Vietnamese small and medium sized enterprises (SMEs) expect the economy to remain stable or grow this year, with many planning to maintain or increase expenditure and recruitment, according to a survey by HSBC. “There is no doubt that 2009 will be a difficult year for many businesses. Vietnam and Asia as a whole have withstood many difficulties in the last decade, and SMEs are entrepreneurial and resilient,” HSBC’s global co-head of commercial banking, Margaret Leung, said.
Are these two statements out of sync? Perhaps businesses are dreaming while HSBC is more accurate. The Ho Chi Minh Stock Exchange (HOSE) was established in 2000 and operates the biggest securities market in Vietnam. On January 27th, a report from Hue said “Global economic gloom has taken the spending spirit out of Vietnam’s annual Tet festival, signaling a tough year ahead for the transitional economy.”
What will Vietnam do about it, and why do businesses and HSBC see it a different way?
The 2009 Grant Thornton International Business Report, which surveyed senior executives from more than 7,000 private Vietnam-based businesses, found optimism in the economy dropped to 31% in 2008, down from the 87% recorded in 2007. “This shows that people will be less likely to spend money,” Grant Thornton’s Vietnam spokesman Khuyen Bu said in e-mail correspondence.
It’s time to grab your dongs and watch the HOSE
To cushion the blow, the Communist Party announced a US$1 billion stimulus package aimed at reducing interest burdens, lowering import taxes and handing 200,000 Vietnamese dong (US$12) to each member of households earning less than $60 a month.
Know that you know the rest of the story, as Paul Harvey liked to say, perhaps you can tell me if real news from Vietnam and HSBC news from Vietnam look totally different.
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