Việt Nam remains top 5 global investment sites for EU firms despite sentiment slide

Vietnam, January 17 –

HÀ NỘI — European business confidence in Vietnam’s economy fell in the second quarter, but the S-shaped country remains among the top five global investment destinations for businesses. The latest Business Climate Index (BCI) Vietnam Commerce (EuroCham) published by the European Chamber of Commerce showed last week.

The BCI fell below baseline at 48.0 in Q4 2022, down 14.2 points from three months ago and down 25 points from Q1.

Vietnam’s economy grew by more than 8% in 2022 as a whole, but the data reflects the impact of a variety of factors, including a slowing global economy, rising interest rates, persistent inflation and hurt consumer confidence. This was achieved in the midst of continued volatility in the global economy.

The number of companies expecting economic stability or improvement in the fourth quarter fell to 27% from 42% in the third quarter, while the number of companies feeling more pessimistic was 19 in the third quarter. % to 38% in Q4.

“The fourth quarter of 2022 was definitely worse than the beginning of the year,” said EuroCham President Alain Cany.

However, according to him, this should not be seen as a cause for concern.

“In fact, Vietnam’s economic opportunities continue to exceed those of its regional and international peers. am.”

According to the report, 41% of respondents said their company was transferring operations from China to Vietnam, up from 13% in the third quarter, and about 35% of companies said Vietnam was one of their global investments. It ranks in the top 5 ahead. , 12% say Vietnam is the world’s best investment site for their company.

However, the report also cited a lack of clarity regarding rules and regulations (51%), administrative problems (41%), and difficulties with visas and work permits (30% cents).

Nonetheless, 58% were satisfied with policy makers’ attention to business needs when setting relevant policies.

In addition, BCI participants report that the EU-Vietnam Free Trade Agreement (EVFTA) has had a positive effect on business growth, financial health through tariff reductions, and supply chain strength. — VNS

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