According to a recent survey carried out by European Chamber of Commerce in Vietnam (EuroCham), an organization that represents 1,000 European businesses in Vietnam, European companies remain confident about their business in Vietnam.
The survey findings suggest that the 2018’s first quarter’s Business Climate Index (BCI) reached 78 index points (out of 100), a 1 point increase compared to the last quarter of 2017. In addition, almost ⅔ of the surveyed companies said their business situation was either ‘excellent’ or ‘good’. Compared to the previous quarter, there were 10% less ‘excellent’ votes, and 7% more responses describing the current situation as ‘good’.
Businesses also mentioned they are willing to invest more in Vietnam, with 19% saying their investments are about to ‘increase significantly’, while 27% said their investments are going to ‘increase a little bit’.
One of the major obstacles for operating in Vietnam, according to the surveyed companies, is the legal framework. 37% of the companies mentioned that there was no significant development in regulatory landscape. In addition, 16% said they saw regulations became ‘slightly complicated’, and 18% ‘significantly more complicated’.
Eurpean companies’ view on Vietnam’s regulatory environment
- Stayed on the same level — 37%
- Slightly more complicated — 16%
- Significantly more complicated — 18%
- Slightly improved — 25%
- Significantly improved — 2%
- No insight — 2%
According to the comments of Nicolas Audier, Co-Chairman of EuroCham: “The BCI survey results for Q1 2018 continue to show positive expectations from EuroCham members towards Vietnam, albeit not at the same levels of optimism that we saw in 2016…”