The European Chamber of Commerce in Vietnam (EuroCham) said that the Vietnamese government needs to go “faster” and “far” further in restoring tourism activities to avoid falling behind and slowing economic growth in the “new normal” period.
Alain Cany, President of EuroCham was quoted by Vietnam’s state-controlled media on January 28 as saying: “We encourage the government to go further and faster in reopening, at least in areas with high rates of vaccination, so that Vietnam can reach its greatest potential in recovering its economy and attracting more foreign investments in 2022.”
The head of the European Business Association in Vietnam said that nearly 90% of the association’s members think that Vietnam’s previous blockade measures to prevent the epidemic had affected their business activities. He said member businesses welcome the return to normal life and business activities, especially the relaxation of entry requirements for vaccinated foreigners to live and work in Vietnam.
However, according to Mr. Alain Cany, although Vietnam has been able to control the epidemic and life is returning to normal, some industries are still at risk of “lagging behind” in the recovery race after the pandemic in which tourism – one of Vietnam’s spearhead economic sectors and creating millions of jobs – is still restricted to guided tours and this is slowing the growth of the economy.
In the Business Climate Index (BCI) report for the fourth quarter of 2021 published by EuroCham, the Business Climate Index (BCI), a quarterly sentiment gauge of European businesses in Vietnam, has peaked after the fourth Covid-19 wave last year, to 61 percent points, up 42 points from the third quarter. Although this index is still lower than before the pandemic, it shows that business confidence is returning.
Still according to the above report, more than half (58%) of European businesses predict that Vietnam will have economic stability and growth in the first quarter of 2022, up 8 points compared to the previous period;
43% said they plan to increase investment in the first quarter of 2022. At the same time, more than a third (38.5%) of businesses plan to increase staff by about 15% over the previous period. More than half (51.5%) of survey respondents anticipate an increase in orders and revenue.
Vietnamese authorities are considering a gradual resumption of international tourism activities after two years of restrictions due to the pandemic.
Minister of Culture, Sports, and Tourism Nguyen Van Hung earlier this week said that Vietnam’s current high vaccination rate is an advantage to revive tourism. However, there are still some major barriers such as the inconsistency in Covid-19 prevention regulations between localities and the weakening state of many businesses after a prolonged period of social distancing.
The Vietnam National Administration of Tourism, under the Ministry of Culture, Sports and Tourism, has proposed a time to fully reopen to international tourists starting from May 1.
Thoibao.de (Translated)
