At the event, Joaquim Torrinha, deputy director of EuroCham announced the results of the fourth quarter European business climate index (BCI) survey, saying that In the fourth quarter of 2017, the overall index was 77, staying level with the previous quarter.
Remarkably, around 50 per cent of European investors said that they plan to expand investment in the country in the next quarter.
Manufacturing will be among the focuses of investment expansion, he told VIR.
Around 64 per cent of EuroCham member companies are optimistic about the business outlook in the next quarter, down from 66 per cent in the second quarter of 2017. Meanwhile, the “neutral” attitude has dropped by 6 per cent this quarter to 15.9 per cent and “not good” has risen by 3 per cent to 11.6 per cent since the last survey. The “very poor” utlook stayed the same.
The BCI also states that nearly 50 per cent of European businesses in Vietnam look to employ more labourers in the next quarter, while 38 per cent will maintain their workforce in Vietnam.
Inflation is not a major concern for EuroCham members. 84 per cent believe inflation will have either “no impact” (19 per cent) or just a “minor impact” (65 per cent, the majority of the respondents).
Close to a quarter of the respondents believe it may have a “significant impact” (20 per cent, slight decree from the second quarter of 2017). Fears that inflation might threaten EuroCham members’ business are hereby dispelled with a resounding absence of answers in this direction (2 per cent).
The positive business outlook came from the positive business performance in the last quarter.
When asked about the business situation in the last quarter, 43.5 per cent responded “good” and 18.8 per cent said “excellent.” Negative responses remain marginal.
EuroCham has 950 members in all. Around 90 per cent are in Ho Chi Minh City and Hanoi, but it has more than 30 members in Central Vietnam and a number of others with branches in this region.