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Grant Thornton International Business Report

Economic uncertainty puts pressure on mid-market businesses in Vietnam

The second story of the International Business Report (IBR) campaign, reporting results of Grant Thornton’s survey of the global mid-market, pointed out the difficulties experienced by mid-market firms, particularly in Vietnam.  

In the first 6 months of 2023, anxieties about economic risks remained among mid-market firms in Vietnam. According to IBR data, the proportion of firms in Vietnam citing economic uncertainty as a major constraint to business activities increased remarkably from 58% in the second half of 2022 to 72% in the first half of 2023. Meanwhile, the 2023 global average is 58%, decreasing from last year. In addition, 56% of surveyed businesses in Vietnam were under the high pressure in terms of financing compared to the global figure of 44%.  

One of the reasons resulting in companies in Vietnam feeling more threatened during the global economic downturn is the decline in demand. The shortage of orders in the first 6 months of 2023 had a significant impact on mid-market businesses in Vietnam, as 62% of surveyed firms considered this a major business challenge, up 12% from the previous data. Meanwhile, around the world, the proportion of companies citing the lack of orders as a major obstacle reduced by 5% to 48%. The raised anxiety of firms in Vietnam underlines the challenges facing its export-oriented economy. For many manufacturing enterprises in the country, international demand is an important source of consumption. Therefore, the slowdown of demand in Vietnam's main export markets such as the US, EU, and China put huge pressure on production and business management. 

To discover more about the report of mid-market businesses globally, access the story at: