Red tape affects European investment in Vietnam: Eurocham

The European Chamber of Commerce in Vietnam (EuroCham) found 68% of European companies it surveyed calling on authorities to address administrative difficulties foreign firms face.

Some 53% expect better infrastructure development and 39% want better worker skills, according to the EuroCham Business Climate Index survey for the third quarter.

Almost six out of ten companies (59%) want to increase their investment in Vietnam in the fourth quarter, but only 6% will do so "significantly," the survey, which polled 231 executives, found.

Around a quarter of respondents have relocated their operations from China to Vietnam, and 42% of them want to divert at least a small amount of investment to Vietnam this year.

The EuroCham Business Climate Index declined for a second quarter in a row, possibly reflecting "the instability of a recovering Vietnam economy," the survey said.

EuroCham chairman Alain Cany said: "It is true that we are less optimistic now than we were at the beginning of 2022 due to external factors slowing global growth. The fourth quarter will also likely be less positive than the second or third quarters of the year."

But he added that Vietnam would certainly be in a better position in two or three years, demonstrating its status as one of the most exciting and dynamic business and investment destinations.