Launch of Business Confidence Assessment
Launch of Business Confidence Assessment
The business situation could be summed up with “still good but not quite as good as before,” according to a survey of 410 Lao and European enterprises from January to June this year.
The main results show a general slowdown compared to the second half of 2014. Despite this recent development, companies, especially the local ones, maintain a mostly optimistic outlook for the second half of 2015, according to the Business Confidence Assessment for the Lao PDR.
The launch of the Business Confidence Assessment took place yeste rday in Vientiane, bringing together about 35 participants from the Lao and international business community as well as embassies, consulates, bilateral and multilateral organisations.
According to the assessment, Laos' general economic situation is perceived as average by the majority of the surveyed companies with Lao companies having a more optimistic view than the European businesses.
Regarding their own business situation, the Lao and European respondents are less optimistic than they were in the second half of 2014. However, many firms maintain their high expectations fo r the near future.
Turnover has increased for more than half of the European companies but for only 38 percent of the Lao businesses. Optimism prevails for the next six months.
Profits increased for 36 percent of the Lao and for 43 percent of the European companies, and there is strong profit confidence for the second half of 2015.
The majority of the surveyed local companies have unchanged financial situations and companies expect positive developments for their financial situation in the second half of 2015.
In regard to investment, two third of the companies invested, but there was a declining tendency in investment over the last 18 months.
Almost half of the European companies increased their workforce, less than a quarter of the Lao companies did, while 10 percent of the Lao and 14 percent of the European companies reduced their staff numbers.
Companies are becoming more aware of the impact and importance of the upcoming Asean Economic Community (AEC) but they are still not very well prepared for the community.
Exports were expanding for 38 percent of the Lao companies and for 25 percent of the European firms while exports are flat for 39 percent of the Lao and for 63 percent of European companies.
The Business Confidence Assessment for the Lao PDR is jointly published by the Lao National Chamber of Commerc e and Industry (LNCCI) and the European Chamber of Commerce and Industry (ECCIL) in Laos and supported by the related programme of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).
The launch ceremony included welcoming remarks by Secretary General of LNCCI Ms Sengdaovone Bangonesengdeth and closing remarks by Executive Director of ECCIL Dr Ramon Bruesseler.
