Business confidence index drops 7 points

Hanoi (VNA) - Vietnam's business confidence index (BCI) fell seven points in the
fourth quarter of this year compared to the demarcation level of 100 points recorded
during the third quarter, according to a recent survey.

The survey was conducted by the WVB Vietnam Financial Intelligence Services (WVB
FISL) and the PetroVietnam Finance Investment and Consultancy Company (PVFC Invest),
who surveyed 256 Vietnamese businesses in 11 key industries between Nov. 13-27.

However, around 50 percent of those interviewed said they believed that the
country's economic prospects would improve in 2009. This confidence was backed up by
54 percent of businesses planning to keep their staffing levels unchanged, 36
percent who intend to increase their investment in fixed assets and 47 percent
expecting increases in profits in 2009.

The survey also revealed that 67 percent of businesses predict a 15-20 percent
inflation rate in December. Around 41 percent of those surveyed said they believed
that purchasing power would increase next year, while 28 percent expressed a
pessimistic view of the market next year.-Enditem