Vietnam business landscape brightening: EuroCham

(VOVWORLD) - EuroCham Vietnam's quarterly Business Confidence Index (BCI) has nudged up to 45.1 in the third quarter of 2023, from 43.5 in the previous quarter. While still below the 50-point threshold for four straight quarters, this small rise indicates emerging positive momentum.

Vietnam business landscape brightening: EuroCham - ảnh 1(Photo: VOV) 

According to the EuroCham report, business sentiment appears to be in flux. Between Q2 and Q3, there was a 3% drop in pessimism regarding the current situation, while the positive perspective increased 6% and the neutral perspective increased 4%.

EuroCham said Vietnam’s global investment appeal remains strong. A notable 63% of surveyed businesses put Vietnam in their top 10 FDI destinations. Even more striking, one third ranked Vietnam among their top three, and an impressive 16% called Vietnam their number one investment destination. Reflecting this confidence, more than half of those surveyed plan to increase their FDI in the Vietnamese market by the end of the year.

Gabor Fluit, chairman of EuroCham, said Europe stands firmly behind Vietnam. Nearly one third of EuroCham members ranking Vietnam as a top-three investment location sends a powerful message about their faith in this partnership.

More than two years after its implementation, the EU-Vietnam Free Trade Agreement (EVFTA) is continuing to have a strong positive impact on the Vietnamese business landscape.

Over 60% of companies called the deal beneficial, citing tariff cuts as the top perk, followed by improved competitiveness in the nation as a whole, reduced trade barriers, expanded partnerships with local firms, and increased access to the Vietnamese market.