The European Chamber of Commerce in Vietnam (EuroCham) recently announced the results of the 13th quarterly EuroCham Business Climate Index (BCI) survey for the fourth quarter of 2013 in Vietnam. Companies that participated in the survey are mainly involved in service, trading and manufacturing.
According to EuroCham, results of the survey show that business confidence and outlook among European businesses in Vietnam remains unchanged for the third time in the third quarter, stagnating at 50.
Legislative changes during 2013 have negatively impacted business operations. 50 percent of respondents found that legislative changes negatively impacted their business because of lack of or inconsistent implementation of legislation while only 7 percent recognised the legislative changes as positive in 2013.
Looking forward to 2014, half of the respondents expect legislation to continue to have a negative impact on their business. 89 percent of respondents therefore strongly believe that the Government should take note of the issues described in the EuroCham Whitebook 2014.
The key findings of this quarter’s BCI indicate the following four key challenges to doing business in Vietnam: corruption (72 percent); lack of or inconsistent implementation of legislation (67 percent); administrative difficulties (52 percent); and lack of transparency (45 percent).
The survey says the positive development in investment plans and expected business orders has translated into increased recruitment plans of EuroCham members in Vietnam. Reported investment plans are increasing with the number of respondents expecting to increase investments in Vietnam growing from 34 percent last quarter to 41 percent this quarter. In line with this development, the expected number of business orders has continued to grow – to 67 percent (from 61 percent and 53 percent the past two quarters, respectively). Therefore, the positive development in investment plans and business orders has helped increase employment. The number of respondents expecting to increase their headcounts remains at 47 percent. It should also be mentioned that the respondents found a number of very positive aspects with doing business in Vietnam, of which the most important are: business opportunities (60 percent); future growth of the market (60 percent); and Vietnam as a regional hub for export (19 percent).
In general, Business confidence and outlook among European businesses in Vietnam remains unchanged from the previous quarter.
LP
Đăng ký: VietNam News