VietNamNet Bridge – The Vietnam Report Company on August 13
released the Policy Debate No. 2, a regular research survey, which shows that
Vietnamese businessmen still keep pessimistic about the economy performance in
2013.
The main points of the reports
The moment for the Vietnam’s
economy recovery remains indefinite. The majority of businesses keep optimistic
about the business performance, while 46 percent of them believe the national
economy would not be able to recover by 2013.
However, 44 percent of polled
businesses said in favorable conditions, the national economy may begin
recovering from the second half of 2013.
The number of businesses
believing that the macroeconomic situation would be improved in the second half
of 2012 was by far lower than the number of businesses believing that the
situation would get worse.
However, most of the businesses
have said they need to make tenacious efforts to survive and get ready to
overcome the difficulties to come.
In the immediate time, businesses
all anticipated that their business performance would be worse in the second
half of 2012. The number of businesses predicting that their labor force and
turnover would increase is much lower than the number of businesses
anticipating the sharp falls in turnover.
Business restructuring has been
recognized by 90 percent of businessmen as an inevitable tendency. Meanwhile,
37.74 percent of businessmen have said that they really want to restructure
their business, but they do not have the labor force good enough for the work.
Besides, the unpredictable economic changes also make businesses more cautious
when making reshuffle decisions.
Regarding the big problems
businesses are facing, the survey has found out that the credit flow to
businesses has got stuck, leaving businesses in the capital thirst. The
majority of businesses say banks only provide loans to big and profitable
businesses (38 percent), or loyal clients (31 percent).
Businessmen think that commercial
banks really want to support businesses, but many banks are facing difficulties
themselves, thus unable to assist businesses.
Only a few businesses have
criticized banks for ignoring businesses’ difficulties and refusing to share
difficulties with businesses.
What will be the national economy in 2013 like?
Businessmen still disagree when
discussing the main targets Vietnam should strive to in the second half of 2012
and early 2013.
There are two different
viewpoints about what Vietnam should do in the time to come, either to focus on
rescuing the enterprises in difficulties, or gather strength to restructure the
national economy.
Some businesses have urged to
take necessary measures to rescue businesses, because if businesses collapse,
the national economy would also be shaken. The businessmen believe that tax
reduction, debt payment extension, low cost credit and the policies to
encourage the real estate market need to be applied comprehensively to save
enterprises.
Meanwhile, big enterprises
believe that it’s the right time for the government to gather strength on the
economy restructuring instead of spending money and time to rescue weak
businesses.
They believe that it would be
better to let unprofitable businesses, including state owned enterprises, go
bankrupted, calling this the “creative devastation.”
Once the weak businesses are
eliminated from the national economy, only strong and capable businesses would
be able to exist and develop. After the devastation, new businesses would
arise, while more new jobs would be created.
If the state continues pumping
more capital to rescue the businesses, it would help prevent the collapse of
the businesses. However, they would be weak businesses forever which live on
the support from the state.
Vietnam Report
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment