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Submitted by unname1 on Tue, 07/26/2011 - 11:52
European firms appear cautious when they are asked about their plans for investment in Vietnam this year although 52 percent of businesses like to increase their investment.

The latest survey conducted by European Chamber of Commerce in Vietnam (Eurocham) released on July 25 said that most companies (32 percent) wanted to maintain their level of investment and 31 percent are looking to increase their investments in Vietnam by a little bit.

However, European firms’ business confidence has dropped 7 points further to 63, which shows a growing trend of caution about investing in Vietnam.

Compared to previous surveys, there was a 10 percent drop in respondents assessing their current business situation as ‘good’ or ‘excellent’ to 46 percent down from 56 percent before and 64 percent in the first quarter of 2011. The number of businesses having a negative view of their current situation rose slightly from 12 to 16 percent points.

Despite this fact, businesses gave quite positive answers on their expected number of orders and revenues on the medium term.

Fifty-four percent expected an increase in revenue in the medium term. This is an increase of more than 10 percent from 43 percent in the last quarter. Fever companies (42percent) expected their number of orders to remain constant or decline than last quarter where this view was shared by more than half (56percent). In line with this were the respondents’ recruitment plans. 51 percent of respondents expected to hire more staff in the medium-term. 34 percent expected to maintain the same level and only 9 percent where looking to reduce their staff in Vietnam.

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