WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment / News
Covid-19 hurts 90% of European businesses in Vietnam: Survey
Nhat Minh 11:46, 2020/04/08
The EuroCham Business Climate Index plunged to its lowest-ever score in the first quarter of 2020 due to impacts from the Covid-19 pandemic.

The Covid-19 pandemic has exerted negative impacts on many European businesses in Vietnam, with 90% of them saying that they are hit by the virus, according to the latest Business Climate Index (BCI) for the first quarter of 2020 released on April 8 by the European Chamber of Commerce (EuroCham). 

Following similar trends around the world, where the impacts of Covid-19 have hit international trade and investment, the EuroCham BCI plunged to its lowest-ever score of 26% in the first quarter of 2020, down 51 points from a reading of 77% recorded in late 2019. 

This drop in positive sentiment is a direct result of the impact of the Covid-19 pandemic. More than half of the respondents said the pandemic has a "significant" negative impact. Meanwhile, almost 80% said that their business had incurred higher costs from measures taken to protect their workers and prevent the spread of the virus.

 Chart: EuroCham BCI Survey, Quarter 1, 2020

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.

EuroCham members, however, applauded the Vietnamese government's measures to mitigate the impacts. They welcomed government measures introduced in Directive 11 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. 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.

“This data shows that the Covid-19 is having a deep and serious impact on European business in Vietnam. However, 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 [Vietnamese] government, the situation here could have been much worse,” EuroCham Chairman Nicolas Audier said. “For this reason, our members welcome the measures announced so far, which will provide a lifeline to companies and their workers during this difficult time.”

Covid-19 is a fast-moving health crisis, and it is creating unprecedented challenges for businesses of all shapes and sizes and in all sectors and industries. Therefore, further actions could soon be required to help both domestic and foreign enterprises weather this storm and get back to business as usual as soon as possible, Audier added.

RELATED NEWS
TAG: Eurocham BCI report covid-19
Other news
21:55, 2024/10/22
Better links with FDI firms to support Hanoi businesses
Hanoi will continue to focus on quality projects, especially with partners such as Japan, the United States, and Europe to boost technology transfer.
15:24, 2024/09/24
Vietnam calls for more US investment in innovation, hi-tech
The Vietnamese leader called on relevant agencies to resolve any challenges faced by investors and enhance the investment climate to encourage greater US investment in Vietnam.
14:13, 2024/09/23
Vietnamese leader urges Boeing to build production facility in Vietnam
Boeing is committed to continuing to support the development of Vietnam's aviation ecosystem, focusing on aviation infrastructure, human resources training, airport construction, and aircraft maintenance facilities.
14:38, 2024/09/17
Foreign capital pouring into Vietnam's real estate market
Experts are optimistic that the 2024 Land Law, once enacted, will help resolve legal bottlenecks and attract more FDI.
16:27, 2024/08/24
Vietnam news in brief - August 24
Read The Hanoi Times to stay up to date on developments in Vietnam.
20:15, 2024/08/11
Growing number of FDI firms moving to Vietnam
Over the past 20 years, Vietnam has emerged as a significant manufacturing hub, deeply integrated into global supply chains.