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| Business confidence index up 6 points in Q3 |
| 16/Oct/2009 Intellasia | 15/Oct/2009 Hanoi Moi |
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| 16 Oct, 2009 - 11:36:19 AM |
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Business confidence index (BCI) in Q3 2009 was up by 6 points compared to Q2 and increased 36 points against last Q3.
This is the result of a survey held by the WVB Vietnam Finance Information Service Co (WVB FISL) and PetroVietnam Finance Investment and Consultancy Joint Stock Co (PVFC Invest) from September 15 to the first week of October 2009.
The survey attracted the participation of 143 enterprises in Vietnam's 11 key industries. Small and medium-sized enterprises (SMEs) accounted for more than half of surveyed firms.
Thus, in comparison with the results of the latest survey held in Q2 2009, this quarter's BCI growth rate increased 6 points, much lower than 31 point rise of previous quarter.
The survey showed 71 percent of surveyed enterprises thought that Vietnam's economy today is better than 12 months ago, 77 percent of businesses believed that within next 12 months, Vietnam's economy will be better, only 4 percent worry about a bleak economic future of the country next year.
Up to 57 percent of businesses expected to increase human resources, 41 percent of businesses expected to retain only 1 percent of firms planned to reduce the number of human resources in the near future; 40 percent of companies planned to keep investment costs for fixed assets and 59 percent of enterprises planned to invest in fixed assets within next 12 months.
Also in this survey, 69 percent of asked enterprises are confident of revenue growth in next 12 months, there is no business worrying about the decline of revenues; 71 percent businesses believed that profit will increase next year, 29 percent of businesses thought that profit will be more or less stagnant. There is no business worrying about the decline of profit in next year.
In the survey, the business survey group of WVB FISL and PVFC Invest also find out the opinions of the enterprises on the hot issues that businesses are most concerned about such as the effectiveness of the first demand stimulus package, the need for the second demand stimulus package, the nature of the economic recovery during past period and the prospects of market in the near future.
Results showed that 54 percent of enterprises thought signs of economic recovery recently showed the domestic economy has come out of recession and is recovering. This is a high rate, showing the sound belief of the enterprises in the recovery of domestic economy.
In the context of most major economies are concerned about the return of inflation in the last months, this is a good sign for the domestic economy.
An assessment by Credit Suisse Bank also said that Vietnam is recovering well. According to Credit Suisse's specialists, the recovery of exports and strong domestic demand sources are motivation to Vietnam's economic growth at 5.3 percent in 2009 and it would be 8.5 percent in 2010.
Kai Nargolwala, Asia Pacific general director of Credit Suisse, said: "the Vietnamese government's most impressive achievement is the stable cash flow and credit, avoids recession and unemployment on a large scale, such as keeping the trust on the international financial ability of Vietnam as well as for domestic enterprises.
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