Business confidence dips further among EU firms in Vietnam

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Business confidence and outlook among European businesses in Vietnam has continued to fall this quarter, with high inflation remaining a major concern, a new survey found.

The European Chamber of Commerce in Vietnam (EuroCham) said its latest quarterly Business Climate Index dropped seven points further to 63, after losing nine points three months ago.

EuroCham members that participated in the survey continued to be more cautious about their business outlook and somber in assessing their current situation, EuroCham said last week.

The number of businesses having a negative view on their current situation rose slightly from 12 to 16 percent. There was also a 10 percent drop in respondents assessing their current business situation as "good" or "excellent", to 46 percent, much lower than the 72 percent recorded in the first quarter.

EuroCham said surveyed businesses have shown to be more cautious than in previous surveys, with most companies planning to keep their level of investment unchanged.

In terms of expected revenue, European businesses remained quite positive as 54 percent expected an increase in revenue in the medium term.

The survey found 56 percent of companies expect inflation to have a significant impact on their business while 6 percent stated that inflation was actually threatening their business in the country.

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