VietNamNet Bridge – Small merchants have been sitting idle, while manufacturers have to scale down the production, saying that they have never seen such a low purchasing power before.

Sharing the same business premises with others, relocating the offices to the suburbs, laying off workers and cutting down all possible expenses are the things most businessmen are doing to save every dong to survive the current difficult period.

The government of Vietnam has been prohibiting exporting raw natural minerals over the last few years. However, the ban has not had high enforcement.

Commercial banks have been told by the State Bank to lower the deposit interest rate to 7.5 percent per annum. However, if they do, they would not be able to attract deposits.

The reported inflation decrease in March turns out to be not the good news at all. This, in the eyes of businesses, means the low market demand and the unsalability of goods.

The year of dragon, the bad year for many Vietnamese businessmen is over. However, the debts still exist, and the big tycoons still have to manage to earn money to pay debts.

A lot of businesses have decided that their staff would start the Lunar New Year holiday two weeks before Tet, because they don’t think that the operation on the last days of the Year of Dragon would help bring more revenue.

The owners of Trung Nguyen coffee, Vinaxuki automobile, My Hao cosmetics and Bibica sweets brands have been going to retail markets to survey the purchasing power, assembling cars and selling products themselves.

It is highly possible that the State Bank would slash the deposit interest rate further--by one percent, to make it easier for businesses to access bank loans. However, economists have warned that this would do more harm than good.