EuroCham: Vietnam's business environment index is the lowest in 10 years

Sep 14, 2021

The report of the European Chamber of Commerce in Vietnam (EuroCham) has just been released showing that the Business Environment Index (BCI) is at the lowest level in 10 years, reaching 15.2 points.

Notably, 76% of EuroCham members have bad business results in 3 months (6-8). Among them, 29% of enterprises reported very bad business results.

There are two main reasons leading to this situation, which are limited transport and supply activities, market conditions, in addition to sales restrictions and inconsistency in operating policies among localities.

Due to the prolonged blockade and social distancing, 18% of enterprises in the manufacturing industry have partially shifted their production needs and orders to other countries. 16% of enterprises also consider shifting production.

EuroCham's report also shows that 51% of businesses believe that there are currently no specific instructions from regulators and authorities on what businesses need to do in case F0 appears at the factory. 68% of businesses think that there should be a centralized rule of the Government for business activities instead of letting the local decide.

Accordingly, EuroCham members forecast that business results in the last 3 months of the year will be better, but in general, it is still not good.

Facing the above situation, Prime Minister Pham Minh Chinh had a working session with ministries, branches and diplomatic missions of the European Union to discuss existing challenges in business activities of EuroCham members. , due to the prolonged Covid-19 epidemic.

At the meeting, EuroCham President Alain Cany said: “This fourth outbreak is having a serious impact on business activities in Vietnam. EuroCham's Doing Business Index is currently recording its lowest results in more than a decade. If lockdowns, social distancing and travel restrictions continue for much longer, new investments may be at risk and companies may consider relocating elsewhere in the region. area”.

In addition, EuroCham President Alain Cany and European business leaders also emphasized the need to accelerate the deployment of large-scale vaccination in Vietnam, ensuring the free flow of goods and movement. more convenient for workers.

EuroCham members also believe that it is necessary to shorten the time for business owners, investors and experts who have been vaccinated to return to Vietnam to work, ensuring factories and companies can operate again. as soon as possible and live with the virus to maintain economic growth and protect livelihoods.

Source: NDH

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