January 16, 2023
EuroCham's Business Climate Index (BCI), the leading indicator of the European business and investment community in Vietnam, was released for the fourth quarter of 2022. Thanks to Decision Lab for conducting this research.
This BCI's key insights include the following:
⭐The perception of Vietnam's business climate by European business stakeholders dropped to 48.0, down 14.2 points from Q3 and 25 points from the Q1
⭐Though Vietnam's economy grew by 5.92% in Q4 year-over-year and 8.02% for the whole year, this data comes amid continued global economic volatility.
⭐Only 27% of respondents expect economic improvement or stabilization in Q1 2023, indicating a growing sense of pessimism. This is a 15-point drop from the last BCI.
⭐In the past quarter, the number of respondents anticipating an economic downturn doubled.
⭐41% of respondents stated their company is shifting operations from China to Vietnam, up from 13% in Q3.
⭐35% of respondents ranked Vietnam among the top five global investment destinations, and 12% stated that Vietnam was their firm's top international investment destination.
Commenting on the BCI, EuroCham Chairman Alain Cany said:
“Things were definitely less positive in the fourth quarter of 2022 than they were earlier in the year. Although the situation is very likely to continue in this direction in 2023, this shouldn't be viewed as a cause for concern. In fact, Vietnam's economic opportunities continue to exceed those of its regional and international peers. This is evident from the fact that so many of EuroCham's members consider Vietnam central to their global investment strategies.”
“It is also encouraging to see that foreign direct investment from Europe and around the world remains high and continues to grow, especially in Vietnam's green industries and manufacturing. It is clear that, with this FDI, Vietnam's strong economic fundamentals, and its commitment to sustainability, the country is still among the top investment destinations in the world."
Read the full report below.
Following the Prime Minister's recent trip to Europe and the successful agreement of the Just Energy Transition Partnership (JETP), EuroCham wishes to spotlight Vietnam-European challenges and opportunities as we work toward green growth and the ratification of the EU-Vietnam Investment Protection Agreement (EVIPA).
Please join this edition of our highly consequential annual event and be at the forefront of our advocacy efforts.
EuroCham would also love to have you as a sponsor for this annual event! By contributing, you will ensure the Whitebook 2023 launch is a success and will put your company name front and center at our premier advocacy event of the year.
Click the button below for more info.
Vietnam Business Forum Scheduled for Feb. 10 and 13
Pictured above: The 2021 Vietnam Business Forum (VBF)
Mark your calendars! This year's Vietnam Business Forum (VBF), which is one of our preeminent advocacy and business-to-government dialogue events for the year, is just around the corner. Here are the details:
🌏Location: Hanoi, venue TBD
For EuroCham, this VBF is of particular significance because it is being co-chaired by EuroCham Board Member Soren Roed Pedersen as well as Vietnam Chamber of Commerce and Industry (VCCI) President Pham Tan Cong. 2023 also marks the VBF's 25th anniversary.
By serving as a is an ongoing policy dialogue between government and business leaders, the VBF has become a key advocacy platform for shaping business and investment reforms that contribute to improving Vietnam's economic landscape.
Stay tuned for more details.
EuroCham's Annual General Meeting (AGM) Planned for March 16
Our 2023 Annual General Meeting (AGM) will happen on March 16! Mark your calendars.
The event will take place in-person simultaneously in Hanoi and Ho Chi Minh City.
Note: Only members who have paid their membership dues in full for 2023 will have voting rights and can stand for election.
We will keep you updated with more details as they become available.
EuroCham and Deloitte Organized a Luncheon on Expatriate Personal Income and Business Taxes in Vietnam
On Jan. 11, EuroCham Vietnam and Deloitte Vietnam organized a business luncheon titled "A Comprehensive Briefing on Year-end Expatriate Personal Income Tax & Business Tax in Vietnam" at New World Hotel Saigon. Over 30 participants attended, including members and non-members.
The following experts in their fields shared their expertise and views on the overall economic scene of Vietnam, its tax environment, a few noteworthy points in personal income tax, and the challenges in Vietnam's immigration process as well as Vietnam's overall economic environment:
⭐Ngoc Nguyen, Tax Director of Deloitte Vietnam,
⭐Thang Tran, Tax Director of Deloitte Vietnam
⭐Thuy Le, Senior Immigration Manager of Deloitte Vietnam
After the discussion, a wrap-up Q&A session was held in which the speakers and attendees discussed work permits and work visas for foreign nationals.
Current EuroCham members, the time has come to renew your EuroCham membership! The deadline for payment is January 31, 2023.
Renewal of your membership will ensure you remain part of our strong community, benefit from all our services, and bolster your brand image in Vietnam. With your support, we'll surely be able to deliver even greater value to our members in 2023.
EuroCham Direct members should have already received an email with an invoice and payment instructions from the EuroCham Membership Team. Please check your inbox for this email.
Members through our nine affiliated business associations have been also contacted by their respective BA to renew their membership.
Contact our Membership Team if you have any questions:
New EuroCham Website Will Launch in Early February
We will launch our new website at the beginning of February. Keep an eye out for further info about the launch, as well as tips on how to most effectively use our revamped site!
EuroCham's Digital Sector Committee Released its First Newsletter of 2023
Let's take one last look at 2022 before fully jumping into 2023 with the Digital Sector Committee. Check out their Jan. 2023 newsletter to find out what they accomplished in 2022, including:
⭐10+ New articles
⭐17+ Conferences, Dialogues, Seminars and Webinars
⭐Commenting on the Decree 53/2022/NĐ-CP and Law on Cybersecurity
... and much more!
Jan. 14 - "The share of European companies that have relocated some of their operations from China to Vietnam rose to 41 per cent in the last quarter of 2022, up from 13 per cent in the third quarter, the European Chamber of Commerce in Vietnam said ... Alain Cany, the chairman of the European Chamber of Commerce in Vietnam, said that European investors in China clearly sought more stable business and investment conditions in the fourth quarter of 2022."
Jan. 12 - "In the latest survey by the European Chamber of Commerce in Vietnam (EuroCham), 41 per cent of respondents stated their company was shifting operations from China to Vietnam, up from 13 per cent in the third quarter."
Jan. 12 - "... Torben Minko, CEO of B. Braun Vietnam – a subsidiary of B. Braun Group of Germany, [and EuroCham vice-chairman, said] that Vietnam's development leads to the firm’s development which is hiring a total of 1,600 employees ... According to Minko, Vietnam has opened its door, therefore more and more Western corporations are looking to the Southeast Asian nation compared to just a handful of European companies in the past."
Jan. 11 - [Reuters] Exclusive: Apple supplier BOE plans new factories in Vietnam - "Chinese display maker BOE Technology Group Co Ltd (000725.SZ), a supplier of both Apple Inc (AAPL.O) and Samsung Electronics Co Ltd (005930.KS), plans to invest a substantial sum to build two factories in Vietnam, two people familiar with the matter said. The investment may total up to $400 million, one of them said."
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