Foreign executives cautious over Vietnam investment -EU business body

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HANOI : Foreign managers expect no major changes in investment in Vietnam this quarter, after inflows fell in the first three months of the year, according to a survey published on Tuesday by the European Chamber of Commerce in Vietnam.The quarterly business climate index confirmed that the Southeast Asia

HANOI : Foreign managers expect no major changes in investment in Vietnam this quarter, after inflows fell in the first three months of the year, according to a survey published on Tuesday by the European Chamber of Commerce in Vietnam.

The survey, which focuses on European companies and individuals operating in Vietnam, showed that 58 per cent of the more than 200 surveyed managers did not plan to change their investment plans in Vietnam this quarter. The Netherlands, France, Luxembourg and Germany are the EU's top investors in Vietnam, according to official data, with combined invested capital exceeding $20 billion. This is still a fraction of the investment from countries like South Korea and Japan - although FDI is often is channelled through Singapore and other financial hubs.

Meanwhile, 55 per cent of managers said they did not expect to hire more people this quarter, and 16 per cent forecast job cuts. Roughly one in four remained sanguine about their headcount planning.

 

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