February 03, 2021

[BCI Q4 2020] European Business Leaders Optimistic for 2021

European Business Leaders Optimistic for 2021

European business leaders ended 2020 more optimistic about Vietnam’s trade and investment environment than at any point since the outbreak of COVID-19, according to the Business Climate Index (BCI) from the European Chamber of Commerce.
  
The BCI is a regular barometer of EuroCham members and their perceptions of the business environment. Each quarter, it tracks the performance of EuroCham’s member companies and their perceptions of the economic outlook in Vietnam. The fieldwork and data collection for the BCI is conducted by YouGov Vietnam.
  
The BCI climbed 6 points in quarter four of 2020 to reach 63.6 – ending 2020 on a high. In total, the index rose 37 points over the course of last year, after falling to a historic low in quarter one with the initial outbreak of COVID-19. Since then, the BCI has maintained positive growth as Vietnam’s successful handling of the pandemic and implementation of the EVFTA combined to improve confidence and boost business.
  
When asked about Vietnam’s economic prospects in the next quarter, 57 per cent of EuroCham members predicted “stabilization and improvement” in the first three months of 2021. That compares to 39 per cent in the third quarter of 2020 – a rise in confidence of 18 percentage points.
    
Turning to the prospects of their own enterprises, European business leaders were more positive and optimistic in quarter four. One third of EuroCham members predicted a rise in their headcount in the next quarter, with a further 57 per cent expecting to maintain the same level. Meanwhile, 30 per cent anticipate a rise in investment and 43 per cent predict a rise in orders and revenue.
   
With the EU-Vietnam Free Trade Agreement (EVFTA) now in force, EuroCham also asked its members for their perceptions of this agreement and its impact on their business operation. In an encouraging sign, 70 per cent said that their business had already benefitted from the EVFTA since it entered into force on 1 August. However, 33 per cent also said that “administrative procedures” were the main barrier for them to utilize the EVFTA – showing the importance of monitoring the implementation of this agreement.
  

Commenting on the BCI, EuroCham Chairman Nicolas Audier said:

“Our latest BCI paints a positive picture of Vietnam’s business environment as we look ahead to 2021. The growth in confidence we have seen over the last 12 months is a testament to the government’s swift and effective handling of COVID-19, and creates a strong foundation for the next five years of Vietnam’s socio-economic growth.
    
“Meanwhile, our members report a positive impact of the EVFTA since it entered into force six months ago. European business leaders are looking forward to the increased trade and investment that the agreement will bring, while also highlighting some of the issues which need to be addressed to ensure its smooth and successful implementation.”
   

Thue Quist Thomasen, CEO of YouGov Vietnam, added:

“The continued upward trend in positive sentiment suggests a growing confidence in Vietnam’s trade and investment environment – standing in contrast to the situation elsewhere in the world.
   
“When we look at the detail, our data shows that this confidence is rising across the board. Business leaders report stronger expectations for their headcount, with 33 per cent anticipating an increase in the first quarter of 2021. That’s ten percentage points higher than the 23 per cent predicted in the third quarter of 2020. Meanwhile, 30 per cent of business leaders now expect to increase their investment in the next quarter, up from 20 per cent in quarter three of 2020.”
  
VIEW THE REPORT HERE

More News

See all

July 19, 2024

[CORPORATE PARTNER] BASF introduces Haptex® 4.0: The future of sustainable synthetic leather

Read more

July 12, 2024

Cautious optimism, but administrative bottlenecks remain a stumbling block: EuroCham Vietnam’s Q2 Business Confidence Index survey

Read more

July 12, 2024

EuroCham’s Medical Devices and Diagnostics Sector Committee contributes to Business Dialogue Conference in Da Nang

Read more

July 12, 2024

Celebrating One Year of the EuroCham Construction Sector Committee

Read more

July 12, 2024

EuroCham brings valuable insights to Green and Clean Energy Towards Net Zero Forum

Read more

July 12, 2024

EuroCham Vietnam and our Green Growth Sector Committee champion circular economy at national dialogue with the Ministry of Agriculture and Rural Development

Read more

July 11, 2024

EuroCham Vietnam participates in Hung Yen Province’s masterplan announcement ceremony

Read more

July 11, 2024

EuroCham Vietnam promotes upcoming Green Economy Forum & Exhibition (GEFE) 2024 at Solar & Storage Live Vietnam 2024

Read more

July 05, 2024

DPPA decree signed: a major step forward for green growth in Vietnam

Read more

July 05, 2024

EuroCham Vietnam’s Brussels mission: strengthening Europe-Vietnam ties

Read more

July 05, 2024

Vietnam’s Personal Data Protection Decree: Challenges and Opportunities – Insights from our Digital Sector Committee 

Read more

June 28, 2024

EuroCham Vietnam champions members’ interests in high-level EU-ASEAN Business Mission to Hanoi

Read more

June 28, 2024

EuroCham Vietnam bids farewell to former chairman Gabor Fluit at special reception hosted by Dutch Consul General

Read more

June 28, 2024

EuroCham Vietnam Secretary General Marieke Van der Pijl outlines EU Green Deal impact on Vietnam’s textile industry at sustainability conference

Read more

June 28, 2024

EuroCham Medical Devices and Diagnostics Sector Committee meets with the Ministry of Health’s Infrastructure and Medical Device Administration

Read more

June 28, 2024

[CORPORATE PARTNER] BASF Vietnam embraces ‘Future of Work’ approach and sustainability with new office at Deutsches Haus Ho Chi Minh City

Read more

June 28, 2024

[Sector Committee Spotlight] Sustainable Finance Sector Committee

Read more

June 28, 2024

EuroCham highlights Trade Facilitation at Customs-Business Dialogue with Ho Chi Minh City Customs Department

Read more

June 21, 2024

[Work @ EuroCham] GREEN GROWTH SECTOR COMMITTEE & SUSTAINABLE FINANCE SECTOR COMMITTEE INTERN – based in Hanoi

Read more

June 21, 2024

EuroCham discusses ESG reporting at Ho Chi Minh City Economic Forum 2024 seminar

Read more

June 21, 2024

EuroCham 2024 Business Awards – Guidelines for EuroCham Direct Member Nominations

Read more

June 21, 2024

[Corporate Partner] Sanofi Vietnam inaugurated the new world-class headquarters in Ho Chi Minh City

Read more

June 14, 2024

[Work @ EuroCham – CROPLIFE VIETNAM] COMMUNICATIONS & STEWARDSHIP SPECIALIST

Read more

June 14, 2024

EuroCham’s Green Growth Sector Committee drives sustainability dialogue at “ESG: From Ideas to Action” workshop

Read more

June 14, 2024

EuroCham Vietnam and EU Chamber of Commerce in China shed light on China+1

Read more

June 14, 2024

EuroCham and HCMC leaders meet to drive green economy initiatives at GEFE 2024

Read more

June 14, 2024

EuroCham welcomes IMF Delegation to discuss Vietnam’s economic landscape

Read more

June 10, 2024

EuroCham attends Vietnam Sourcing Expo 2024

Read more

June 07, 2024

EuroCham Vietnam Executive Director participates in annual EBO Worldwide Network meeting in Brussels

Read more

June 07, 2024

EuroCham voices business community priorities at key economic meeting with the Ministry of Planning and Investment (MPI)

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