Business confidence still fragile

Thien Thanh Sanitaryware joint company



Business confidence still fragile

The business confidence in this year’s first half has improved a little compared to the end of 2013, but the business outlook this year still looks fragile, according to a survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI). The survey conducted by VCCI’s Enterprise Development Institute in late April and early May among 500 domestic businesses shows that the so-called move index in the first six months stays at minus five points compared to minus 21 points a year earlier.

The move index is the difference between the number of optimistic enterprises and the number of those saying the situation will be worse.

Doan Thi Quyen from the institute said at the survey announcement in Hanoi last week that although the result is not completely positive, it reflects better business confidence among domestic firms.

More enterprises expect growth in output in the second half of this year, according to the survey.

In the first five months, 22% of enterprises achieved their revenue target, 28% met more than 90% of their goal, more than 16% reached 70% of target and 34% had revenue under 70% target.

The VCCI report also warns that some macroeconomic factors, especially import-export, forex and financial market, can pile pressure on economic growth in the last six months this year.
Tu Hoang (thesaigontimes.vn)