Business optimism has slumped in Vietnam
despite a general rise in good spirits across the Asia-Pacific region.
Business
optimism in Vietnam plummeted from 34 per cent in 2011’s fourth quarter down to
6 per cent in the first quarter of 2012, according to the latest research from
the Grant Thornton International Business Report (IBR), a quarterly survey of
3,000 businesses in 40 countries.
This
bucked the trend in the Asia-Pacific region where 12 countries saw a move from
–9 per cent to +2 per cent or a growth in optimism of 11 per cent. In Thailand,
following the recovery from the floods, the business optimism level has risen
from –52 per cent to +8 per cent and developing economies in ASEAN are also
more optimistic with an average increase from 61 to 73 per cent.
Ken
Atkinson, managing partner of Grant Thornton Vietnam said lender support, the
cost of finance, a lack of skilled labour, access to finance and red-tape
continued to be the major hurdles to improving confidence in Vietnam. “It is
disappointing to see the trend in Vietnam does not match the positive uplift in
confidence around the world despite a good reduction in the Q1 trade deficit,”
he said.
However,
Atkinson said government policies appeared to be working with a steady decline
in inflation, a reduced trade deficit, and a stable currency. “This together
with the likely decline in interest rates should help re-build the business
confidence in the second quarter and beyond,” he said.
One
month ago, Nielson Vietnam also revealed a survey stating that two-thirds of
business leaders believed business conditions in Vietnam would deteriorate in
the next six to 12 months due to inflation, competitive pressure, dong
devaluation and wages growth.
Minh
Thien | vir.com.vn
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