Economy

Around 100,000 businesses are forecast to close between 2011 and 2012. The figure is equal to half of the figures over the entire past two decades since Vietnam adopted the Law on Enterprises, Chairman of the Vietnam Chamber of Industry and Commerce (VCCI), Vu Tien Loc forecast.   VCCI Vu Tien Loc (left) visit an enterprise  Loc further said the enterprises that were still in business were meeting difficulties such as incomprehensive policies, lack of capital and especially a lack of transparency in the business environment. Major companies have been accused of lacking transparency, which in turn has jeopardised small businesses providing them with services. Unstable policies are also blamed for the downturn. In a survey with 8,177 enterprises, only 10% said they could predict the changes in macro-economic policies. However, Loc said what's most disappointing is that enterprises have not been proactive. When were asked what … [Read more...] about Vietnam economy continues to face difficulties

Decreasing salaries has lowered consumer demands and badly affected many enterprises and the whole economy in general.   According to the Ministry of Industry and Trade, as of September 1, the inventories of the industries of processing and manufacturing increased by 9.3% compared to the same time last year. This shows Vietnamese firms are still having great difficulties. Revenue from the retail and services industries in the first nine months increased 12.5% compared to last year, which is lower than normal annual growth rate of 20-24%. In August and September, the CPI for medical care and education sharply increased, and rising fuel and electricity prices has also made people tighten their purses. Phan Van Thien, head of Bibica Corporation-a confectionery manufacturer, said even though they have been trying their best to keep prices stable while introducing more promotions and discount programmes, consumer demand … [Read more...] about Downturn continues to burden the economy

A total of 16,000 enterprises across Vietnam had filed for bankruptcy in the first four months of this year, up 16.9% from a year earlier, a report said.   Vietnam’s economy remains sluggish The National Financial Supervisory Committee issued a report on Vietnam’s economic situation during the four-month period on May 2. The report lists the usual obstacles facing companies, such as access to capital, increased input costs, slow sales and high inventories. “Corporate weakening would not only affect state budget revenues for this year but slow down the economy’s rebound next year,” the committee warned. According to the committee, demand in the entire economy is still rather weak as the USD1-billion trade deficit in April just simply depicted a sharp fall in export revenues. Credit growth rates in the banking system showed positive signs compared to the same period last year. The credit growth rate in the … [Read more...] about Vietnam’s economy remains sluggish