Bike manufacturing line of Piaggio Vietnam’s manufacturing facility in Binh Xuyen Industrial Park, Vinh Phuc Province. (Photograph: VNA)
The boldness of European enterprises in Vietnam’s financial system declined for a second quarter however the S-shaped nation nonetheless stays within the high 5 international funding locations for his or her firms, the newest Enterprise Local weather Index (BCI) printed by the European Chamber of Commerce in Vietnam (EuroCham) confirmed final week.
The BCI dropped beneath the baseline to 48.0 in This fall 2022, a drop of 14.2 factors in comparison with three months in the past and 25 factors from the primary quarter of the yr.
Although Vietnam’s financial system grew over 8% for the entire of 2022, this information comes amid continued international financial volatility ensuing from a storms of things together with a slowdown in international progress, rate of interest hikes, sustained inflation and bruised shopper confidence.
The variety of firms anticipating financial stabilisation or enchancment in This fall dropped to 27% from 42% in Q3, whereas the variety of corporations with rising sense of pessimism doubled from 19% in Q3 to 38% in This fall.
“Issues had been positively much less optimistic within the fourth quarter of 2022 than they had been earlier within the yr,” mentioned EuroCham Chairman Alain Cany.
Nevertheless, in line with him, this shouldn’t be considered as a trigger for concern.
“In actual fact, Vietnam’s financial alternatives proceed to exceed these of its regional and worldwide friends. That is evident from the truth that so lots of EuroCham’s members think about Việt Nam central to their international funding methods,” Cany mentioned.
The report mentioned 41% of respondents said their firm is shifting operations from China to Vietnam, up from 13% within the third quarter, whereas almost 35% of corporations ranked Vietnam among the many high 5 international funding locations for his or her firm, with 12% stating that Việt Nam was their agency’s high funding web site globally.
Nevertheless, the report additionally identified three most vital regulatory obstacles to international firms working in Vietnam, together with a scarcity of readability concerning guidelines and laws (51%), administrative points (41%) and visa and work allow difficulties (30%).
Regardless of that, 58% had been glad with the eye of policymakers paid to enterprise wants when setting related insurance policies.
As well as, BCI individuals reported that the EU-Vietnam Free Commerce Settlement (EVFTA) had a optimistic impact on the expansion of their companies, their monetary well being via tariff reductions and the power of their provide chains./. VNA