HCM CITY (VNS)— Two-thirds of businesses in Viet Nam have adopted a stronger focus towards the domestic market since the global financial crisis broke out, a new report says.
The latest Grant Thornton International Business Report (IBR), which surveyed over 11,500 businesses in 40 economies around the world, focuses on the experience of businesses and their expectations for the next 12 months.
In Viet Nam, 200 businesses were surveyed across multiple industries and sectors.
The report found domestic businesses are optimistic about the economy over the next 12 months, although less so than in 2010. Business expectations for revenue remains high, at 91 per cent while the Asia-Pacific business average is much lower at 53 per cent.
Ninety per cent of local businesses expect to increase profits in 2012, well above the Asia Pacific average of 37 per cent.
The cost of finance, around 59 per cent, was cited as the most pressing constraint on expansion by businesses in Viet Nam this year, significantly higher than the Asia-Pacific business average of 31 per cent.
A shortage of orders/reduced demand is also a significant worry for 50 per cent of local businesses as it is across for 47 per cent enterprises in the Asia-Pacific region.
Around 19 per cent of businesses in Viet Nam believe that lenders are unsupportive of their business, far higher than the average across the Asia-Pacific region as a whole, only 4 per cent, the report found.
It predicted that in the 2013-2016 period, a more helpful global environment can see the country hit an average growth rate of 7.3 per cent per annum assuming the government and central bank can get a handle on inflation. Remittances from Vietnamese overseas are expected to remain robust in the medium term, boosting private consumption, the report said. — VNS