Confidence Slips Back but Businesses Think of Efficient Growth Initiatives

 

Vietnamese business confidence has slipped back 21 Index points to 122 since September, inverting the increase recorded between March and September 2011, according to the global Regus Business Confidence Index. Companies reporting revenue growth decreased, falling to 31 percent compared to 65 percent six months ago. Companies reporting profit growth also decreased to 39 percent from 59 percent. Mindful of the need to contain costs in the quest for sustainable growth businesses identify increasing flexible workspace, increasing cloud IT applications and sales through third parties as the most effective cost cutting measures for the coming months.

 

Also according to the Regus Business Confidence Index, Vietnamese firms identify difficult access to cost effective capital (57 percent) as the main reason for corporate distress during the downturn, followed by inflexible margins paid to resellers, distributors or introducers (52 percent).

 

Additionally, respondents identified reducing fixed office space (52 percent), increasing cloud IT applications (43 percent) and sales through third parties (38 percent) as the areas where companies could best make savings without damaging growth prospects.

 

Vietnamese firms report that more flexible workspace (43 percent), a wider distribution of customers (43 percent) and access to cost effective capital (43 percent) would make the greatest contribution to enhancing future business stability as a platform for growth.

 

Wiliam Willems, Regional Vice President of The Regus Group for Australia, New Zealand and South East Asia comments: “Although untouched by the significant setback reported by the Index in other global economies between March and September 2011, Vietnamese business confidence has now suffered a dip. In addition to this, the proportion of companies reporting revenue and profit growth has decreased compared to six months ago so it is not surprising that in order to grasp growth opportunities in a sustainable way, businesses are still looking to cut overheads without damaging their growth prospects.

 

“In particular, respondents identify reducing fixed office space as an area where businesses may focus their cost-cutting efforts successfully. Respondents further confirm their outlook on flexible working practices declaring that using more flexible workspace can improve business stability as a platform for future growth. With solutions readily available on the market for flexible workspace arrangements there is no doubt that the number of businesses benefiting from more nimble and scalable arrangements will increase in the coming years.”