European firms more positive about Vietnam’s business climate

Update: 09:22 | 23/07/2020
European businesses are more positive about Vietnam’s trade and investment environment in the first few months after COVID-19, the Business Climate Index (BCI) unveiled by the European Chamber of Commerce in Vietnam (EuroCham) on July 22 showed.
TIN LIÊN QUAN
PM holds meeting with outstanding business leaders from Board IV, YPO
UNICEF and Saigon Innovation Hub incubate socially innovative ideas on Climate Action from adolescents and youth
european firms more positive about vietnams business climate
Chairman of EuroCham Nicolas Audier. (Photo: VNA)

Accordingly, during the COVID-19 pandemic, when social distancing and travel restrictions brought normal business operations to a halt, the EuroCham BCI fell to its lowest-ever score of 27 percent in the first quarter of 2020.

However, after the Government implemented a world-leading public-health and economic response, Vietnam was able to return to business-as-usual much sooner than other countries, who continue to struggle with the impact of the virus.

As a result, the positive sentiment of European business leaders began to bounce back, recording a 7 percent jump between February and April to reach 34 percent.

The BCI also found that more than 25 percent of European enterprises had benefitted from the Government’s postponement of the tax, while around one-in-five had benefitted from a reduction in rent and a suspension of social insurance contributions.

Kien Giang ready to welcome new investment waves

Kien Giang ready to welcome new investment waves

Despite these positive signs, however, challenges remain for European enterprises, according to the survey.

A large proportion, 88 percent of the interviewed businesses, felt negative effects as a result of the pandemic in the three months to April. Meanwhile, more than 50 percent said that a reduction in taxes such as corporate income tax, personal income tax and value-added tax would help them emerge stronger from the crisis.

Chairman of EuroCham Nicolas Audier said: “This data is further evidence that Vietnam is one of the international success stories of the COVID-19 pandemic. It also shows that the Government’s effective and sure-footed handling has had a tangible impact on the confidence of European business leaders.”

The next challenge will be adapting to the “new normal” where COVID-19 is present in other countries but where global trade remains essential to domestic economic growth. This will require imaginative solutions to address issues such as the return of foreign experts on whom many international companies depend, he added.

Southernmost province seeks ways to achieve export target

Southernmost province seeks ways to achieve export target

The southernmost province of Ca Mau is working hard to support local seafood businesses to achieve the year’s seafood export target of 1.2 billion USD.

US businesses keen on investment opportunities in Vietnam

US businesses keen on investment opportunities in Vietnam

Over 100 businesses in the United States operating in the fields of finance, energy, technology, e-commerce, health care, and insurance participated in a teleconference to ...

Long An – a bright spot of investment and business in Vietnam

Long An – a bright spot of investment and business in Vietnam

TGVN. Reasonable infrastructure investment policies and policies have helped Long An become a bright spot to attract foreign direct investment.

(Source: VNA)