April 07, 2020

Latest EuroCham Business Climate Index (BCI) with focus on COVID-19

COVID-19 has had a significant, negative impact on European business in Vietnam, according to the latest Business Climate Index (“BCI”) from the European Chamber of Commerce (“EuroCham”). 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.

Following similar trends around the world, where the impacts of COVID-19 have hit international trade and investment, the EuroCham BCI plunged to its lowest-ever score of 26 per cent in the first quarter of 2020. That represents a fall of 51 points from the 77 per cent recorded in late 2019. This drop in positive sentiment is a direct result of the impact of COVID-19: Over 90 per cent of business leaders said that COVID-19 has had a negative impact on their enterprise, with more than half reporting a ‘significant’ negative impact. Meanwhile, almost 80 per cent said that their business had incurred higher costs from measures taken to protect their workers and prevent the spread of the virus.

Despite the negative financial impact of COVID-19, European companies are taking important measures to protect both the health and the livelihoods of their workforce. Four out of five business leaders are confident that they will be able to retain at least 70 per cent of their staff over the next quarter. Meanwhile, 80 per cent of businesses have asked their staff to work from home to prevent the spread of the virus.
EuroCham members also welcomed Government measures introduced in Directive 11 to support businesses during the pandemic. A deferral of tax and land rent was the most popular provision, with a suspension of social insurance contributions coming a close second. The chamber also asked European business leaders what other measures would be most helpful for their enterprises, and around three-quarters said a deferral of other taxes such as CIT, PIT, VAT and SCT would be the most welcome support for their companies.

Commenting on the BCI, EuroCham Chairman Nicolas Audier said:
“This data shows that COVID-19 is having a deep and serious impact on European business in Vietnam. However, it is important to remember that this is a global pandemic, and enterprises around the world are suffering from the impacts of this crisis. There is also no doubt that, without the swift and decisive actions of the Government, the situation here could have been much worse. For this reason, our members welcome the measures announced so far, which will provide a lifeline to companies and their workers during this difficult time.

“COVID-19 is a fast-moving health crisis, and it is creating unprecedented challenges for businesses of all shapes and sizes and in all sectors and industries. Therefore, further actions could soon be required to help both domestic and foreign enterprises weather this storm and get back to business as usual as soon as possible. EuroCham is committed to Vietnam’s long-term economic growth, and our members remain available to share their insights and recommendations to help minimise the disruption of COVID-19 on business operations and – above all – to protect the health and wellbeing of people in Vietnam.”

Check out the report here

More News

See all

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

June 07, 2024

EuroCham advocates for robust personal data protection as Vietnam shapes Data Protection Law

Read more

May 31, 2024

EuroCham Sustainable Finance Sector Committee (SFSC) hosts inaugural policy Dialogue on Sustainable Trade and Trade Finance

Read more

May 31, 2024

EuroCham meeting with the Ho Chi Minh City Customs Department

Read more

May 31, 2024

Prime Minister’s Advisory Council for Administrative Procedure Reform holds training program in Hai Phong

Read more

May 31, 2024

Luncheon with EU Delegation and DG INTPA highlights sustainable development opportunities

Read more

May 30, 2024

EuroCham’s Transportation & Logistics Sector Committee speaks at Hoa Sen University’s HCMC Logistics Forum

Read more

May 30, 2024

EuroCham Vietnam’s inaugural Tall Building Forum draws industry leaders and policymakers to explore the future of urban living

Read more

May 30, 2024

EuroCham Vietnam meets EU Ambassador to ASEAN to discuss priorities in EU-ASEAN Strategic Partnership

Read more

May 30, 2024

EuroCham insights shape policy discussions at ACCA Asia Pacific Dialogue 2024

Read more

May 29, 2024

[CORPORATE PARTNERS] BASF paves the way for young painters at WorldSkills Finals Lyon 2024

Read more

May 28, 2024

EuroCham insights shape policy discussions at ACCA Asia Pacific Dialogue 2024

Read more

May 24, 2024

EuroCham engages in the EU-Vietnam Research & Innovation Community Meeting

Read more

May 24, 2024

EuroCham participated in a consultation on Vietnam’s Direct Power Purchase Agreement Framework

Read more

May 24, 2024

Productive Dialogue at the Law on Standards and Technical regulations Consultation

Read more

May 24, 2024

EuroCham emphasises soft skills and sustainability training at a forum organised by the Ministry of Education and Training

Read more

May 24, 2024

[Sector Committee Spotlight] Transport and Logistics Sector Committee: driving Vietnam’s progress

Read more

May 22, 2024

[CORPORATE PARTNERS] BASF expands its biomass balance portfolio for selected chemical intermediates

Read more

May 22, 2024

[Work @ EuroCham] GEFE PROJECT OFFICER – based in Ho Chi Minh City

Read more

May 22, 2024

[Work @ EuroCham] CORPORATE RELATIONS cum MEMBERSHIP EXECUTIVE – based in Ho Chi Minh City

Read more

May 17, 2024

EuroCham convenes collaborative meeting with the EU Ambassador to Vietnam

Read more

May 17, 2024

Traditional Breakfast Commemorates Norwegian Constitution Day’s 210th Anniversary

Read more

May 17, 2024

EuroCham engages in Information Exchange Conference on Power Supply 2024

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