return icon Vietnamnet.vn

Business outlook optimistic

 VietNamNet Bridge – Most enterprises operating in Viet Nam were optimistic about the economic recovery, saying business was bouncing back this year, according to the General Statistics Office (GSO).

VietNamNet Bridge – Most enterprises operating in Viet Nam were optimistic about the economic recovery, saying business was bouncing back this year, according to the General Statistics Office (GSO).



{keywords}

 

Goods are unloaded at the Vietsopetro Joint Venture 's service port in Ba Ria-Vung Tau Province. Vietnamese enterprises are gradually stablising production and face fewer difficulties than in previous years. 

 

 

 

This was part of the release by the GSO yesterday (June 29) after conducting a survey over business trends in 2014 among 7,675 enterprises across the country.

Director of the GSO's Industrial Statistics Department Pham Dinh Thuy said that Vietnamese enterprises were gradually stablising production and faced fewer difficulties than in previous years.

From January 2013 to March 2014, 5.6 per cent of enterprises stopped operations, 2.8 per cent lower than in 2012.

In the first half of this year, over 37,300 new enterprises were registered with total capital of VND230.9 trillion (US$11 billion). This saw a decrease of 4.1 per cent in number but an increase of 19.3 per cent in capital compared with the same period last year.

According to the survey, over 51 per cent of enterprises said they would maintain the same labour force as last year, over 38 per cent said they would expand, while only ten per cent said they might reduce their workforce.

Over 60 per cent of enterprises said they planned to maintain capital scale while 33 per cent said they planned to increase investments. Only 6.2 per cent revealed they would slash investment.

The correlative percentage of last year was 55.3 per cent, 30.8 per cent and 13.9 per cent.

Other indicators including expected revenue, profits and export value also showed a brighter outlook, Thuy said.

For example, over 71 per cent expected higher revenues than last year and 75 per cent expected higher profits.

However, Thuy said that up to 55.8 per cent of enterprises said they did not know or were unable to assess the demands of foreign markets.

"This proves that Vietnamese enterprises are mainly small and medium-sized, and only a few big enterprises belong to the global production chain," Thuy said.

"As a result, export enterprises are struggling to access the global market," he said.

In March, more than half of the enterprises said that they had not taken out loans, according to the survey. Over 70 per cent said they did not need extra credit, and nearly 30 per cent said procedures to take out bank loans were complicated and time-consuming.

Nearly 19 per cent blamed high interest rates and 14.3 per cent said they did not have the collateral to access loans.

"The percentage is quite high," Thuy said, adding that it might imply that enterprises were cautious about expanding production or the economic recovery was unsustainable.

GSO General Director Nguyen Bich Lam said that many important indicators in the first half of this year reflected the rebound from the bottom of Viet Nam's economy.

Gross domestic production GDP in the first six months increased 5.18 per cent compared with the same period last year, and the consumer price index (CPI) had increased 1.38 per cent compared to last December.

Viet Nam's industrial production is also improving, with estimated growth of 5.8 per cent seen in the first half of this year, higher than last year's 5.3 per cent rise.

Lam said that if there were no major changes to the macroeconomy, Viet Nam could reach growth of 5.8 per cent and hold inflation at 7 per cent as targeted by the National Assembly.

The World Bank estimates the economy will grow 5.4 percent this year, slower than the government target of 5.8 percent, and a seventh straight year of growth below 7 percent.

VNS/VNN

MORE NEWS

Vietnam demands Taiwan to cancel illegal drills in Truong Sa’s waters

Vietnam resolutely opposes and demands Taiwan (China) to cancel its live-fire exercises in the waters around Ba Binh island that belongs to Vietnam's Truong Sa (Spratly), Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang stated on December 2.

Make-in-Vietnam cameras have high security, satisfy standards

Make in Vietnam camera manufacturers are enhancing security capability and satisfying requirements on information security set by the Ministry of Information and Communications (MIC) for devices such as cameras and Internet of Things (IoT).

Government plans to rearrange state-owned enterprises till 2025

Deputy Prime Minister Le Minh Khai has signed a decision approving a plan of rearrangement of state-owned enterprises for the period of 2022-2025 in the form of one-member limited company, equitization, re-arrangement and divestment.

Transport Ministry urges new ship channel for large vessels in Mekong Delta

The Ministry of Transport has urged Tra Vinh Province to implement compensation payment for site clearance and resettlement support to build a new ship channel for large vessels in the Hau River.

Toan retains WBA Asia belt against Amparo in Bangkok

Le Huu Toan successfully defended his World Boxing Association (WBA) Asia minimum-weight (48kg) belt during The Challenger event on November 30 in Bangkok, Thailand.

Billions of dollars from foreigners invested in Vietnam’s enterprises

Foreign capital keeps flowing into Vietnam through many different channels, helping investors regain their confidence in the stock market and the economy.

Urban areas, parks to be built on Red River alluvium grounds

Hanoi authorities plan to build new urban areas and eco-friendly housing, and develop open space with parks, urban squares and flood parks on thousands of hectares on the alluvium grounds of the Red River area.

Target of 1 million social housing units difficult to reach

The goal of developing 1 million social housing units may not be feasible.

Ministry to control rice import management

The Ministry of Industry and Trade (MOIT) fears the high level of rice imports and the failure to control imports will affect domestic production.

Gambling soars during World Cup

Football betting is taking place in the open air at venues where people gather to watch World Cup matches, or quietly online.

Michelin Guide to announce first Vietnamese restaurant selections

Hanoi and Ho Chi Minh City have been selected by Michelin as the latest destinations joining the international selection, as compiled by the Michelin Guide.

Ministry to crack down on Internet ads violations

The Ministry of Information and Communications held a conference in Hanoi on November 30 to roll out Internet advertising management measures.

Seven-day Tet holiday fixed for State employees

Officials, civil servants, public employees and workers of State administrative and socio-political organisations will enjoy a seven-day Lunar New Year (Tet) and four-day National Day holidays next year.

Vietnam has opportunity for energy transition towards green growth

Vietnam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfill its energy transition target towards green growth.

PM requests combined efforts to combat IUU fishing

Prime Minister Pham Minh Chinh called for concerted efforts to fight illegal, unreported and unregulated (IUU) fishing while chairing a teleconference with 28 coastal provinces and cities on December 1.
back_to_top