Vietnam remains among the world's top investment destinations: EuroCham Chairman

VCN – In the fourth quarter of 2022, although the European business community's confidence in the business environment in Vietnam decreases, Vietnam remains one of the world's top investment destinations.
EVFTA, EVIPA usher in a new era inVietnam - EU investment trade: EuroCham Chairman EVFTA, EVIPA usher in a new era inVietnam - EU investment trade: EuroCham Chairman
Vietnam remains among the world's top investment destinations: EuroCham Chairman

EuroCham Business Climate Index

The EuroCham Business Climate Index (BCI) reported by the European Chamber of Commerce in Vietnam (EuroCham) and provided by YouGov Decision Lab shows that the level of confidence of European companies investing in Vietnam fell to 48 points in the last quarter decreased by 14.2 points compared with three previous months and down 25 points from the first quarter of 2022.

Though Vietnam's economy grew by 5.92% in the fourth quarter year-on-year and 8.02% for the whole year, this data came amid continued global economic volatility resulting from factors, including a slowdown in global growth, interest rate hikes, sustained inflation and bruised consumer confidence. As a result, only 27% of respondents expect the economy to stabilise and improve in the first quarter of this year. Moreover, the number of respondents predicting an economic recession also doubled.

Decision Lab CEO Thue Quist Thomasen also said that in the fourth quarter of 2022, fluctuations in the banking and real estate sectors in Vietnam affected foreign investors' sentiment. However, not all sectors are volatile, as economic sectors directly dependent on domestic consumption have a more positive outlook.

EuroCham Chairman Alain Cany said that although the difficult situation may continue in 2023, Vietnam's economic opportunities exceed its regional and international competitors. This is evident from the fact that many of EuroCham's members consider Vietnam central to their global investment strategies.

"Foreign direct investment from Europe and worldwide remains high and continues to grow, especially in Vietnam's green industries and manufacturing. Motivated by the FDI capital, strong economic foundation and sustainable commitment of Vietnam, the country is still among the top investment destinations in the world. Therefore, the European firms still believe in the Vietnamese market," Cany said.

According to BCI results, 41% of respondents said their companies are moving operations from China to Vietnam, an increase of 13% in the third quarter. In addition, about 35% of respondents ranked Vietnam among the top five global investment destinations for their companies, with 12% saying that Vietnam was their firm's top investment site internationally.

However, EU firms' representatives said three barriers to their operation in Vietnam include unclear rules and regulations, administrative issues, and visa and work permit difficulties.

According to experts, European foreign investment in Vietnam in the coming time will be strongly affected by Europe's new trade policies when prioritising digital transformation and developing the green economy. Therefore, to attract FDI from the EU, Vietnam should build an appropriate policy framework and reduce difficulties in administrative procedures.

Regarding the EU-Vietnam Free Trade Agreement (EVFTA), the survey found that about half of the respondents believe that the EVFTA is related or very related to business activities.

The businesses also said that new-generation free trade agreements positively impact the development and financial health of businesses through tariff reductions and the strength of supply chains. In addition, some business representatives said that EVFTA helps customers benefit from tax reductions, so they tend to order in Vietnam.

The BCI results also show concerns about EVFTA's administrative procedures, lack of understanding about the agreement and technical trade barriers have decreased.

By HuongDiu/Ngoc Loan

Related News

Enhancing the effectiveness of e-C/O exchange, creating a favorable business environment

Enhancing the effectiveness of e-C/O exchange, creating a favorable business environment

VCN - Increasing administrative procedures conducted on an electronic platform is an effective approach to improving the business environment, creating favorable conditions, and promoting production and business activities. In this regard, the successful issuance of electronic C/Os between Vietnam and other countries is a significant effort to facilitate export-import growth.
Cut down on "nooks and crannies" and drastically improve the business environment

Cut down on "nooks and crannies" and drastically improve the business environment

VCN - Recently, the Prime Minister issued Directive No. 16/CT-TTg (Directive 16) requiring ministries, branches and localities to continue promoting reduction and simplification of administrative procedures to serve the people, enterprise. According to Mr. Phan Duc Hieu, Standing Member of the National Assembly's Economic Committee, Thai Binh Provincial National Assembly delegate, the Directive demonstrates the Government's determination to reform the business environment and requires continued change. more substantive thinking and reform.
Increasing foreign investment resources from improving the business environment

Increasing foreign investment resources from improving the business environment

VCN - In the 2 years 2024-2025, the proportion of foreign invested enterprises (FDI) expected to expand production and business has decreased compared to previous years, reflecting a more cautious trend of FDI enterprises. due to the impact of the current unpredictable global economic context.
Binh Dinh Customs conducts administrative reform, benefiting businesses

Binh Dinh Customs conducts administrative reform, benefiting businesses

VCN - Binh Dinh Customs Department has made clear changes in administrative reform to facilitate and speed up customs clearance, reducing costs and accelerating exports and production.

Latest News

Firm policy framework crucial for creative economy: Experts

Firm policy framework crucial for creative economy: Experts

A firm policy framework is crucial to nurture the creative economy, one with “unlimited” development potential, according to Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM).
Vietnam’s anti-corruption efforts help boost economic growth: Canadian experts

Vietnam’s anti-corruption efforts help boost economic growth: Canadian experts

Vietnam’s anti-corruption efforts have helped spur its economic growth, Director of the Canada-Vietnam Trade Council Julie Nguyen and Professor of Business at Centennial College in Toronto Luis Silva shared the view.
Accelerated green economy transition efforts needed for 2024 GDP target

Accelerated green economy transition efforts needed for 2024 GDP target

Vietnam’s 2024 economic growth target of 6.5% is challenging, with weak consumption demand and exchange rate risks, so signals a pressing need for hastening energy transition towards a green economy, a conference to launch the Vietnam Annual Economic Report 2024 heard.
Foreign media spotlights Russian President Putin’s Vietnam visit

Foreign media spotlights Russian President Putin’s Vietnam visit

Russian President Vladimir Putin’s freshly-concluded state visit to Vietnam has grabbed the headlines of many foreign media outlets, including those in Russia.

More News

Total credit demand expected to improve in the last months of the year

Total credit demand expected to improve in the last months of the year

VCN - According to evaluations, the overall domestic credit demand has not yet seen a strong recovery. Therefore, promoting credit growth must continue to be a priority through various solutions.
Vietnam Energy Outlook Report 2024 launched

Vietnam Energy Outlook Report 2024 launched

Vietnam's target of achieving the climate neutrality by 2050 is not only technically feasible but also the most cost-effective scenario, according to a report developed by Vietnam’s Electricity and Renewable Energy Authority, the Danish Energy Agency (DEA) and the Embassy of Denmark in Vietnam.
Russian President Vladimir Putin starts state visit to Vietnam

Russian President Vladimir Putin starts state visit to Vietnam

Russian President Vladimir Vladimirovich Putin and his entourage arrived in Hanoi on June 19 night, starting a state visit to Vietnam from June 19-20 at the invitation of General Secretary of the Central Committee of the Communist Party of Vietnam Nguyen Phu Trong.
President Putin’s state visit to strengthen Vietnam - Russia ties

President Putin’s state visit to strengthen Vietnam - Russia ties

During his 5th visit to Vietnam on June 19 and 20, President Vladimir Putin and a high-ranking delegation of Russia are scheduled to have talks and meetings with senior leaders of Vietnam and some other activities, thereby continuing to enhance and develop the two countries' relations.
Deputy PM orders strict punishment against fishing violations

Deputy PM orders strict punishment against fishing violations

Việt Nam has recorded significant achievements after seven years of efforts to have the illegal fishing label lifted, notably the completion of a legal framework, the good management of fishing vessels, sound traceability, and enhanced law enforcement efforts.
New decree to set stage for innovative start-up economy

New decree to set stage for innovative start-up economy

Vietnam is developing a decree to promote innovative start-ups, with the aspiration of building an innovation-driven economy in line with digital transformation and sustainable development.
"Three-legged tripod" for Vietnamese goods to take part in global through e-commerce

"Three-legged tripod" for Vietnamese goods to take part in global through e-commerce

VCN - Mr. Gijae Seong, Managing Director of Amazon Global Selling Vietnam shares about the changes in the cross-border e-commerce industry in Vietnam and efforts to promote the success of Vietnamese products and brands when participating in the global e-commerce supply chain.
Vietnam eyes lucrative Halal market with growing Muslim population

Vietnam eyes lucrative Halal market with growing Muslim population

Experts see a golden opportunity for Vietnam to tap into the booming Halal market, fueled by a surging global Muslim population.
Increasing consumer protection responsibility in the electronic environment

Increasing consumer protection responsibility in the electronic environment

VCN - Along with its robust growth, e-commerce has introduced numerous new issues and challenges for economic and social development, including the area of consumer rights protection
Read More

Your care

Latest Most read
Firm policy framework crucial for creative economy: Experts

Firm policy framework crucial for creative economy: Experts

A firm policy framework is crucial to nurture the creative economy, one with “unlimited” development potential, according to Dr. Tran Thi Hong Minh, Director of the Central Institute for Economic Management (CIEM).
Vietnam’s anti-corruption efforts help boost economic growth: Canadian experts

Vietnam’s anti-corruption efforts help boost economic growth: Canadian experts

Vietnam’s anti-corruption efforts have helped spur its economic growth, Director of the Canada-Vietnam Trade Council Julie Nguyen and Professor of Business at Centennial College in Toronto Luis Silva shared the view.
Accelerated green economy transition efforts needed for 2024 GDP target

Accelerated green economy transition efforts needed for 2024 GDP target

Vietnam’s 2024 economic growth target of 6.5% is challenging, with weak consumption demand and exchange rate risks, so signals a pressing need for hastening energy transition towards a green economy, a conference to launch the Vietnam Annual Economic Report 2024 heard.
Foreign media spotlights Russian President Putin’s Vietnam visit

Foreign media spotlights Russian President Putin’s Vietnam visit

Russian President Vladimir Putin’s freshly-concluded state visit to Vietnam has grabbed the headlines of many foreign media outlets, including those in Russia.
Total credit demand expected to improve in the last months of the year

Total credit demand expected to improve in the last months of the year

VCN - According to evaluations, the overall domestic credit demand has not yet seen a strong recovery. Therefore, promoting credit growth must continue to be a priority through various solutions.
Mobile Version