Vietnam - Business confidence index drops

Vietnam's business confidence index (BCI) has decreased sharply from 123 points in the third quarter of 2011 to 116 points at present.

This is the result of a survey conducted by WVB Financial Intelligence Services (WVB Vietnam) from December 15, 2011 to January 16, 2012 at 158 businesses operating in 11 major industries and leading the country in terms of property, total revenue and number of staff.

Nearly 33 percent of respondents predict no major changes in the national economy in 2012. Around 7.6 percent believe that the national economy will get worse and up to 95.6 percent are pessimistic about inflation which will remain at a double-digit rate.

Therefore, nearly 30 percent of the businesses will not recruit more employees while 7 percent of the businesses say they will cut staff this year.

Nearly 44 percent of respondents say they do not expect revenue growth in 2012, while 12 percent are worried about a decrease in revenues. However, 65.2 percent of the surveyed businesses still foresee profit growth.

Around 28.5 percent think their profit will remain unchanged whereas 6.3 percent of them are worried about decreased profit.

In the survey, 74.5 percent of the businesses say that they continue to face difficulties in accessing capital for business and production activities.

Accordingly, 26.7 percent choose to borrow money from banks, 28.2 percent to seek business partners, 14.4 percent to borrow trade credit, 13.4 percent to conduct finance leasing business, 10.9 percent to issue shares and 6.4 percent of issue bonds.

VOV

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