Enterprises are cautious with their 2014 business plans

Enterprises are cautious with their 2014 business plans 3

Enterprises are cautious with their 2014 business plans

2013 is about to end, in addition to the chaos of year-end settlement and bonus distribution, business owners are also struggling with business orientation and revenue and profit goals for 2014. In terms of growth

`The business environment does not allow us to have a long-term strategy because we cannot know whether inflation will be stable or not, or how to expand investment,` said Mr. Le Chi Phuc – General Director of SGI Capital.

Investigating 700 businesses nationwide, the Vietnam Chamber of Commerce and Industry (VCCI) said that businesses feel that production and business have not really escaped the bottom zone.

Most businesses predict that the economy has not yet escaped the bottom.

For businesses listed on the stock exchange, defensive psychology is also at a high level.

The economy is still at the bottom and it will take another 2-3 years to fully recover, which means 2014 is still difficult.

Mr. Quach Manh Hao – Member of the Board of Directors of MBS Securities Company

PVC production output will decrease by more than 60%, investment value will decrease sharply from more than 3,000 billion VND to nearly 480 billion VND, in 2014 alone it will be about 60 billion VND, only half of the average level.

In the agricultural sector, HAI Agrochemical Joint Stock Company (Stock code: HAI) said that in the 2014 fiscal year (from October 1, 2013 – September 30, 2014) it only set a target of 850 billion VND in revenue and

The construction and real estate sector also could not escape the spiral of economic decline as the targets in 2014 were also more conservative.

Enterprises are cautious with their 2014 business plans

Enterprises remained highly defensive in 2014. Photo: Hoang Ha

The fact that businesses will be more cautious next year has also been signaled before, when near the end of the year many units have to urgently adjust their plans to hope to complete their targets.

With only half a month left until the end of the year, the Board of Directors of Tay Ninh Rubber Joint Stock Company (Stock code: TRC) asked shareholders to reduce the after-tax profit plan by a quarter, from nearly 257 billion VND to 197.5 billion VND.

The above moves show that businesses are `not very confident` about the market’s recovery or are not sure about the possibility of `bottoming out` of the Vietnamese economy.

For example, from 2011 until now, the Government has directed interest rates to be reduced so that businesses can borrow capital, but up to now many businesses still cannot access bank credit.

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