A majority of European enterprises perceive their business outlook as ‘positive’
NDO – Business confidence, outlook and expectations for the future among European businesses in Vietnam continued to rise from the previous quarter, according to the Business Climate Index (BCI) survey conducted by the European Chamber of Commerce in Vietnam (EuroCham) for the fourth quarter of 2014.
The survey results announced on January 22 indicated that the BCI increased from 74 points to 78 points in the fourth quarter of 2014 which was close to the highest results recorded in early 2011.
The BCI was driven by a wide perception of favourable macroeconomic conditions and a high expectancy held by European enterprises for the ongoing negotiations of the Vietnam-EU FTA.
According to EuroCham Executive Director Csaba Bundik, the results of the BCI reflected the expectations of European enterprises in Vietnam for the ongoing negotiations of the Vietnam-EU Free Trade Agreement (FTA), but their confidence will decline sharply if the ongoing negotiations cannot come to a conclusion within a reasonable period of time.
The number of European businesses affirming their business situation as positive continued to increase with 5% of European businesses perceiving the situation as ‘excellent’, 52% reporting ‘good’ and 33% reporting ‘neutral’.
In addition, the majority of European enterprises perceive their business outlook as ‘positive’ with 62% of them expecting ‘good’ business conditions.
They also expect an increase in the inflation rate over the next six months from 4.61% in the previous survey to 5.78% in the fourth quarter as they believe the overall business situation in Vietnam will improve, helping accelerating the economy.
However, about 59% of European businesses reported the macroeconomic outlook for Vietnam as ‘stabilisation and improvement’, a slight decrease from 61% in the last quarter and 21% of them expected ‘deterioration of the macroeconomic conditions’, an increase compared to last quarter’s 15%.
European enterprises’ confidence in Vietnam on the rise Related image(s)
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