Vietnam’s inflation likely to surpass 10 percent

Thirty-two percent of European businesses in Vietnam predict that the country’s inflation rate may reach 6-8 percent in mid-2011 while 35 percent say the rate will exceed 10 percent by the end of the year.

This was the result of a survey on Vietnam's business climate conducted by the European Chamber of Commerce (EuroCham) in Vietnam in the first quarter of this year.

The survey showed that the trust and prospects for business operation of the European business community increased in comparison with the previous similar survey.

Seventy-three percent of businesses taking part in the survey said they focused their operations on the Vietnamese market and that their businesses are doing well in Vietnam. Many of them said they would increase their investment in the country in 2011.  Fifty-four percent of businesses are expected to increase their salary rates by 10 percent this year.

Alain Cany, Chairman of Eurocham, said the first quarterly survey on Vietnam’s business climate demonstrated that most businesses are optimistic about Vietnam's economic outlook in 2011, especially after the resolutions of the 11th National Party Congress were approved.

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