VN showed resilience in economic crisis
Viet Nam showed resilience in economic crisis.
HCM CITY - Viet Nam is weathering the global crisis better than many other countries, according to the latest report from the bi-annual Regus Business Tracker survey. The second edition of the survey, which was released yesterday, interviewed more than 15,000 companies in more than 75 countries about the financial performance of their businesses and their expectations for growth.
While 42 per cent of global businesses experienced a rise in revenues in the past year, Viet Nam reported a 44 per cent rise. Up to 94 per cent of respondents in Viet Nam expect their revenues to continue to increase during the coming year, while the global percentage was 70 per cent.
The resilience of the private sector appears to have been the major driving force behind the recent recovery, but the government's stimulus program also contributed. The easing of monetary policies and implementation of a sizable fiscal package boosted domestic demand, which led to a recovery in industrial production and helped maintain robust retail sales. The easing of monetary and fiscal policy under the stimulus program help boost imports, which contributed to the country's significant trade deficits. Access to foreign exchange has been difficult and imposing taxes on enterprises has adversely affected investor's sentiment toward Viet Nam.
The key findings of this worldwide survey emphasizes that the business community needs to retain an element of caution in their optimism. The study surveyed companies' net growth, with 12 per cent more firms reporting an increase in revenues and 8 per cent more companies experiencing an increase in profits.
However, businesses across the globe need to focus on cost management, streamlining and becoming operationally more flexible. When asked about the measures they believed would be most effective in aiding the recovery, 64 per cent of companies globally advocated implementing additional tax breaks for businesses. Meanwhile, 58 per cent of businesses emphasized that interest rates should remain low for another twelve months.
The Regus Group is a leading global provider of workspace solutions. Regus has more than 1,000 locations in 450 cities and 80 countries. In Viet Nam Regus has one facility in Ha Noi and two in HCM City, while William's is planning on doubling its service capacity in the country during the next year.
(Source: VNS)