Businesses have not yet escaped the bottom zone
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Businesses have not yet escaped the bottom zone

At the 2013 Vietnam Business Dynamics Conference held this morning, December 26, Ms. Doan Thi Quyen – Business Development Institute of Vietnam Chamber of Commerce and Industry (VCCI) said last year’s business situation was

Surveying 700 businesses operating across the country, this person said that the composite dynamic index of production and business situation in 2013 was still negative (-8 points), showing that businesses have not escaped the bottom zone.

The business continues to experience a turbulent year.

According to businesses, domestic demand in 2013 decreased compared to 2012, and the actual decrease was even much larger than predicted at the end of last year.

`Interest rates have decreased, but when asked if they need a loan, up to 35% of businesses said they would not borrow because the interest rate is very high and production and business capacity is not enough to pay the interest,` Ms. Quyen

The difficult market causes businesses to reduce selling prices and increase discounts, leading to a sharp decrease in average profit per unit of product, only at negative 30 points in 2013. The number of employees also

In the above context, the Government has proposed many solutions to support businesses, however, these policies have not yet reached those in need.

However, compared to negative 21 points at the end of 2012, the business dynamics index in 2013 has improved, reflecting a strong belief that the production and business situation in 2014 will be good.

Businesses have not yet escaped the bottom zone

Businesses expect a more favorable economy in 2014 but are still apprehensive about the improvement of inventories.

The main factor that makes businesses optimistic about next year is the expectation that the macro economy will be more stable and the labor market will change.

In this context, VCCI recommends that the Government focus on effectively implementing policies to support businesses, focusing on releasing inventory and bad debt in the real estate sector, and drastically restructuring businesses.

However, facing the fact that many policies have not been implemented effectively in recent times, Mr. Han Manh Tien – Chairman of the Vietnam Association of Business Administrators said that VCCI’s report needs to state more specifically the `disappointments` of

`For the past three years, businesses have believed like that but still haven’t achieved it, why is that so? What should businesses consider? Next year, they believe again but still can’t achieve it and then get bored,` Mr. Tien Thang said.

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