Vietnam business confidence index falls further in q1/2011: survey

Vietnam’s Business Confidence Index (BCI) fell another 17 points to 109 in the first quarter of this year.

Vietnam’s Business Confidence Index (BCI) fell another 17 points to 109 in the first quarter of this year, the survey with 333 local enterprises in 11 key sectors by WVB Vietnam Financial Intelligence Services Company Limited (WVB FISL) and PVFC Invest.

The survey result, released on April 18, showed the caution and concerns of local companies, especially small and medium enterprises, amid current economic conditions including dong devaluation, higher coal, electricity, gas prices, inflation.

As many as 72% survey correspondence say their business was affected by dong devaluation, 46% plans to raise their products and service prices due to higher input costs.

As many as 25.83% surveyed companies see the economy is improving, 45.95% say it is getting worse while 28.23% think the conditions unchanged.

The optimistic companies fell 23% while the pessimistic rose 32% from quarter 4/2010.

Around 45% companies confirmed that they have no plans to expand business operation in 2011 but to apply measures to save production costs, cut labor, and restructure to cope with unfavorable economic conditions.

However, the outlook for the next 12 months looks better with 54% companies believe Vietnam economy will improve, 68% expect higher revenue and 64% forecast higher profit in 12 months – Stoxplus.com

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