Most European businesses stay loyal to Vietnamese market

The 12th quarterly Euro Cham Business Climate Index Survey released on August 27, shows business confidence and outlook among European businesses in Vietnam remains unchanged from last quarter.

European businesses participating in the survey expressed increasing concerns on the current business situation, rising inflation rates, and the overall macro-economic outlook in Vietnam.

In addition, in the past six months, about one fifth of the respondents considered moving their business to another country in ASEAN. This signaled growing competitiveness in other markets in the region.

Assessing respondents perceived position of Vietnam in a regional business context, 45 percent considered other ASEAN markets as better destination for business than Vietnam, 37 percent said that business environment in Vietnam was average, and only 18 percent found Vietnam at top tier.

However, more than 80 percent of respondents have not considered shifting their business yet, showing that a majority of Euro Cham members are sticking to the Vietnamese market in the long term.

More than half of the businesses that participated in the survey are active in the services industry, a quarter in manufacturing and the rest in trading and other activities.

By My Hanh – Translated by Thuy Doan

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