Confidence amongst European businesses in Vietnam has continued torise, according to a Business Climate Index (BCI) survey conducted bythe European Chamber of Commerce in Vietnam (EuroCham) for the thirdquarter of this year.

The report, released onOctober 23, showed that the BCI index climbed to 74 points from 66points in the second quarter, reaching the same level as in the thirdquarter of 2011.

The growth in confidence reflectedthe high expectations of businesses for the negotiations of the freetrade agreement between Vietnam and the European Union, which isexpected to be concluded in the near future.

As many as 62 percent of respondents perceived the next quarter’s outlook positively.

In this quarter, high expectations continue, with 61 percent ofrespondents saying the macroeconomic situation in Vietnam wouldstabilise and improve, while 24 percent said the situation would notchange, and 15 percent expected it to deteriorate.

Estimations on the inflation rate for the third quarter are higher, increasing from 4.26 percent to 4.61 percent.

With high expectations for macroeconomic stability and improvement,and general expectations for an improved business outlook, a moderaterise in inflation is a logical outcome, the report says.

EuroCham Executive Director Csaba Bundik said the European businesscommunity was excited and gearing up for the future. The ratificationand implementation of the FTA between the EU and Vietnam would becrucial in assuring that these preparations have not been made in vain ,he commented.-VNA