, which is expected to strongly enhance European business and investment," he added.

In regard to the macroeconomic outlook for Viet Nam in the next quarter, from EuroCham members' point of view, macroeconomic stability will likely continue, as 56.3 per cent of the respondents indicated "stabilisation and improvement". Another 9.4 per cent expected deterioration, and 34.4 per cent think that it will not change.

Around 49 per cent of the respondents expected the number of orders or revenue to increase slightly in the next quarter. 15.6 per cent of them were even more optimistic, expecting a significant increase of revenue in Q3.

Specifically, 43.8 per cent of the questioned companies answered that they would increase investment, while 43.7 per cent expected an increase in headcount, the survey found.

The survey was sent out to 883 members of EuroCham including some of the largest European investors in the country.

VNS

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional