European firms optimistic about Vietnam’s business climate
Leaders of European businesses have started 2021 with optimism about the trade and investment environment in Vietnam, according the Business Climate Index (BCI) for the first quarter of 2021 released by the European Chamber of Commerce (EuroCham) on April 30.
A foreign-invested garment factory in Vietnam (Photo: VNA)
HCM City (VNA) – Leaders of European businesseshave started 2021 with optimism about the trade and investment environment inVietnam, according the Business Climate Index (BCI) for the first quarter of 2021released by the European Chamber of Commerce (EuroCham) on April 30.
The index reached 73.9 points in Q1, the highestscore recorded since Q3 of 2019, before the COVID-19 pandemic impacted theglobal trade and investment system.
The BCI survey also showed the sustained optimism about thebusiness climate, up 47 points over the last 12 months.
When asked about Vietnam’s business climate outlook for Q2this year, 67 percent of the European enterprises considered it “excellent”or good“, rising 12 percent from Q1.
The respondents were also more optimistic about theirbusinesses’ performance in Vietnam this year. More than two-thirds of them,equivalent to about 68 percent, expected their orders and revenue will maintainthe same level or increase in the next three months, up 25 percent from Q4 of2020.
EuroCham members noted that improvements thanks to theEU-Vietnam Free Trade Agreement (EVFTA), which took effect on August 1 lastyear, has created favourable conditions for enterprises.
However, business leaders also expressed their concern aboutcertain barriers like administrative procedures that will continue hampering theirfirms’ activities in the time ahead.
According to EuroCham Chairman Alain Cany, this time’s BCIindicates that Vietnam is continuing to open its economy though many countries arestill hit hard by the COVID-19 pandemic. Vietnam is capable of ensuring businesses’ normal operationswithout many disruptions, which is helping fuel economic growth and Europeanbusiness leaders’ confidence.
The BCI rebounding to the pre-pandemic levels evidences aconsiderable achievement and that Vietnam is moving in the right direction to achievethe twin targets of combating COVID-19 and promoting economic growth, he said.
The BCI is a regular barometer of the business sentiment amongEuropean companies operating in Vietnam. Eachquarter, it tracks the performance of EuroCham’s member companies and theirperceptions of the economic outlook in Vietnam./.
Effectively exploiting the Polish market is one of the ways to help Vietnamese goods make inroads into the EU market, experts told a workshop held by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) on January 28 on the prospects for Vietnam’s exports to the EU through the Polish gateway.
Vietnam has become the fifth nation in the world authorised by the European Union (EU) to export insect-based food to the demanding market, according to the Ministry of Industry and Trade’s Agency of Foreign Trade.
The German state of Bremen can serve as an important gateway for Vietnamese businesses to penetrate into the German market and the EU in general, a workshop in Ho Chi Minh City on March 31 heard.
Almost 5 billion USD worth of Vietnamese goods exported to the EU has benefited from preferential tariffs under the EU-Vietnam Free Trade Agreement (EVFTA), according to the Ministry of Industry and Trade (MoIT).
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.
The Prime Minister emphasised the significance of maintaining macroeconomic stability, controlling inflation, promoting growth, and improving the harmony between monetary and fiscal policies.
Petrovietnam will step up the development of new products and the expansion of international markets to reduce reliance on the domestic market. It also plans to optimise capital use, manage cash flow and costs, streamline operations, and enhance workforce quality to achieve its 2025 goals.
Vietnam has so far attracted 43,346 valid FDI projects with a total registered capital of 517.14 billion USD. The accumulated disbursed capital is estimated at nearly 331.46 billion USD, accounting for 64.6% of the total registered capital.
More than a product showcase, Vietfood & Beverage – Propack Vietnam 2025 is designed as a comprehensive ecosystem where businesses, experts, and consumers can share knowledge, explore technologies, and connect for collaboration.
Both sides expressed their hope that the outcomes of the discussion will continue to improve the efficiency of customs clearance activities at the customs clearance points and dedicated transport routes of the Huu Nghi – Youyi Guan international border gate pair.
The maximum retail price of E5 RON92 petrol has increased by 207 VND to 19,608 VND (0.75 USD) per litre while that of RON95-III rose by 234 VND to 20,074 VND per litre.
A foreign-invested garment factory in Vietnam (Photo: VNA) 
