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» The Business Confidence Index reduced 2 index points in the Third Quarter of 2013

15th October 2013 ,Vietnam World Vest Base Financial Intelligence Services Company Limited (WVB FISL)announcedthe result of the survey about WVB Business Confidence Index in the third quarter of 2013.
WVB FISH Ltd. conducts the survey quarterly. Main objects of the survey are companies which have the most well- known brand, the largest number of Total Assets, Total Revenues and employess. Being performed from the end of September 2013 to the middle of October 2013, the survey attracted 122 Companies of 11 key industrial sectors in VietNam. More than half of that businesses represented for small and medium enterprise sector.
According to the survey, the Business Confidence Index (BCI) in the third quarter experienced a slight variantion comparing to previous quarters of 2013. This could be seen as a good sign that the Government's efforts in the first nine months of 2013 maintaining the stability of the macro economy has brought positive results, contributing to stablize market’s confidence.
Summary of investigation results of 6 components building Business Confidence Index (BCI) in the third quarter of 2013 as follow:

• On the general economic situation of Vietnam today: More than 50% of businesses surveyed claimed that the general economy of Vietnam is now better than 12 months ago, 35 % said that economic conditions in Vietnam remain and only 15% assumed that economic conditions are somewhat less than 12 months ago.
• Prediction of Vietnam’s general economic situation in the next 12 months: In the survey, Therewere 63% of enterprises believed that the Vietnam’s economy will be better in the next 12 months. Only 2% was worried about the future of Vietnam's economy in 2013.

50% of surveyed businesses claimed that the current overall economy of Vietnam is now much better than the previous 12 months, and up to even 63% of enterprises believedthat the economy will be better in the future. This shows that despite the current economy is still difficult, but the positive results achieved from the administration of monetary policies of the National Bank as well as effective achievement from the implementation of solutions to remove difficulties for the economy  of Government such as interest rates reduction, enterprise  income tax decrease…has helped businesss regain confidence and trust in the possibility of developing the economy in the future.

• Plans to use employees : In the survey, 57% of firms expected to remain the workforce in the future, 36% of enterprises planned to raise the human resource and 7% of businesses had plans to cut the the number of employess next time.
• Investment plans for  fixed assets: 56% of businesses surveyed planned to keep investment costs for fixed assets, 38% of enterprises expected to invest more and 6% of enterprises intent to invest in cost reduction of fixed assets in the next 12 months.

Although interest rates have fallen, but the access to loans remains difficult due to lack of collaterals; besides, hard to find output for products and concerns about the risk of potential re - inflation of the economy makes the majority of businesses which still have shy mentality don’t intend to expand the production. That explains why there are more than 50% of respondent businesses do not have a plan to increase employees and to invest in fixed assets to expand the production in the future, even to 7% of companies continued the implementation of personnel cuts and 6% have plans to reduce investment on fixed assets to minimize production costs, to restructure operations apparatus.

• The belief in revenue growth: 54% of enterprises surveyed were confident that sales will increase higher than the second quarter of 2013, 39% of businesses said that its revenue will remain and only 7% of companies concerned about their sales figures in the next 12 months.
• The belief in profit growth: 55% of enterprises believed that profits will rise in the coming years. 38% of businesses will remain profitable and 7% of firms are concerned about declining profits in the next 12 months.

Nearly 50% of enterprises surveyed expressed pessimistic about the possibility of the growth of revenue and profitability of the business in the future because  domestic consumption demand are still weak, credit flows are not well absorbed and corporates still rely on the effectiveness of macroeconomic stabilizationpolicies which is conducting by the Goverment.
The WVB FISL team of surveyors also refer to opinions of enterprises about the impact of rising electricity price, increasing the minimum wage on the operations of the business. More than 60% of enterprises surveyed have said that such policies will cause many difficulties for enterprises. Because production and business activities of enterprises are still facing many difficulties, rising price of electricity and increasing the minimum wage will expand the operating costs, followed by a more difficult situation.
Besides The WVB FISL team of surveyors also consult enterprises’s solutions to solve problems for the retail businesses in the future, including diversification of commodities, focusing on origin of products (46%), reinforcing the forms of link between retail businesses (44%), besides, firms also need to train as well as improve the quality of human resources, to intensify modern facilities, to focus on the application of e-Commerce in business, ... to increase customer utilities.
The Business Confidence Index (BCI) in the third quarter of 2013 was 116, going down slightly from the second quarter of 2013 (118 points), showing that businesses still expected the efficiency from the support packages to macroeconomic stabilizaton of the Government.

Detail results of the survey:
WVB-PVFC Invest Business Confidence Index (BCI) QIII/2013:              116
WVB-PVFC Invest Business Confidence Index (BCI) QII/2013:                118
WVB-PVFC Invest Business Confidence Index (BCI) QI/2013:                 114
WVB-PVFC Invest Business Confidence Index (BCI) QIV/2012:              83
WVB-PVFC Invest Business Confidence Index (BCI) QIII/2012:              107

Dividingreported enterprises according to the fields of business

Dividing reported enterprises according to the form of business ownership

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