FOX LOGISTICS SERVICE COMPANY LIMITED
Address 273/3 Nguyen Trong Tuyen, Ward 10, Phu Nhuan District, Ho Chi Minh City, Vietnam
Counter Address 9A1 Street 48, Tan Phong Ward, District 7, Ho Chi Minh City, Vietnam
According to the "Business Confidence Index (BCI) Q3/2023" report from the European Chamber of Commerce in Vietnam (EuroCham), the confidence of the European business community in Vietnam is showing signs of recovery, bringing hope for Vietnam's business environment after a year of fluctuations.
Specifically, the BCI for Q3/2023 has increased to 45.1 points compared to 43.5 points in Q2/2023, indicating a positive shift in the business sentiment of European enterprises in Vietnam. On the other hand, pessimism about the current business situation has decreased by 3%, while positive and neutral perspectives have increased by 6% and 4%, respectively.
The survey results of the BCI for Q3/2023 also indicate that compared to Q2/2023, the number of businesses expecting stability and economic growth in the upcoming quarter has increased by 11%. Businesses forecasting a negative trend in Q4/2023 have decreased by 5%.
Regarding the prospects of foreign direct investment (FDI), Vietnam's global investment attractiveness remains strong, with 63% of surveyed businesses ranking Vietnam in the top 10 FDI destinations. Notably, 31% place Vietnam in the top 3, with an impressive 16% considering it the top investment destination. To reinforce this confidence, over half of the surveyed businesses predict an increase in foreign direct investment in Vietnam as 2023 draws to a close.
According to the report, 58% of surveyed businesses believe that streamlining cumbersome bureaucracy is the most important factor, while 48% support enhancing the legal environment. One-third calls for upgrading transportation infrastructure, and 22% emphasize the relaxation of visa and work permit requirements for foreign experts.
Sustainability is becoming a top priority for European companies in Vietnam, with 80% of surveyed businesses stating that compliance with ESG (environmental, social, and governance sustainability) is crucial at a high or moderate level. 80% of businesses prioritize ESG and highlight a commitment to responsible growth by integrating green activities into business strategies, ensuring both profit and progress.
The Q3/2023 BCI report also shows that more than two years after the implementation of the EU-Vietnam Free Trade Agreement (EVFTA), it continues to strongly impact Vietnam's business landscape. Over 60% of businesses believe that this agreement's top benefits include tax reduction, improved competitiveness in Vietnam, reduced trade barriers, expanded partnerships with local companies, and increased access to the Vietnamese market.
According to EuroCham Chairman Gabor Fluit, the GDP and FDI growth rates in Q3/2023 are promising, with nearly one-third of EuroCham members ranking Vietnam as one of the top 3 investment destinations. However, challenges persist in export and real estate sectors. Therefore, to achieve progress, addressing administrative reforms, unclear regulations, and licensing barriers is crucial.
Decision Lab CEO Thue Quist Thomasen notes that after overcoming challenges, Vietnam is showing signs of recovery, with strong growth in retail and tourism sectors, contributing to economic development. Additionally, FDI growth brings optimism, reinforcing Vietnam's position as a global business hub.
Although the BCI still indicates some negative aspects, the positive aspect is the continuous stability recorded in the quarterly measurement. After a period of three tumultuous years, this newfound stability shows that European business leaders in Vietnam can now better predict and plan for the coming year and future investments.