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» The Business Confidence Index falls to 97 points in the Fourth Quarter of 2021.

On January 18th 2022, Vietnam World Vest Base Financial Intelligence Services Company Limited (WVB FISL) announced the result of the survey about WVB Business Confidence Index in the Fourth Quarter of 2021. 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 Employees. Being performed from the middle of December 2021 to the middle of January 2022, the survey attracted 165 Companies which active in many fields in Vietnam, such as, construction, agriculture, forestry, electronics, trading, telecommunications, services…In which, small and medium-sized enterprises accounted for the majority of enterprises that participated in this quarter's survey.

According to the survey results, for 3 consecutive quarters from the fourth quarter of 2020 to the second quarter of 2021, the business confidence index (BCI)  remained at 102 points, the business confidence index in the Fourth quarter of 2021decreases down to 97 points. It shown that the outbreak of the Covid-19 epidemic has brought unprecedented challenges, having a significant impact on the Vietnamese economy during this period.

Summary of investigation results of 6 components building Business Confidence Index (BCI) in the Fourth quarter of 2021 as follows:

 - On the general economic situation of Vietnam today: Only 17.58% of enterprises participating in the survey said that Vietnam's overall economy is now better than 12 months ago, 46.06% of enterprises said that economic conditions of Vietnam remained the same. 36.36% of enterprises said that economic conditions were somewhat worse than 12 months ago
The strong outbreak of the Covid-19 epidemic along with the application of social distancing measureshas affected the circulation of goods, leading to disruptions of supply chains and impactsto the production and business activities of the enterprise. According to the survey, 48.08% of businessessaid that social distancing has had a serious impact on commercial activities of companies and their services, 38.46% said that this has little impact on businesses, 11.54% said that it does not affect the business and only 1.92% give a different opinion.

- Prediction of Vietnam’s general an economic situation in the next 12 months: 45.45% of surveyed companies believe that within the next 12 months, Vietnam's economy will be better, 41.21% of businesses rated it as the same, only 13.33% felt pessimistic about the economy in the future.

- Plans to use employees: 21.21% of businesses plan to increase their human resources; 66.67% is expected to stay the same and 12.12% of businesses will reduce the number of manpower in the future.

On August 28, 2021, the Government has just issued Resolution No. 97/NQ-CP to unify the plansupport to reduce electricity bills, reduce electricity prices (phase 5) for electricity users affected byCovid-19 pandemic. The government's support to businesses during the Covid 19 pandemic has alsoreduced the difficulties of businesses when the Covid epidemic is still complicated.According to the survey, 21.15% of businesses think that the reduction in electricity prices has a very good effect onproduction and business situation of enterprises, up to 46.15% of enterprises think thisinfluence is good, 19.23% of enterprises rate this support as medium and13.46% have not assessed the level of influence.

- Investment plans for fixed assets: 20.61% of surveyed companies planned to invest more costs for fixed assets, 61.21% of these still have no plan and 18.18% planned to reduce cost for fixed assets in the next 12 months.
- The belief in revenue growth: 47.88% of participating enterprises were confident of increase in sales, 44.24% of businesses said that the revenue would remain. 7.88% business is concerned about the number of sales going down in the next 12 months.
- The belief in profit growth: 50.91% of enterprises believed that profit would rise in the following year, 41.82% of businesses believed that profit would remain and 7.27% business is concerned about the number of profit going down in the next 12 months.

On April 02, 2021, the State Bank issued Circular 03/2021/TT-NHNN amendingCircular 01/2020/TT-NHNN stipulating the rescheduling of debt repayment, exemption and reduction of interest, fees, and retentiondebt group to support customers affected by the Covid 19 epidemic to December 31, 2021.This helps businesses and banks reduce the pressure on debt repayment, temporarily not being affectedmove to a worse debt group, take advantage of debt restructuring opportunities, businesses have more resources and time to resume production and business. Due to the benefits that the new policy brings, there are up to 53.85% of businesses surveyed thinks that this policy is very supportive for businesses in difficult times.

According to Decision No. 28/2021/QD – TTG of the Prime Minister of the Government, the employer are reduced the contribution rate from 1% to 0% of the monthly salary fund of the employeessubject to participation in unemployment insurance. Time to reduce the payment: 12 months,from October 1, 2021 to the end of September 30, 2022. This policy also workslaunched for the purpose of supporting employers, 51.92% of businesses are greatly affectedby this policy.

During the complicated situation of the Covid-19 epidemic, many new policieslaunched to actively support businesses, respond to the COVID-19 pandemic and its consequencesfrom the pandemic will be one of the biggest challenges for business in this era. The management team will be primarily responsible for risk management for the business.It is the leaders who will have to determine the appropriate time and method to carry out the taskcomplex case of returning the workforce to the workplace after the government's bans, as in Vietnam, is relaxed. When the business moves to the next stage ofIn response to the COVID-19 pandemic, businesses need to come up with creative solutions to ensure safetylabor is maintained in a sustainable way. According to the survey, 25.37% of businesses will change theirMeasures and requirements on occupational safety such as wearing masks, providing testing for employeesemployees, etc., 16.42% of businesses will restructure their workplaces to strengthen social distancing,16.42% of businesses will apply the measure of changing shifts or dividing work shifts to further reducecontact, 5.97% of businesses allow some remote working locations and up to 35.82% of businesseswill be applied all the above measures to prevent the disease.

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