European business sentiment inches up

The Business Climate Index of European companies rose 3 percentage points to 18.3 in Q3, showing improving perceptions on Vietnam’s economic outlook.

The rise from the historic low of 15 points in September came as business leaders were more optimistic about Vietnam’s business environment as the country relaxed social distancing measures and aimed toward a new normal, according to a survey of European businesses by EuroCham.

Forty-nine percent of business leaders and investors predicted a stabilizing and improving economic outlook next quarter, compared to less than 19 percent in the second quarter.

“With the pandemic now back under control in Vietnam, the confidence and optimism of European business leaders should continue to climb as companies get back to normal and consumer confidence rises,” said EuroCham chairman Alain Cany.

However, despite this positive progress, business leaders are still encountering challenges in their commercial operations, he added.

Sixty-six percent of businesses were affected by staff leaving work after the fourth wave lockdown.

Thirty-nine percent of respondents said they saw a reduction in operations after reopening.

Prolonged international travel restrictions affected almost two-thirds of European businesses in Vietnam.

The online survey polled 154 executives of European companies in Vietnam.