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Outlook optimistic for 2014


 
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Vietnamese businesses have high expectations that the economy will flourish in 2014, according to the Vietnam Business Forum - a weekly magazine from the Vietnam Chamber of Commerce and Industry (VCCI).
Further, the magazine wrote that the Vietnamese businesses are prepared to begin a new stage of development.
An official in charge of the Vietnam Business Annual Report, Pham Thi Thu Hang, General Secretary of VCCI, is not surprised at the results of the survey conducted in late 2013. Following seven annual reports, it appears businesses are more optimistic about the nation's commercial situation and report being increasingly optimistic, said Hang.
While 2013 saw a record number of bankruptcies or shut-downs of enterprises, 2014 is expected to see a record number of revived businesses. This prediction is based upon expectations that sales this year will see an improvement, compared to 2013, and average selling prices will tend to rise.
Hang also displayed a more optimistic view: many businesses are confident that their production capacities will be much higher than in 2013. Many businesses, following a period of "hibernation", have begun to accelerate restructuring and have more confidence in the use of their resources. They expect that the number of orders will increase, compared with 2013. Also, many businesses are confident with their plans to recruit more staff in 2014.
Nguyen Thi Nguyet Huong, Chairwoman of the Vietnam Investment Development Group (VID), a firm specializing in the development of industrial parks and export processing zones, is confident that 2014 will see more businesses expanding their activities, so her group plans to enlarge industrial parks.
Businesses have high expectations on changes in the labor market, as this is the best time of year for businesses to recruit those who can immediately meet job requirements without being retrained, even in key positions. The second reason is the opening of markets, tax incentives and the improved ability to raise capital. The third reason is due to improved infrastructure and support programs.
Referring to the strategy of the socio-economic development period 2011 - 2020, the majority of businesses, some 64.6 percent, are aware that the increase in domestic value, added value and competitiveness of products are important objectives in their strategies.
So far, Vietnamese enterprises have not focused on research and development (R&D), with only 32.5 percent of businesses choosing this method. Considering this problem, economist Pham Chi Lan shared that she had recently conducted a survey among businesses in the southern region, and she felt there exists a new movement within these enterprises. Most of these businesses recommended that the government promote industrial development to support businesses in raising the proportion of value added products.
I’m Julia Ayscough. We will be back with more news from English123.

Source: vietnamnews

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