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» The business confidence index increased 8 points in the fourth quarter of 2022
On January 10, 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 fourth quarter of 2022.
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. Being performed from the middle of mid-December 2022 to mid-January 2023, the survey attracted 160 Companies which active in many different fields in Vietnam, such as: construction, agriculture, forestry, electronics, telecommunications, trading, services…
According to the survey, Business Confidence Index (BCI) in the fourth quarter of 2022 reached 116 points, increased 8 points compared to the third quarter of 2022 and increased 19 points in comparison withthe same period last year. This index shows that the confidence of Vietnamese enterprises is still relatively optimistic about the current economic situation. Most businesses believe that Vietnam's economy will develop better in the coming time.
Summary survey’s result from 6 parts creating to the Business Confidence Index (BCI) in the fourth quarter of 2022 as following:
On the general economic situation of Vietnam today: About 45% of participating enterprises said that the general economy of Vietnam is now better than it was 12 months ago, 45% of these participants said that Vietnam economic conditions haven’t changed as of yet and 10% complained that economic conditions were less than 12 months ago.
The recent interest rate race of banks is continuing when banks push deposit rates to more than 11%/year, which makes lending rates continuously high. Developments in the banking market are causing production and business enterprises to worry because they will be strongly affected. The old loan is subject to interest expenses, the more difficult the new loan becomes. In addition, the money of people pouring into banks also contributes to reducing the demand for shopping in the market, affecting the recovery of enterprises. The interest rate increase takes place right at the end of the year when businesses need capital to produce and do business. Increased lending rates will add to production costs, causing product output to increase in price while the market is still relatively quiet. This makes business more difficult. Therefore, the majority of businesses participating in the survey said that they are affected by loan interest rates. Only 2.5% of respondents said they were not affected by this.
Prediction of Vietnam’s general an economic situation in the next 12 months: 70% of enterprises believe that in the next 12 months the Vietnamese economy will be better, 25.63% of enterprises assess that it will remain the same, 4.37% of enterprises feel pessimistic about the Vietnamese economy in the coming time.
The shortage of petroleum in the past time has really affected the production and business activities of enterprises. In that condition, the Union Ministry of Industry and Trade – Finance has closely coordinated, implemented consistently and in accordance with regulations (in calculating, determining and operating prices) in Decree No.83/2014/ND-CP and Decree 95/2021/ND-CP amending and supplementing a number of articles of Decree No. 83/2014/ND-CP, the Circulars guiding and directing the Government and the Prime Minister to manage domestic petroleum prices in accordance with world petroleum price movements; using the Price Stabilization Fund tool in a flexible and reasonable manner to limit the sharp increase of domestic petroleum prices compared to the fluctuations of world prices, contributing to the implementation of inflation control and support for economic recovery. It can be seen that the Government always accompanies, supports and creates the most favorable conditions for production and business activities of enterprises, stabilizes jobs and incomes for employees, helps international businesses and investors have and continue to believe and expect the stability and comprehensive development of Vietnam in the future.
Plans to use employees: 28.75% of participating enterprises expected to increase human resources, 60% of these expected to remain the same and 11.25% reduce in the future.
Investment plans for fixed assets: 48.75% of participating enterprises plan to increase the cost of fixed assets; 44.38% of these still have no plan and 6.87% plan to reduce the cost of fixed assets in the next 12 months.
The faith in the revenue growth: 28.13% of participating enterprises are confident that their revenue will be higher in the next 12 months, 62.5% of enterprises will remain the same and 9.37% of enterprises are concerned about their sales in the next 12 months.
The faith in the profit growth: 72.5% of participating enterprises believed that Their profit will increase in the following year, 23.75% of enterprises believed that profit will remain unchanged and 3.75% of enterprises are concerned about the decline in profits in the next 12 months.
WVB FIS Co., Ltd Survey Team has also conducted interviews with enterprises to see how the enterprises have made efforts to protect the brand when at the end of the year counterfeit goods and counterfeit goods hit the market. Therefore, most enterprises choose to register trademark protection, intellectual property protection measures. Always proactively review and denounce acts of counterfeiting, quickly detect and prevent counterfeiting and counterfeiting to avoid affecting the brand of the business. Coordinate with relevant departments and agencies to handle counterfeit goods on the market to be able to thoroughly solve the most counterfeit and counterfeit goods.
Although there are still many difficulties ahead, most businesses believe in a bright future, a brilliant 2022, outstanding economic growth.
No. |
Components |
Percentage (%) |
1 |
Current condition of economy |
135% |
2 |
Prediction of economic condition |
165.63% |
3 |
Prediction of extent of change in labor |
117.5% |
4 |
Plans to invest in fixed assets |
141.88% |
5 |
Prediction of revenue growth |
118.75% |
6 |
Prediction of profit growth |
168.75% |
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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.
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