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. (Photo: tinnhanhchungkhoan.vn) HCM City (VNS/VNA) - Vietnamese enterprises are among the world’smost optimistic about international trade prospects and most confident when itcomes to succeeding in the current environment, according to an HSBC report.
Ninety-one percent of Vietnamese respondents, compared with75 percent globally, believe the outlook for trade is favourable despitegeopolitical factors which are curbing enthusiasm elsewhere.
They cited “a favourable economic environment, decreasingcosts of shipping, logistics and storage, and an increasing demand for theirproducts as the top three drivers of trade growth”.
In addition, 91 percent believe they will succeed in thecurrent environment, compared to 81per cent of businesses globally.
Consumer confidence, commodity prices and global economicgrowth are the top factors for their positive outlook, according to the report.
On a global level, respondents are upbeat about theirprospects, encouraged by customer demand and favourable economic conditions.
However, many Vietnamese firms are revising their strategiesfor fear that protectionist policies will have a negative impact oninternational trade.
Winfield Wong, head of Wholesale Banking of HSBC Vietnam,said: “Vietnamese businesses’ optimism reflects an economy that’s been one ofAsia’s star performers, which has been growing fast.”
“They are optimistic as they consider themselveswell-positioned thanks to a strong domestic economy, confidence in the globaleconomy, as well as far-reaching trade deals and burgeoning trade relationswith major markets.”
The majority of Vietnamese respondents are positive aboutpartnerships established with key trading partners, with 69 percent believingASEAN membership will help their business in the next three years.
Similarly, 65 percent of Vietnamese firms believe theforthcoming EU-Vietnam Free Trade Agreement will have a positive impact ontheir business.
The two sides agreed on a final text for the trade agreementin June.
Local firms are also looking beyond these agreements forgrowth. Over a quarter of businesses are eyeing opportunities in Japan, while23 percent are looking to expand into China, and a fifth are considering theRepublic of Korea for expansion.
In an effort to raise standards and boost competitiveness, 45percent of Vietnamese respondents said that up-skilling their workforce was akey focus for investment while 43 per cent enterprises said they were focusingmore on productivity and skills development.
Meanwhile, around eight out of 10 companies in the countryare using data to optimise their performance, compared with 75 percentglobally.
Despite the overall optimistic outlook on tradeopportunities, four out of five Vietnamese firms (78 percent) said that foreigngovernments were becoming more protectionist, considerably higher than theglobal benchmark (63 percent).
The Navigator survey shows more than half of companies (51percent) globally expect that FTAs, where they apply to their country andindustry, will benefit them over the next three years.
FTAs are particularly popular in emerging markets, with 60percent of firms saying they will have a positive impact, compared to 45 percentof firms in developed markets.
The Navigator: Now, Next and How for Business report, whichpolled over 8,500 businesses, was based on a global survey gaugingbusiness sentiment and expectations on trade activity and business growth from8,650 decision-makers in 34 markets.-VNS/VNA
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