European business community welcome Vietnamese government's actions during the Covid-19 pandemic

While Covid-19 has had a significant negative impact on European business in Vietnam, many European companies have welcomed the Vietnamese government’s actions and measures to keep the economy afloat, according to the latest Business Climate Index (BCI) from the European Chamber of Commerce (EuroCham).

The BCI is a regular barometer of how European business leaders see the trade and investment environment in Vietnam and the prospects of their own enterprises. Each quarter, the chamber asks its members to answer a range of questions covering issues such as their investment plans, revenue projections, and workforce levels.

The impact of the Covid-19 epidemic on European businesses in Vietnam

The Covid-19 epidemic is affecting trade and investment around the world, and European businesses in Vietnam are no exception. Over 90% of business leaders said that Covid-19 has had a negative impact on their enterprises.

Despite the negative financial impact of COVID-19, European companies are taking important measures to protect both the health and the livelihoods of their workforce. Four out of five business leaders are confident that they will be able to retain at least 70% of their staff over the next quarter. Meanwhile, 80% of businesses have asked their staff to work from home to prevent the spread of the virus.

The European business community welcomes the actions of the Vietnamese Government to support businesses in the Covid-19 epidemic

EuroCham members also welcomed government measures introduced in Directive 11 on urgent tasks and solutions to remove difficulties for businesses and workers to support businesses during the pandemic.

A deferral of tax and land rent was the most popular provision, with a suspension of social insurance contributions coming a close second. The chamber also asked European business leaders what other measures would be most helpful for their enterprises, and around three-quarters said a deferral of other taxes such as corporate income tax (CIT), personal income tax (PIT), value added tax (VAT), and special consumption tax (SCT) would be the most welcome support for their companies.

Commenting on the BCI, EuroCham chairman Nicolas Audier said, “This data shows that COVID-19 is having a deep and serious impact on European business in Vietnam. However, it is important to remember that this is a global pandemic, and enterprises around the world are suffering from the impacts of this crisis.

There is also no doubt that, without the swift and decisive actions of the government, the situation here could have been much worse. The EuroCham is committed to Vietnam’s long-term economic growth and their members remain available to share their insights and recommendations to help minimise the disruption of Covid-19 on business operations.

According to Eurocham (https://www.eurochamvn.org/node/18304)