European firms more positive about Vietnam’s business climate
European businesses are more positive about Vietnam’s trade and investment environment in the first few months after COVID-19, the Business Climate Index (BCI) unveiled by the European Chamber of Commerce in Vietnam (EuroCham) on July 22 showed.
HCM City (VNA) – European businesses are morepositive about Vietnam’s trade and investment environment in the first fewmonths after COVID-19, the Business Climate Index (BCI) unveiled by theEuropean Chamber of Commerce in Vietnam (EuroCham) on July 22 showed.
Accordingly, during the COVID-19 pandemic, whensocial distancing and travel restrictions brought normal business operations toa halt, the EuroCham BCI fell to its lowest-ever score of 27 percent in thefirst quarter of 2020.
However, after the Government implemented aworld-leading public-health and economic response, Vietnam was able to returnto business-as-usual much sooner than other countries, who continue to strugglewith the impact of the virus.
As a result, the positive sentiment of Europeanbusiness leaders began to bounce back, recording a 7 percent jump betweenFebruary and April to reach 34 percent.
The BCI also found that more than 25 percent ofEuropean enterprises had benefitted from the Government’s postponement of tax,while around one-in-five had benefitted from a reduction in rent and asuspension of social insurance contributions.
Despite these positive signs, however,challenges remain for European enterprises, according to the survey.
A large proportion, 88 percent of theinterviewed businesses, felt negative effects as a result of the pandemic inthe three months to April. Meanwhile, more than 50 percent said that areduction in taxes such as corporate income tax, personal income tax and valueadded tax would help them emerge stronger from the crisis.
Chairman of EuroCham Nicolas Audier said: “Thisdata is further evidence that Vietnam is one of the international successstories of the COVID-19 pandemic. It also shows that the Government’s effectiveand sure-footed handling has had a tangible impact on the confidence ofEuropean business leaders.”
The next challenge will be adapting to the “newnormal” where COVID-19 is present in other countries but where global traderemains essential to domestic economic growth. This will require imaginativesolutions to address issues such as the return of foreign experts on whom manyinternational companies depend, he added./.
Vietnamese exporters have been advised to make preparations so as to stay ready for orders from Europe when the EU-Vietnam Free Trade Agreement (EVFTA) takes effect and the COVID-19 pandemic is stamped out.
The European Union – Vietnam Free Trade Agreement (EVFTA), recently ratified by the Vietnamese legislature, will not only help Vietnam boost production and exports but also enable European firms to increase their presence in this emerging Asian nation, said the German media.
An online conference on business and investment opportunities for Belgian firms in Vietnam was jointly held by the Belgium – Vietnam Alliance (BVA) and the Belgian- Luxembourg Chamber of Commerce (Beluxcham) in Vietnam on July 13 in Brussels.
The Vietnam Trade Promotion Agency (Vietrade) is able to coordinate with and create the necessary conditions for Vietnamese and Dutch companies to enhance business links, Vietrade Deputy Director Le Hoang Tai has said.
The European Commission (EC) on July 15 announced quotas for several Vietnamese agricultural products and rice in line with the European Union – Vietnam Free Trade Agreement (EVFTA).
Party General Secretary To Lam’s upcoming state visit to the Republic of Korea (RoK) is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.
In the context of the growing global digital economy, digital transformation and the promotion of e-commerce are key drivers helping Vietnam boost integration, enhance competitiveness, and expand export markets, according to the Vietnam E-commerce and Digital Economy Agency
Tilapia is considered highly competitive in export markets thanks to its affordability, ease of processing, and appeal across both high-end and mass-market segments.
In the first seven months of the year, Phu Tho attracted an impressive 651.7 million USD in foreign direct investment, including 35 newly licensed projects totaling 119 million USD in registered capital and 45 existing projects with an additional capital of 533 million USD.
Under the agreements, VinEnergo will invest in, install, and operate 43 MWp of rooftop solar power capacity and 45 MWh of BESS capacity across the three plants.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Experts agree that a combination of technology, enforcement, education and cross-border cooperation is essential to protect copyrighted content in Vietnam’s growing digital ecosystem.
Poland is Vietnam’s largest export market in Central and Eastern Europe, with key staples including seafood, textiles, footwear, coffee, and cashew nuts.
Cashless payments are growing at an impressive rate, averaging 30–40% annually. Vietnam’s per capita cashless transaction volume now trails only China, with total value of 295.2 quadrillion VND (11.26 trillion USD), or 26 times of its GDP.
A draft resolution on piloting a digital asset and cryptocurrency market is being developed, aiming to create a broad-enough regulatory sandbox that enables investor participation and provides practical grounds for policy refinement in areas such as risk management and anti-money laundering.
Viettel was ranked third for overall mobile performance with a score of 82.56 just behind UEA’s e& (88.05) and Quatar’s Ooredoo (87.05) and ahead of Singapore’s Singtel (82.53). Vinaphone took second in 5G speed with a score of 78.11, trailing only behind e&.
PM Chinh proposed MUFG work closely with the Ministry of Finance to improve legal frameworks and support the establishment and operation of the international financial centre in Da Nang and Ho Chi Minh City.
Chairman of EuroCham Nicolas Audier (Photo: VNA) 
