EuroCham: Vietnam’s business climate index increases slightly

There has been a slight increase in business confidence and outlook among European enterprises in Vietnam, according to the EuroCham Business Climate Index survey announced on February 1.

The results of the survey showed that the EuroCham business climate index rose to 56 points after dropping 11 points in the fourth quarter of last year.

About 36 percent of surveyed businesses express pleasure at their current business operation in Vietnam, while 26 percent are still pessimistic.

More than 47 percent are expected to see a middle-term increase in their trade revenue and 27 percent want to maintain their current business operation. Only eight percent voice concern over the negative impact of Vietnam’s inflation rate.

Regarding recruitment place in 2012, 40 percent of respondents say they will employ more workers, 39 percent want to maintain their current staff level, and 14 percent will reduce the number of employees in Vietnam.

The Chairman of the European Chamber of Commerce in Vietnam (EuroCham), Alain Cany, said the index reflects the confidence of EuroCham members in Vietnam’s business prospects. However, he said European businesses are still worried about the country’s equitisition process and macro-economic stability.

According to Dr. Matthias Duhn, EuroCham executive director, the debt crisis in the Euro zone has affected investors’ decisions in Asia. Many investors are keen on the Southeast Asian market, including Vietnam. Therefore, he said, Vietnam should sharpen its competitive edge to attract more investors. – VOV

Tags: Vietnam business climate index

Posted by VBN on Feb 2 2012. Filed under Economy News, Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry