Vietnam - Business leaders less positive in 2012

Two-thirds of business leaders believe business conditions in Vietnam have deteriorated, according to The Nielsen Vietnam.

The online survey The Nielsen Business Barometer survey last week released stated that over 30 per cent of firms believed their situation would deteriorate, while 36 per cent expected conditions to remain the same in the next 6-12 months.

Of which, global economic crisis was in the top five concerns. The lingering instability in Europe, North America and the growth challenges facing Vietnam brought back a cautious outlook among business leaders and consumers.

Inflation is still a burning concern of businesses with over 59 per cent business leaders.

Competitive pressures, the dong devaluation and wages growth are also listed in top concerns of business leaders with 41, 41 and 24 per cent, respectively. The latest round of the Business Barometer survey also reveals that companies achieved their business targets for 2011, but did not perform better relative to 2010.

“Leaders will continue to invest in advertising and expanding businesses in 2012, but will do so with even more caution than in past years,” stated the report. Business leaders expect Vietnamese consumers to continue to purchase with promotions, but also cut back on ‘non-essential’ items as well.

Leaders recognised that consumers were becoming more discriminate and have an allotment of choices. Therefore, price increases must be carefully planned. Furthermore, more than half of those surveyed said they would look at improving productivity as a solution to inflation.

As highlighted in the Nielsen Vietnam Business Barometer survey, leaders will need to carefully look at the cost and pricing strategy, maximise growth opportunities unique to Vietnam and continually engage with the ever-changing Vietnamese consumer.

Minh Thien | vir.com.vn

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