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

September 22, 2023

EuroCham Vietnam attended National Assembly’s Vietnam Socio-Economic Forum 2023: Reinforcing Internal Capacity for Sustainable Growth

Read more

September 22, 2023

EuroCham Medical Devices and Diagnostics Sector Committee (MDDSC) joined ASEAN Common Submission Dossier Template Workshop

Read more

September 22, 2023

EuroCham’s collaborative meetings with the EU Ambassador-Designate Julien Guerrier

Read more

September 22, 2023

EuroCham Vietnam extended a warm welcome to French Ambassador to Vietnam H.E .Olivier Brochet

Read more

September 22, 2023

EuroCham Vietnam joined a launch of the “Circular Economy & Pioneering Models” book

Read more

September 21, 2023

EuroCham Vietnam hosts an exclusive evening to welcome EU Ambassador-Designate to Vietnam

Read more

September 15, 2023

EuroCham engages in a productive dialogue with the Administrative Procedures Control Agency and Reform (ACAPR)

Read more

September 15, 2023

A resounding success: Vietnam International Sourcing Expo 2023 and the EU-VN Trade Forum

Read more

September 15, 2023

[Event recap] EuroCham Women in Business Sector Committee hosted successful Roundtable on Gender Pay gap with Fulbright Professor Graeme Walker

Read more

September 15, 2023

[Sector Committee spotlight] Food, Agri and Aqua Business Sector Committee (FAABS)

Read more

September 14, 2023

Ho Chi Minh City Economic Forum 2023 and the 100 CEOs -Tea Connect spotlight green growth and net zero initiatives

Read more

September 12, 2023

EuroCham Vietnam engages in key talks with Luxembourg delegation to bolster EU-Vietnam economic relations

Read more

September 08, 2023

EuroCham participates in an inaugural meeting of Government Taskforce on Administrative Reforms (APR)

Read more

September 08, 2023

[CORPORATE] First Bayer ForwardFarm of Southeast Asia launched in Vietnam

Read more

September 08, 2023

EuroCham contributes to a critical discussion on attracting foreign investment in high-technology and promoting technology transfer

Read more

September 07, 2023

EuroCham Food, Agri, and Aqua Business Sector Committee (FAABS) explores sustainable aquaculture solutions at Skretting Factory in Long An

Read more

August 31, 2023

EuroCham delegation visits Bac Giang to discuss EU-Vietnam business trends

Read more

August 25, 2023

EuroCham Green Growth Sector Committee spotlights blue-green infrastructure solutions

Read more

August 25, 2023

EuroCham Vietnam engages authorities and state-owned enterprises to drive green growth and spotlight GEF 2023

Read more

August 25, 2023

[SUPPORTED EVENT] Nestlé Vietnam – Innovation and sustainability bring competitive advantages in business

Read more

August 25, 2023

[Sector Committee spotlight] Legal Sector Committee (LSC)

Read more

August 24, 2023

EuroCham’s Tourism and Hospitality Sector Committee visits Binh Thuan to explore tourism promotion collaboration

Read more

August 24, 2023

[Event recap][Business Luncheon] Mid-year review and Forecast for the second half of the year On the Vietnamese Economy

Read more

August 24, 2023

[Event recap][Business Luncheon] Financial Trends 2023: Winning Financial Consumers During Uncertain Times

Read more

August 23, 2023

EuroCham delegation in Ben Tre province to discuss green growth opportunities

Read more

August 18, 2023

EuroCham meets with National Assembly to discuss stronger ties and cooperation

Read more

August 18, 2023

EuroCham weighs in on offshore wind at PDP8 implementation seminar

Read more

August 18, 2023

EuroCham meets with Hoa Binh Province to explore collaboration opportunities

Read more

August 18, 2023

MOIT and EuroCham map out key events to support EU-Vietnam trade

Read more

August 18, 2023

EuroCham recommends improvements to work permit and visa procedures in letter to Prime Minister on revising Decree 152

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