The EU Investment View

'Cautious optimism' prevails

Good morning! Welcome to the latest edition of the Vietnam Weekly, written by Ho Chi Minh City-based reporter Mike Tatarski.

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There won’t be a regular newsletter on Friday since I’ll be traveling, but I will send out a roundup of coverage on the passing of General Secretary Nguyễn Phú Trọng. A two-day state funeral will be held on Thursday and Friday.

Don’t forget to check out the latest Vietnam Weekly Podcast episode, which featured Eddie Thai discussing tech funding. Available wherever podcasts are found.

On to the news.

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The European Chamber of Commerce in Vietnam, or EuroCham, recently released its quarterly Business Confidence Index (BCI) with the headline ‘Cautious optimism, but administrative bottlenecks remain a stumbling block.’

This survey acts as “a regular barometer of the business sentiment among European companies operating in Vietnam” and “ is seen by decision-makers, media, and business professionals…as a key indicator of economic activity in the country.”

While the European Union may not have the investment firepower of China or South Korea - European FDI reached EUR13.8 billion in 2022 - it’s a significant player and EU companies are involved in key sectors including energy, manufacturing, and agriculture.

It just so happens that Josep Borrell, the EU’s foreign policy chief, will visit Hanoi next week to discuss cooperation on security and sustainable development, among other issues.

EuroCham Vietnam has over 1,400 member companies, including household names like Adidas, Airbus, Bayer, DHL, and Heineken.

The BCI, therefore, is a good gauge of what major multinational corporations are thinking, especially from a Western perspective. (I’d love to see a similar index for Chinese companies.)

Let’s get into the numbers.