Lao, European firms cautiously optimistic about economy and business
Lao, European firms cautiously optimistic about economy and business
Both local and European firms are reasonably positive about the overall economy and general business situation of their enterprises, according to the Business Confidence Assessment for the Lao PDR.
In the assessment, 37 percent of Lao and 58 percent of European firms considered their business situation in the second half of 2014 as good, while more than half of the Lao and about one third of the European companies thought it was average.
European firms are more optimistic when compared to the previous six months.
In regards to the general economic situation, 38 percent of Lao companies assessed the overall situation of the country as good, 49 percent as average (21 percent and 58 percent respectively for European companies) which was an improvement in confidence compared to the result for the first half of 2014.
Business development was showing a positive trend among both local and European firms for the last six months of 2014.
Expectations were also optimistic for the first half of 2015, according to the assessment.
Most companies recorded an improvement in their turnover in the second half of 2014. Optimism prevails for the turnover situation in the next six months.
Profits on average increased in the second half of 2014.
The majority of both local and European companies were investing in their business, although a minor decrease since the first half of 2014 was noted.
A majority of firms planned to invest in their companies in the first half of 2015, but there was a notable difference between local and European companies.
While 71 percent of local companies were planning to invest, only 56 percent of the European firms intended to do so. These results are similar to the assessment conducted six months ago.
In regards to employment, 28 percent of the Lao and one third of the European companies saw a net increase of their staff numbers in the second half of 2014; 50 percent of local and 44 percent of the European firms were planning to employ more people in the future.
One quarter of the Lao firms and one third of the European companies have positive expectations for the Asean Economic Community, while a few remained sceptical (16 percent and 5 percent respectively). Most companies experienced positive developments with exports although expectations were not always met in reality.
Future export expectations were largely positive (70 percent of Lao firms expecting an increase and 38 percent among European firms).
The Business Confidence Assessment for the Lao PDR is jointly published by the Lao National Chamber of Commerce and Industry and the European Chamber of Commerce and Industry in Laos.
This survey was conducted in the second half of 2014 among 424 enterprises (385 Lao and 39 European firms) based in Laos.
Its purpose was to assess the overall economic situation and current business environment in Laos as well as the performance of the different business sectors.
In this way, the chambers could also make comparisons between the situation and performance of Lao and European firms.
