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» The first ever Vietnam Business Confidence Index to be built by WVB FISL & PVFC Invest
Hanoi, 10 July 2008: Today, Vietnam WVB Financial Intelligence Services (WVB FISL) with PetroVietnam Finance Investment and Consultancy Company (PVFC Invest) signed a memorandum of understanding (MOU) on joint partnership to build the first ever Vietnam business confidence index (BCI).
The attractiveness of Vietnam economic growth among emerging markets in the world is unchallenged. Growing merchandise exports and increasing FDI into Vietnam reflects furthermore the great significance of the country for the entire global economy. Taking these facts into account, it is surprising that no regular business surveys tracking the direction of growth or changes in business cycle by looking for judgments on past, current and future economic growth. Therefore, WVB FISL and PVFC Invest cooperated to launch in the third quarter of 2008 the survey to bridge the gap. From the survey, an index called WVB PVFC Business Confidence Index (BCI) is generated. The survey will be conducted on quarterly basis.
“After careful consideration, we finally have the list of the survey participants. They are the country’s leading enterprises regarding branding, total assets, total revenue, and number of employees across various industries in Vietnam.” said Nguyen Van Xuyen, CEO of PVFC Invest. He added that “From the survey, all data is anonymously analyzed and an index called the Business Confidence Index (BCI) is generated. The index is calculated and measured by the statistical results of responses from all survey participants”.
CEO of WVB FISL, Philippe O. Piette, said, “Such kinds of surveys have been conducted regularly in many developed countries for the past years due to its obvious benefits. Therefore, we need this index in Vietnam because firstly, it will benefit the enterprises themselves. Both of foreign and local enterprise operating in Vietnam will have another information channel about the current economy and the business growth forecast in the short term future. Based on this information they can benchmark, plan their business and make other business decisions better”.
“Meanwhile, knowing the responses coming from the companies, relevant government authorities can arrive at sound economic policies including near term economic forecasting and policy making. Business and market analysts, asset managers, business consultants and investors who are interested in Vietnam market can also rely on up-to-date results of the index for their research, business or investment”, continued Philippe.
The index will have a demarcation level of 100 points, which indicates that a reading of 100 and above denotes expansionary situations, while any below 100 points reflect contraction tendencies. All survey participants will receive copies of survey report after the survey is finished.
Note to editors:
The survey is carried out every quarter covering a sample size of 300 to 750 firms across 10 manufacturing industries in Vietnam with the primary objective of seeking information and views on trends in output activities, business outlays on plant and equipment, production expectations and so forth. From the survey, all data is anonymously analyzed and an index called the Business Confidence Index (BCI) is generated. The index has a demarcation level of 100 points, which indicates that a reading of 100 and above denotes expansionary situations, while any below 100 points reflect contractionary tendencies.. It is also important to note that, in principle, the survey does not attempts to quantify trends but attempts, instead, to track the direction of growth.
The proposed WVB & PVFC Business Confidence Index will measure 06 subcomponents:
- Current economic conditions
- Expected economic conditions
- Expected change in employment
- Planned fix investment
- Expected revenue growth
- Expected profit growth
All component questions are scored as the percent giving favorable replies minus the percent for unfavorable plus 100. The BCI is the sum of the components calculated as a percentage of the level recorded in the first period of the survey. All response made will be anonymously analyzed (without knowing the specific names of respondents) to ensure the highest level of unbiased and general analysis.
About World’Vest Base:
Established in 1985 in Chicago, USA, World''Vest Base (WVB) has becomes the world’s leading global provider of financial fundamentals serving the research and analytic needs of thousands of top companies in the financial services, media and corporate markets. The WVB global database is the financial industry’s premier source of detailed and transparent financial statement data on public companies. The database universe spans over 50,000 public companies over 130 countries from Asia, Africa, Australia, Europe, Latin America and North America.
WVB Regional databases also cover hundreds of thousands of private companies in Thailand, Vietnam, Laos, Cambodia, Malaysia and Egypt. WVB also provides databases with Insider & Major Shareholders Transactions, specialized End-of-Day pricing for emerging markets and worldwide credit risk and business risk scoring.
Further information can be reached at the company’s official website: www.wvb.com
About PVFC Invest
PetroVietnam Finance Investment and Consultancy Company (PVFC Invest) is the subsidiary of PetroVietnam Finance Company (PVFC). Our main investment priority fields are oil and gas industry, energy, high-end tourism, real – estate, manufacturing... Besides, PVFC Invest’s professional consulting services includes: financial advisory, investment advisory, merge and acquisition. PVFC Invest is proud of 100 employees who obtain in-depth experience, full-understanding about financial market and management from working for domestic and international financial organizations or graduated from privilege universities in Viet Nam and abroad. At present, The Company has more than 500 customers spreading all over the country.
For further information, please visit website: www.pvfcinvest.vn
For media enquiries:
Mr. Dam Hoang Giang
+84 (4) 762 4811
For media enquiries:
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