July 21, 2020

European Business Leaders’ Confidence Returning after COVID-19

European business leaders were more positive about Vietnam’s trade and investment environment in the first few months after COVID-19, according to data from the Business Climate Index (“BCI”) of the European Chamber of Commerce in Vietnam (“EuroCham”).
 
During the middle of the COVID-19 pandemic, when social distancing and travel restrictions brought normal business operations to a halt, the EuroCham BCI fell to its lowest-ever score of 27 per cent in quarter 1 of 2020. However, after the Government implemented a world-leading public-health and economic response, Vietnam was able to return to business-as-usual much sooner than other countries, who continue to struggle with the impact of the virus.
 
As a result, the positive sentiment of European business leaders began to bounce back, recording a 7 per cent jump between February and April 2020 to reach 34 per cent. Meanwhile, more than half of executives predicted that Vietnam’s macroeconomic climate would “stabilize and improve” in the next quarter – a significant rise compared to quarter 1, when just 10 per cent anticipated an improvement.
 
The BCI also found that more than a quarter of European enterprises had benefitted from the Government’s postponement of tax, while around one-in-five had benefitted from a reduction in rent and a suspension of social insurance contributions.
 
Despite these positive signs, however, challenges remain for European enterprises. While the impact of COVID-19 has lessened a little, a large proportion (88 per cent) felt negative effects as a result of the pandemic in the three months to April. Meanwhile, more than 50 per cent said that a reduction in taxes such as CIT, PIT and VAT would help them emerge stronger from the crisis.
 
Nicolas Audier, Chairman of EuroCham, said:
 
“This data is further evidence that Vietnam is one of the international success stories of the COVID-19 pandemic. It also shows that the Government’s effective and sure-footed handling has had a tangible impact on the confidence of European business leaders.
 
“The next challenge will be adapting to the ‘new normal’ where COVID-19 is present in other countries but where global trade remains essential to domestic economic growth. This will require imaginative solutions to address issues such as the return of foreign experts on whom many international companies depend. EuroCham is grateful for the advice and support we have received from the Government on this matter, and we remain committed to promoting Vietnam as an open, competitive, and attractive place in which to do business to encourage more European investment and trade in the future.”
 
—–
 
Conducted by Decision Lab, the BCI is a regular barometer of how European business leaders see the trade and investment environment in Vietnam and the prospects of their own enterprises. Each quarter, the chamber asks its membership to answer a range of questions covering issues such as their investment plans, revenue projections, and workforce levels.
    
Read the report here
 

More News

See all

May 29, 2023

EuroCham in the News

Read more

May 26, 2023

Addressing foreign work permit challenges: EuroCham and MOLISA hold discussions

Read more

May 25, 2023

EuroCham Chairman Gabor Fluit publicizes the upcoming Business Connection Forum for EuroCham-Tay Ninh partnership

Read more

May 25, 2023

EuroCham welcomes new members at an orientation in Hanoi

Read more

May 24, 2023

Airbus and the Vietnam Academy of Science and Technology celebrate milestone achievement as VNREDSat-1 exceeds expectations in remarkable decade of orbital success

Read more

May 24, 2023

Nordcham Business Briefing details Power Development Plan VIII

Read more

May 24, 2023

Exploring Vietnam’s retail market & consumer trends at EuroCham’s luncheon seminar

Read more

May 22, 2023

Vietnam achieves major breakthrough in energy sector with approval of Power Development Plan (PDP) VIII

Read more

May 22, 2023

EuroCham in the News

Read more

May 19, 2023

IP Business Advisor from the South-East Asia IP SME Helpdesk joins global brand professionals at INTA Annual Meeting Live+ in Singapore

Read more

May 18, 2023

EuroCham’s visit to Roche Diagnostics: spotlight on the crucial role of diagnostics and advocacy for a strong medical devices sector

Read more

May 18, 2023

[CORPORATE] Vietnam National Architecture Award 2022-2023 – Deutsches Haus Ho Chi Minh won the highest award

Read more

May 17, 2023

[Work @ EuroCham] Public Relations Coordinator – based in Ho Chi Minh City

Read more

May 16, 2023

The signing of Vietnam’s Power Development Plan (PDP) VIII marks a milestone for sustainable energy development and increased international investment

Read more

May 15, 2023

EuroCham in the News

Read more

May 15, 2023

EuroCham receives award from the Vietnam Investment Review for promoting foreign investment in Vietnam

Read more

May 15, 2023

EuroCham joins Hoan My Medical Group at Prima’s grand unveiling

Read more

May 12, 2023

EuroCham raises concerns on Credit Institutions Law at meeting with Vietnam’s National Assembly’s Economic Committee

Read more

May 12, 2023

EuroCham holds productive meetings in Hanoi with key Vietnamese officials

Read more

May 12, 2023

[Work @ EuroCham] JUNIOR EXTERNAL RELATIONS OFFICER

Read more

May 12, 2023

Spanish Chamber of Commerce Vietnam holds official launching, paving the way for stronger Spain-Vietnam economic ties

Read more

May 11, 2023

Successful resumption of Business Thursdays series, hosted by EuroCham for May, attracts over 120 attendees

Read more

May 11, 2023

VIETRADE panel: FAABS Chairman Jesper Clausen Urges Vietnam to Embrace EVFTA and Promote Sustainable Products for EU Market Success

Read more

May 10, 2023

Chairman Gabor Fluit joins EU Delegation Europe Day celebration in Ho Chi Minh City

Read more

May 09, 2023

HAPPY EUROPE DAY!

Read more

May 09, 2023

EuroCham representatives attend workshop on draft Law on E-Transactions organized by the Science, Technology and Environment Committee of the National Assembly

Read more

May 09, 2023

[Work @ EuroCham] ADVOCACY MANAGER

Read more

May 08, 2023

The EuroCham Digital Sector Committee hosts webinar on insights and guidance for ensuring compliance with Vietnam’s Personal Data Protection Decree

Read more

May 08, 2023

EuroCham in the News

Read more

May 07, 2023

EuroCham attends activities as part of Luxembourg’s mission to Vietnam, along with Vietnam’s Minister of Industry and Trade Nguyen Hong Dien as well as Luxembourg Prime Minister Xavier Bettel

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