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» The business confidence index decreased by 6 points in the first quarter of 2023

      On April 20, 2023, Vietnam World Vest Base Financial Intelligence Services Company Limited (WVB FISL) published the results of  WVB’s survey about business confidence index for the  first quarter of 2023.
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. The survey conducted from mid-March 2023 to mid-April 2023 has attracted the participation of 168 enterprises operating in many different fields in Vietnam such as construction, chemicals, food, electronics, telecommunications, trade, services…
According to the survey, Business Confidence Index (BCI) in the first quarter of 2023 reached 110 points, decrease 6 points compared to the fourth quarter of 2022 and decrease 10 points as the same period last year. This index shows that the confidence of Vietnamese enterprises is not very optimistic about the current economic situation. However, businesses believe that Vietnam's economy will still grow better in the coming time.

Summary survey’s result from 6 parts creating to the Business Confidence Index (BCI) in the the first quarter of 2023 as following:
 - On the general economic situation of Vietnam today: 39.29% of enterprises said that Vietnam's economic conditions remained the same compared to 12 months ago, 20.23% said that economic conditions were somewhat worse compared to 12 months ago, 40.48% of enterprises participating in the survey said that Vietnam's overall economy is now better than the previous 12 months.
Previously, from February 1 to December 31, 2022, the Government issued Decree 15/2022/ND-CP regulating tax exemption and reduction policies according to Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the socio-economic recovery and development program after the COVID-19 pandemic. The policy of reducing VAT from 10% to 8% has reduced the selling price of some goods on the market, thereby increasing purchasing power, contributing to creating favorable conditions for businesses to expand production activities, while also reducing inflationary pressure. However, from January 1, 2023, goods and services previously reduced value-added tax returned to the old tax rate of 10%. Up to 40.68% of businesses surveyed said that this had a great impact on their business situation.
- Prediction of Vietnam’s general an economic situation in the next 12 months: 52.98% of enterprises believe that in the next 12 months, Vietnamese’s economy will be better, 38.1% of enterprises assess that it will remain the same, 8.92% of enterprises feel pessimistic about Vietnamese’s economy in the coming time.
According to Decision 02/2023 on the average retail price framework recently issued by the Government, from February 3, the minimum average retail price of electricity increased by 220 VND/KWh and the maximum increase of 538 VND/KWh, equivalent to an increase of 13.7% and 28.2%, respectively. Enterprises participating in the survey said that rising electricity prices will put more pressure on them because rising electricity prices will lead to increased input costs in the context of reduced orders and reduced exports.
- Plans to use employees: 24.41% of enterprises are expected to increase human resources, 69.64% are expected to remain the same and 5.95% of enterprises will reduce the number of human resources in the near future.
- Investment plans for fixed assets: 25.6% of participating enterprises plan to increase the cost of fixed assets; 67.86% of these still have no plan and 6.54% plan to reduce the cost of fixed assets in the next 12 months.
- The faith in the revenue growth: 56.55% of  participating  enterprises are confident that their revenue will be higher in the next 12 months, 39.88% of enterprises will remain the same and 3.57% of enterprises are concerned about their revenue in the near future.
- The faith in the profit growth: 55.36%of participating enterprises believed that Their profit will increase in the following year, 38.1% of enterprises believed that profit will remain unchanged and 6.54% of enterprises are concerned about the decline in profits in the next 12 months.
WVB FIS Survey Team Co., Ltd  has also conducted interviews with enterprises to see which forms of e-commerce are being applied while e-commerce is a pioneering field and becomes an inevitable trend of the digital economy, creating an economic development engine and leading digital transformation in enterprises. Thereby, most enterprises have chosen the appropriate form combined with improving the quality of products and services for enterprises. Although there are many difficulties and challenges ahead, most businesses believe in a bright future, a brilliant 2023, 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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