VCCI forecasts rising sales towards year-end

Friday, Jun 20, 2014 08:36

Noodles are produced at the Colusa - Miliket Foodstuff Joint Stock Company. A report has shown a sharp improvement in business conditions in the first half of this year. — VNA/VNS Photo Dinh Hue

HA NOI (Biz Hub) — Total sales for Vietnamese businesses are expected to rise in the second half of this year, the Viet Nam Chamber of Commerce and Industry (VCCI) has announced.

A report released by the VCCI on Wednesday in Ha Noi revealed that the first half of 2014 had seen a sharp improvement in business conditions compared with the second half of 2013, despite the impact of various challenges.

According to the report, average selling prices in the six-month period had slumped over the second half of 2013, indicating that enterprises have implemented measures to drop prices and increase discounts in order to boost sales.

It also noted that the most positive trend during the period was an increase in labour productivity. Firms have perceived that sustainable growth does not rely solely on capital but also on high labour productivity.

In addition, the index on the legal environment and macroeconomy was higher due to improvements in the quality of regulations and administrative procedures.

The report suggested that improved access to market information, technology and infrastructure, such as electricity, water and waste disposal, as well as increases in officers' capacity to effect change have contributed to the promising prospects evident in the second half of 2014.

However, businesses have raised concerns over the domestic market, production and costs.

The VCCI's report showed that in the first five months of the year, more than 21 per cent of businesses had reached their annual turnover target, 28 per cent of the total had reached 90 per cent of the set target, and 16 per cent had met 70 per cent of the annual target.

In terms of profits, 14 per cent of all businesses surveyed had achieved the whole year's target. However, 4 per cent of these enterprises had halted operations for an average period of a month and a half as they had not been able to establish a market for their products. This indicates that gaining a foothold in the market has posed the most significant challenge to Vietnamese businesses. —VNS

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