Oct 13, 2012

Vietnam - Business confidence drops south

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Vietnam’s business confidence has dropped again in 2012’s third quarter after slightly rebounding in the second quarter, according to Vietnam WVB Financial Intelligence Service’s survey.

The business confidence index in this quarter 2012 dropped 13 points to 107 from 120 points in second quarter, Vietnam WVB Financial Intelligence Services (WVB Vietnam) Vietnam WVB Financial Intelligence Services (WVB Vietnam) said yesterday.

This survey was from September 15 to the first week in October and attracted the participation of 110 companies across 10 primary sectors and industries. Half the survey participants were small- and medium-sized enterprises.

When being asked about the current economic conditions, 37.27 per cent of entrepreneurs said that current economy conditions have become weak, 34.55 per cent believed the current economic conditions would stay the same. Only 28.18 per cent of entrepreneurs said that the overall economic conditions have improved compared to one year ago.

Despite the flat economic situation in the third quarter, businesses still believed that the government’s macroeconomic policy will help the Vietnamese economy.

More than half of entrepreneurs were confident their company’s sales revenues will increase over the next 12 months. Meanwhile, only 6.36 per cent of enterprises worried about the decline in revenues in the next 12 months.

To maintain business operations, 47.27 per cent think their company employees will remain the same over the next 12 months 42.73 per cent even think of increasing the total number of employees. Only 10 per cent think they will cut the workforce in their companies.

WVB Vietnam is a subsidiary of US-based World’Vest Base, the world leading provider financial fundamentals serving the research and analytic needs. The company started conducting surveys on business confidence in Vietnam in 2008.

vir.com.vn


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