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Global crisis hits business confidence in VN

Update: February, 04/2012 - 09:10

HA NOI— Viet Nam's Business Confidence Index (CBI) fell from 123 to 116 points between the third quarter of 2011 and January 2012 due to global economic turmoil.

Predicting Viet Nam's economic outlook for 2012, 33 per cent of the surveyed enterprises believed that the country's economic situation would remain almost identical to that of the previous year, while 7.6 per cent of the respondents said the situation would worsen.

About 160 local enterprises in 11 key sectors were surveyed by WVB Viet Nam Financial Intelligence Service Company Limited (WVB FISL) between mid-December 2011 and mid-January 2012. The surveyed enterprises are leading small – and medium-sized enterprises in terms of prestige, turnovers, assets and employees.

Especially, 95.6 per cent of respondents believed that the inflation rate would remain in the two-digit range. As a result, nearly 30 per cent said they would not hire new workers and 7 per cent said they would cut down their workforce this year.

Regarding revenue growth, nearly 44 per cent of respondents said there would be no revenue growth this year while 12 per cent of companies interviewed worried that their revenue would be decreased.

A majority of 65.2 per cent was optimistic about increased profits while 28.5 per cent of enterprises believed their profits would be the same as in 2011. Only 6.3 per cent worried their profits would fall this year.

Finally, 74.5 per cent of the surveyed enterprises said getting access to loans for production would be a challenge, and 26.7 per cent said they would approach bank credits, while 28.2 per cent would seek business partners to establish joint-ventures. Only 14.4 per cent would work for commercial credits, 13.4 per cent would look for financial lease contracts, 10.9 per cent would turn to issue stocks and 6.4 per cent would choose to issue bonds. — VNS

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