» The Business Confidence Index reduced 02 points in the Second quarter of 2022

On Aug 15, 2022, Vietnam World Vest Base Financial Intelligence Services Company Limited (WVB FISL) published the results of WVB’s survey about business confidence index for the second quarter of 2022.

This survey is conducted quarterly by WVB Company. 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 June 2022 to the end of July 2022, the survey attracted 173 Companies which active in many different fields in Vietnam, such as: construction, agriculture, forestry, electronics, telecommunications, trading, services…

According to the survey, Business Confidence Index (BCI) in the first quarter of 2022 reached 120 points, reduced 2 points compared to the first quarter of 2022 and increased 16 points as the same period last year. This shows that the Vietnam enterprises is still relatively optimistic about the current economy. Most of the companies have said that the Vietnam's economy is stabilizing and has better future prospects.

Summary survey’s result from 6 parts creating to the Business Confidence Index (BCI) in the First Quarter of 2022 as following:

On the general economic situation of Vietnam today: About 46.24% of  participating  enterprises said that the general economy of Vietnam is now better than it was 12 months ago, 39.31% of these participants said that Vietnam economic conditions haven’t changed as of yet and 14.45% complained that economic conditions were less than 12 months ago.

In the context that the world oil price is closed to the border of 120 USD/barrel, it is even forecast that it can surpass the peak to 130 USD/barrel. Along with the zero covid policy that China is pursuing, it is seriously affecting the global supply chain of goods. Causing very high inflation in the world, an economic recession is taking place. This also affects businesses more or less, especially the logistics industry in Vietnam, which currently has the highest prices in the region, leading to increasing input of products, affecting goods consumption and consumption. . Businesses have also made many proposals such as: Stabilizing gasoline and oil prices; consider taxes and fees to support businesses, improve the storage capacity of gasoline and oil, and at the same time improve the capacity of domestic oil refinery and petrochemical exploitation to ensure long-term supply for the economy; reduce dependence on the rise of world gasoline and oil prices, in order to stabilize and develop the domestic economy….

Besides, several decrees in the second quarter of 2022 were issued by the State such as: Decree 31/2022/ND-CP dated May 20, 2022, on interest rate supports from the state budget for loans of enterprises. businesses, cooperatives, business households. Specifically, enterprises, cooperatives and business households are supported with an interest rate of 2%/year and draft No. 98/TTr-BTC dated May 6, 2022, of the Ministry of Finance decrees extending the time limit for paying price tax. Value added (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent and water surface rent in 2022 have all received a lot of positive feedback from businesses. Up to 41.79% of enterprises participating in the survey said that this support package will contribute to reducing difficulties, helping to restore production and business, creating favorable conditions for export promotion and thereby generating revenue for the local economy, State budget; 50.75% Enterprises think that this new decree will help them have more large capital sources. Instead of paying taxes to the State, they will spend the resources to invest in production and business, promote growth, and then return. contribute to the budget. It can be affirmed that these are policies that are suitable with the common context of many countries around the world in providing solutions to remove difficulties for businesses most severely affected by the COVID-19 epidemic.

Prediction of Vietnam’s general an economic situation in the next 12 months: Approximately 65.32% of participating enterprises believed that Vietnam's economy will be better in the next 12 months. 31.79% of these supposed to be unchanged and 2.89% predicted the future Vietnam's economy in 2023 is worse.

Plans to use employees: 30.64% of participating  enterprises expected to increase human resources, 60.69% of these expected to remain the same and 8.67% reduce in the future.

Investment plans for fixed assets: 28.32% of participating enterprises plan to increase the cost of fixed assets; 64.74% of these still have no plan and 6.94% plan to reduce the cost of fixed assets in the next 12 months.

The faith in the revenue growth: 68.21%  of  participating  enterprises are confident that their revenue will be higher in the next 12 months, 27.75% of enterprises will remain the same and 4.05% of enterprises are concerned about their sales in the next 12 months.

The faith in the profit growth: 63.01% participating enterprises believed that Their profit will increase in the following year, 34.1% of enterprises believed that profit will remain unchanged and 2.89% of enterprises are concerned about the decline in profits in the next 12 months.

The WVB FIS Co., Ltd survey team also conducted interviews with businesses to find out what is the cause of the problem. Evaluation of implementation results through Vietnam chamber of commerce and industry's 2021 Provincial Competitiveness Survey (PCI) project showed that only 8% of enterprises participating in the survey said they had received support. We received 20.59% of the comments that the implementation plan and object were not suitable; 30.88% of the opinions assessed that the reason was that the conditions and procedures for receiving support were still difficult; the rest of the enterprises (41.18% of the respondents) think that the law's popularity is still low, most of the enterprises do not know the Law yet. Although there are still many difficulties ahead, most businesses believe in a bright future, a brilliant 2022, and outstanding economic growth.

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About World Vest Base

Established in 1985, in Chicago, USA, World' Vest Base (WVB) has become the world’s leading global provider of financial fundamentals serving the research and analytic needs of thousands of top companies in the financial services, media and corporate markets. The WVB global database is the financial industry’s premier source of detailed and transparent financial statement data on public companies. The database universe spans over 50,000 public companies over 130 countries from Asia, Africa, Australia, Europe, Latin America and North America. WVB Regional databases also cover hundreds of thousands of private companies in Thailand, Vietnam, Laos, Cambodia, Malaysia, and Egypt. WVB also provides databases with Insider & Major Shareholders Transactions, specialized End-of-Day pricing for emerging markets and worldwide credit risk and business risk scoring. 
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