Business confidence index down in Q3
(VOV) - The business confidence index (BCI) fell by 13 points in the third quarter of this year, painting a gloomy picture for the national economy.
Only 28.18 percent of respondents say that overall economic conditions have improved compared to one year ago, 34.55 percent believe that the economic situation has stayed the same, and 37.27 percent say that current economic conditions are getting worse.
Despite the flat economic situation in the third quarter, businesses still believe that the Government’s macroeconomic policy will help improve the economy in the future.
Forecasting the economic outlook, 69.09 percent of respondents think overall economic conditions have improved considerably from a year ago and will continue to get better over the next twelve months, while only 6.36 percent are worried about a dismal economy in the upcoming year.
Regarding employment, 42.73 percent of the surveyed businesses say they plan to recruit more employees and 47.27 percent think they will have the same number of employees during the next twelve months. Only 10 percent report they will cut their company’s workforce.
In addition, 56.36 percent of respondents say they will maintain the same investment in fixed assets for the next 12 months, 29.09 percent think they will invest more, and 14.55 percent say they will reduce fixed asset investments in the next 12 months.
More than a half of the questioned businesses are confident that their sales will increase over the next 12 months, while 36.36 percent believe their revenues will stay the same, and only 6.36 percent are worried that their sales would decrease.
Talking about anticipated profit growth, 53.64 percent say they believe their profits will increase in the coming year and 23.64 percent say that their profits will remain stable, while 22.73 percent are worried about their profits dropping over the next year
The survey is conducted quarterly by WVB Vietnam drawing the participation of leading enterprises well-known in trademarks, total assets, total revenues, and employee numbers.
The third quarter survey extended from September 15 to the first week of October and included responses from 110 companies in 10 key sectors and industries in Vietnam. Half of the surveyed participants were small-and-medium-sized enterprises (SMEs).