In 2023, Vietnamese businesses had double trouble – a decline in orders and a surge in costs. Despite maintaining the highest level of optimism in the region, the domestic business community has shifted to defensive strategy, with inflation being their biggest concern. Impact of inflation Lim Dyi Chang, head of Commercial Banking at UOB Vietnam, highlighted this issue during a press conference on the release of UOB’s 2024 Business Outlook Study on July 16. The report said the bank surveyed over 4,000 businesses across seven key markets in ASEAN and China, including 525 firms in Vietnam. The survey, conducted in December 2023 and January 2024, found that 88% of Vietnamese businesses remain optimistic about the current business environment, one of the highest levels of optimism in the region. However, these businesses also expressed the greatest concern about inflation compared to other markets. “This indicates that inflation has deeply penetrated daily business operations. Vietnamese businesses are highly optimistic, yet they are bracing for future challenges,” Lim said. The report found that nine out of 10 Vietnamese businesses were affected by high inflation in 2023. Specifically, 58% cited increased operating costs as the main culprit, followed by 57% citing the cost of […]