The country’s production and business activities are expected to improve in the second half of the year, according to results of a survey released by the Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City on July 9.
In the Vietnam Business Insight Survey for the first six months of the year, questioned enterprises agreed that there were big improvements in policy making and macro governance.
According to the survey, in the second half of the year, 66.7 percent of businesses plan to maintain their business scale, 22 percent to expand their business, 10.9 percent to contract their business scale and 0.3 percent may end operations – which overall is a positive signal showing the recovery of businesses’ confidence.
In the year’s first half, nearly 39,000 new enterprises with a total capital of 194 trillion VND were set up, a rise of 7.6 percent over the second half of last year. However, the percentage of enterprises planning to seek bank loans was lower, 54 percent compared to 57.3 percent last year.
Inventories remained businesses’ biggest worry despite some positive results in GDP growth rate, which was estimated at 4.9 percent, a CPI increase of 2.4 percent, export value of 62.1 billion USD and FDI attraction of over 10 billion USD.
During the six-month period, 69 percent of enterprises were unable to find suitable solutions for marketing their products, with most still using conventional ways such as seeking new export markets, cutting prices and increasing advertisement.
About 15 percent of enterprises said economic policies and macro economic management to remove business-production difficulties, support market and bad debt settlement were highly effectively, while 27 percent said they proved to have little effect.
According to experts, to promote business and production activities in the second half of the year, the Government should intensify business development supporting programmes, issue suitable tax policies as well as create conditions for export opportunities.-VNA