November 23, 2020

[BCI Q3 2020] Enterprises Optimistic as Business Confidence Rebounds

The Business Climate Index (“BCI”) from the European Chamber of Commerce (“EuroCham”), conducted by YouGov Vietnam, has rebounded in Quarter 3. The BCI jumped 24 points to reach 57.5 – the highest score since the outbreak of the global COVID-19 pandemic.
    
The BCI is a regular barometer of EuroCham members and their perceptions of the trade and investment environment. Each quarter, it tracks the performance of EuroCham’s member companies and their perceptions of the economic outlook in Vietnam.
    
In Quarter 1 of 2020, when COVID-19 first hit international trade and investment, the BCI fell to 26 points. It saw a slight increase in Quarter 2 as Vietnam became one of the global success stories of the pandemic. Now, with businesses able to operate with far fewer restrictions and the EU-Vietnam Free Trade Agreement (EVFTA) entering into force on 1 August, the confidence of European business leaders has seen a strong resurgence.
   
Business leaders were more positive about their own enterprise in Quarter 3, with 40 per cent describing their performance as either “Excellent” or “Good” – more than double the 18 per cent recorded in the previous three-month period. Quarter 4 looks to be even more promising, with 44 per cent predicting a strong end to 2020. Meanwhile, most companies are anticipating stabilization in their headcount (65 per cent) and investment plans (57 per cent), with just under half (44 per cent) expecting to see an increase in their revenue and orders.
  
With the EVFTA entering into force in Quarter 3, the BCI also asked EuroCham members about its impact on their business and investment plans. One-third said that the agreement was an important part of their decision to invest in Vietnam, with the top two factors predicted to drive growth being tariff reductions (33 per cent) and greater market access for investors (13 per cent).
    
Commenting on the BCI Nicolas Audier, Chairman of EuroCham, said:
“Despite a difficult 2020 for international trade, our data shows that Vietnam’s swift and effective response to the global pandemic has paid dividends. European business leaders feel more positive both about their own enterprises and Vietnam’s trade and investment environment, and report a sense of cautious optimism going into quarter four.
“The implementation of the EU-Vietnam Free Trade Agreement in August has, no doubt, helped to boost this growing confidence. Our data shows that falling tariffs and growing market access are important to our members, and will help to spur new foreign-direct investment from the EU in the future.”
    
Thue Quist Thomasen, CEO of YouGov Vietnam, added:
“Drilling down into the data, we can see some of the trends that underlie the jump in positive sentiment in more detail. In short, business leaders are reporting a sense of cautious optimism in their own companies, and this is driving confidence in Vietnam’s macroeconomic prospects next quarter.
“In particular, the proportion of business leaders predicting an increase in their orders or revenue in the next three months has risen by 20 per cent – from 24 per cent in Quarter 2 to 44 per cent in Quarter 3. Meanwhile, 23 per cent of business leaders expect to hire more staff in the next three months, compared to 14 per cent in the last BCI. Together, these signals point to a positive end to 2020.”
    
Read the full Report HERE

 

More News

See all

December 08, 2023

[CORPORATE PARTNERS] BASF engages young minds in chemistry with two new Virtual Lab experiments in Vietnamese

Read more

December 08, 2023

[Event Recap][Breakfast talk] EuroCham Construction Sector Committee’s Successful HCMC Breakfast Talk on Designing with AI!

Read more

December 08, 2023

Vietnam enhances climate role at COP28 with JETP Resource Mobilization Plan

Read more

December 08, 2023

[CORPORATE PARTNERS] The Corporate Sustainability Reporting Directive (CSRD) is resetting the value-creation agenda

Read more

December 08, 2023

EuroCham representatives attend Vietnam 500 Best Employers and Top 10 Workplaces ceremony

Read more

December 08, 2023

EuroCham Vietnam attends first Industrial Park Forum to discuss textile and leather industry challenges

Read more

December 08, 2023

[EVENT RECAP] [Webinar] European Anti-Deforestation Regulation (EUDR) and Vietnam’s preparation for its implementation

Read more

December 05, 2023

[Supported] Viet Nu Trading Corp signs Corporate Sustainable Aviation Fuel (SAF) agreement with Air France-KLM

Read more

December 01, 2023

EuroCham’s IQMED-G&B and Vietnam Drug Administration examine challenges in drug registration for improved healthcare in Vietnam

Read more

December 01, 2023

BeLuxCham ESG Conference 2023: celebrating collaboration and sustainability

Read more

November 30, 2023

2023 Vietnam – EU Trade Forum: a step forward in sustainable development and future value chains

Read more

November 30, 2023

[Supported] Air France celebrates 90 years of elegance

Read more

November 24, 2023

EuroCham Intellectual Property Rights Sector Committee meets Supreme Court to discuss Intellectual Property Rights Enforcement

Read more

November 24, 2023

Exploring collaboration: Binh Duong’s potential for hosting GEFE 2024

Read more

November 24, 2023

EuroCham Vietnam shared at a Customs-Business Dialogue Conference 2023

Read more

November 21, 2023

[CORPORATE PARTNER] BASF and Teamplas give waste a second life

Read more

November 19, 2023

EuroCham Vietnam Gala Dinner and Business Awards 2023: Commemorating a quarter century of championing Europe-Vietnam trade and investment ties

Read more

November 17, 2023

[Work @ EuroCham] Green Growth Sector Committee Intern – based in Ho Chi Minh

Read more

November 17, 2023

[Work @ EuroCham] PHARMA GROUP COMMUNICATIONS INTERN – based in Ho Chi Minh

Read more

November 17, 2023

Charting a green future: highlights from the 2023 Mekong Connect Forum in Ho Chi Minh City

Read more

November 17, 2023

EuroCham honored at VIR’s Sustainable Development Conference for outstanding contributions

Read more

November 17, 2023

[Sector Committee Spotlight] The Tourism & Hospitality Sector Committee (THSC)

Read more

November 17, 2023

Forging sustainable partnerships: FrieslandCampina Vietnam’s innovative collaboration for enhanced recycling and environmental stewardship

Read more

November 10, 2023

EuroCham addresses attendees at AmCham’s green transition conference

Read more

November 10, 2023

Vietnam-EU Economic Forum: charting a sustainable future through green initiatives and trade partnerships

Read more

November 10, 2023

[Recap Event] Future of work explored at EuroCham-JLL Vietnam business luncheon

Read more

November 03, 2023

EuroCham’s field trip unveils investment potential in Ha Nam Province

Read more

November 03, 2023

Global leaders and innovators convene in Hanoi, championing Vietnam’s sustainable future

Read more

November 03, 2023

[Work @ EuroCham] Sector Committee Intern – based in Ho Chi Minh

Read more

October 27, 2023

EuroCham presents on EU business opportunities at Quang Ngai investment promotion conference

Read more

Pour une expérience optimale, veuillez tenir votre mobile à la verticale !

Platinum Partners

Gold Premium Partners

Gold Partners

Silver Partners

Premium Service Partners