European businesses express concern about Vietnamese inflation, corruption
The European Chamber of Commerce (EuroCham) Business Climate Index survey announced on February 1 showed that 53% of interviewed firms said that high inflation had affected their business activities; 36% said the inflation had partially affected their operations and just 8% said it was a real threat to them.
Around 34% of companies in the survey said that corruption slowed or had led to the suspension of investment in Vietnam, an increase compared to 28% in the survey conducted in the fourth quarter of 2011. Meanwhile, 39% said corruption had slightly affected their investment decisions and 25% admitted that they had suffered no impact.
Up to 65% companies believe that Vietnam will continue face macro-economic difficulties and 35% think that the situation will improve and stabilise.
According to the survey, 38% of European companies plan to increase their investment by 10% in Vietnam in 2012, down from a rate of 67% at the same time last year; 31% want to maintain their scale of operations and 24% intend to reduce their investment.
The survey also indicated that 47% hoped to see a rise in revenues in the medium term, while 22% said that their revenues may fall.
In terms of recruitment plans, 40% revealed that they would employ more staff in Vietnam in the medium term; 39% planned to maintain their current levels of staffing and only 14% intended to reduce the labour scale.
EuroCham Managing Director Dr. Matthias Duehn said the debt crisis in the Euro zone had affected investor decisions in Asia. However many investors remained keen on the Southeast Asian market, including Vietnam. Therefore, he said, Vietnam should sharpen its competitive edge to attract more investors.
