European business sentiment inches up
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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.
Questions & Answers
Q.What is the current business sentiment among European companies operating in Vietnam?
What is the current business sentiment among European companies operating in Vietnam?
The Business Climate Index for European companies in Vietnam reached 18.3 in Q3, representing a 3 percentage point increase. This indicates improving perceptions of Vietnam’s economic outlook, rising from a historic low of 15 points in September.
Q.What percentage of business leaders expect the economic outlook to improve next quarter?
What percentage of business leaders expect the economic outlook to improve next quarter?
Forty-nine percent of business leaders and investors surveyed anticipate a stabilising and improving economic outlook for the next quarter. This is a significant rise from less than 19 percent who held this view in the second quarter.
Q.What challenges are European businesses still facing in Vietnam?
What challenges are European businesses still facing in Vietnam?
Despite improving sentiment, businesses are still encountering difficulties. Sixty-six percent were affected by staff leaving after the fourth wave lockdown, and 39 percent reported reduced operations after reopening. International travel restrictions also impacted almost two-thirds of businesses.
Q.How many European companies were surveyed to gather this business sentiment data?
How many European companies were surveyed to gather this business sentiment data?
The online survey conducted by EuroCham, which assessed business sentiment, polled 154 executives. These executives represent European companies that are operating within Vietnam.
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