European businesses upbeat about Vietnam’s green growth prospect

European businesses expressed positive views about Vietnam's prospects for green growth according to the latest Business Climate Index (BCI) released by the European Chamber of Commerce in Vietnam (EuroCham) and YouGov Vietnam.

Nearly 90% of respondents agreed that Vietnam should develop its green sector more to draw in more foreign investment when asked about the relationship between green growth and foreign direct investment (FDI).

The confidence of European business stakeholders in Vietnam's investment environment slightly decreased during the second quarter of 2022.

Following a first-quarter rise, the BCI dropped 4.4 points in the second quarter to 68.8 points. Although the BCI has fallen, it remains 7.6 points higher than in the fourth quarter of 2021 (61.0 points).

The results showed that 76% of respondents expected their company to boost FDI in Vietnam by the end of the third quarter, and 45% of respondents were highly or very pleased with Vietnam's efforts to attract and retain FDI. This may be due to the fact that 55% of respondents said Vietnam has improved its FDI attraction and retention capabilities from the first quarter.

The survey reveals barriers to European investment in Vietnam and trade between the two sides. About 35% of respondents, removing and simply administrative barriers is the best approach to promote FDI; while 24% of respondents pointed to infrastructure development.

Green growth is the way of the future, not just because it will help build a prosperous foundation for Vietnam's economy and people, but also because it will support the country's transformation into one of the world's strongest markets, EuroCham Chairman Alain Cany said.

Prime Minister Pham Minh Chinh’s COP26 commitments and the government’s National Green Growth Strategy show that the government is serious about making the changes necessary for a green transition.

"Therefore, despite the global economic uncertainty, it is an incredibly exciting and promising time to do business in this country",  Alain Cany declared.

EuroCham invites its more than 1,200 members, who virtually represent every sector of the Vietnamese economy, to supply quarterly updates on the business environment in Vietnam and forecasts for their own businesses in order to gain a better understanding of the Vietnamese market.

Source: VGP