VN firms upbeat about trade

Viet Nam News - - BUSINESS -

HCM CITY — Viet­namese en­ter­prises are among the world’s most optimistic about in­ter­na­tional trade prospects and most con­fi­dent when it comes to suc­ceed­ing in the cur­rent en­vi­ron­ment, ac­cord­ing to an HSBC re­port.

Ninety-one per cent of Viet­namese re­spon­dents, com­pared with 75 per cent glob­ally, be­lieve the out­look for trade is favourable de­spite geopo­lit­i­cal fac­tors which are curb­ing en­thu­si­asm else­where.

They cited “a favourable eco­nomic en­vi­ron­ment, de­creas­ing costs of ship­ping, lo­gis­tics and stor­age, and an in­creas­ing de­mand for their prod­ucts as the top three driv­ers of trade growth”.

In ad­di­tion, 91 per cent be­lieve they will suc­ceed in the cur­rent en­vi­ron­ment, com­pared to 81per cent of busi­nesses glob­ally.

Con­sumer con­fi­dence, com­mod­ity prices and global eco­nomic growth are the top fac­tors for their pos­i­tive out­look, ac­cord­ing to the re­port.

On a global level, re­spon­dents are upbeat about their prospects, en­cour­aged by cus­tomer de­mand and favourable eco­nomic con­di­tions.

How­ever, many Viet­namese firms are re­vis­ing their strate­gies for fear that pro­tec­tion­ist poli­cies will have a neg­a­tive im­pact on in­ter­na­tional trade.

Win­field Wong, head of Whole­sale Bank­ing of HSBC Vieät Nam, said: “Viet­namese busi­nesses’ op­ti­mism re­flects an econ­omy that’s been one of Asia’s star per­form­ers, which has been grow­ing fast.”

“They are optimistic as they con­sider them­selves well-po­si­tioned thanks to a strong do­mes­tic econ­omy, con­fi­dence in the global econ­omy, as well as far­reach­ing trade deals and bur­geon­ing trade re­la­tions with ma­jor mar­kets.”

The ma­jor­ity of Viet­namese re­spon­dents are pos­i­tive about part­ner­ships es­tab­lished with key trad­ing part­ners, with 69 per cent be­liev­ing ASEAN mem­ber­ship will help their busi­ness in the next three years.

Sim­i­larly, 65 per cent of Viet­namese firms be­lieve the forth­com­ing EU-Vieät Nam Free Trade Agree­ment will have a pos­i­tive im­pact on their busi­ness.

The two sides agreed on a fi­nal text for the trade agree­ment in June.

Lo­cal firms are also look­ing be­yond these agree­ments for growth. Over a quar­ter of busi­nesses are eye­ing op­por­tu­ni­ties in Ja­pan, while 23 per cent are look­ing to ex­pand into China, and a fifth are con­sid­er­ing South Korea for ex­pan­sion.

In an ef­fort to raise stan­dards and boost com­pet­i­tive­ness, 45 per cent of Viet­namese re­spon­dents said that up-skilling their work­force was a key fo­cus for in­vest­ment while 43 per cent en­ter­prises said they were fo­cus­ing more on pro­duc­tiv­ity and skills de­vel­op­ment.

Mean­while, around eight out of 10 com­pa­nies in the coun­try are us­ing data to op­ti­mise their per­for­mance, com­pared with 75 per cent glob­ally.

De­spite the over­all optimistic out­look on trade op­por­tu­ni­ties, four out of five Viet­namese firms (78 per cent) said that for­eign gov­ern­ments were be­com­ing more pro­tec­tion­ist, con­sid­er­ably higher than the global bench­mark (63 per cent).

The Navigator sur­vey shows more than half of com­pa­nies (51 per cent) glob­ally ex­pect that FTAs, where they ap­ply to their coun­try and in­dus­try, will ben­e­fit them over the next three years.

FTAs are par­tic­u­larly pop­u­lar in emerg­ing mar­kets, with 60 per cent of firms say­ing they will have a pos­i­tive im­pact, com­pared to 45 per cent of firms in de­vel­oped mar­kets.

The Navigator: Now, Next and How for Busi­ness re­port, which polled over 8,500 busi­nesses, was based on a global sur­vey gaug­ing busi­ness sen­ti­ment and ex­pec­ta­tions on trade ac­tiv­ity and busi­ness growth from 8,650 de­ci­sion­mak­ers in 34 mar­kets. — VNS

Pro­cess­ing tra fish for ex­port at South Vina Ltd Co in the Cöûu Long (Mekong) Delta city of Caàn Thô. — VNA/VNS Photo Vuõ Sinh

Newspapers in English

Newspapers from Viet Nam

© PressReader. All rights reserved.