- April 20, 2022
- Posted by: GBS
- Category: Economics
According to the Business Climate Index (BCI) from the European Chamber of Commerce in Viet Nam (EuroCham), the European business confidence in Vietnam’s investment environment continued to rise at the start of 2022.
The BCI climbed to 73 index points for the first quarter of 2022, once again reaching its highest point after the fourth wave of the pandemic, VGP reported.
The data showed, this is a 12-point increase compared to the fourth quarter of 2021, in addition to nearly 58 points of growth compared to the third quarter, with business executives now more upbeat after the relaxation of Vietnam’s pandemic-related restrictions and the continued acceleration of its economic development.
The BCI is a regular barometer of European business leaders and investors.
EuroCham requests its membership of more than 1,200, with representation made up of business leaders and investors throughout all sectors of Vietnam’s economy, to provide quarterly updates of their perceptions of Vietnam’s trade and investment environment as well as to make projections for their own respective companies.
This research was first conducted in 2013 and has been carried out by YouGov since 2020.
European business leaders are generally showing increasingly improving attitudes towards the prospective growth of Vietnam’s economy as well.
More than two-thirds of respondents now believe that the Vietnamese economy is more likely to stabilize and improve in the second quarter of 2022, compared to 58 percent who held this view in the fourth quarter of 2021.
This far exceeds the five percent of respondents who anticipate economic deterioration for next quarter.
European business stakeholders also indicated ambitious second quarter projections for their companies, especially when compared to projections made for the first quarter.
Nearly 66 percent of respondents are expecting increased revenue for the second quarter of the year, compared to 52 percent three months earlier.
Likewise, more than 46 percent of respondents are forecasting headcount increases for next quarter.
For the first time, the BCI also tracked attitudes towards prospective green growth of Vietnam.
More than 82 percent of respondents indicated a positive outlook regarding the potential for the country’s green, sustainable development, reflecting widespread eagerness towards the country’s green future.
Chance to attract new wave of high-quality, green FDI
Vietnam’s economic recovery is rapidly moving forward, with the country remaining one of the best performing and most exciting investment destinations in the world, EuroCham Chairman Alain Cany told reporter.
FDI disbursed in Q1 of 2022 reached its highest level over the past five years. Likewise, Q1 2022 GDP of Vietnam growth rising over 5 percent is extremely encouraging.
With these recent developments and with reemergence as an international economic power center, the economy has the chance to attract a new wave of high-quality, green FDI from European investors looking for a safe and competitive investment destination, according to VGP.