The business confidence index (BCI) in Vietnam in the second quarter of 2011 stood at 88 points, a drop of 21 points against the previous quarter, according to the latest survey by WVB Vietnam Financial Intelligence Services (WVB FISL).

The figure posted the biggest fall since BCI was first introduced in Vietnam in 2008, the report said.

WVB FISL made the survey between May 18 and the beginning of July among 127 businesses in 11 key sectors in Vietnam, of whom 78 percent were small and medium-sized companies.

Most responded businesses showed a lack of confidence in the country's economic recovery in 2011, saying the government needs more time to implement policies on curbing inflation and stabilizing the macro economy, and restoring business confidence.

Of those companies, 38 percent said the overall economic outlook had improved compared a year ago, while 12 percent said it had worsened.

However, 53 percent of companies were confident in the economic recovery in the next 12 months, while 10 percent predicted a gloomy 2012.

Despite bleak predictions, 44 percent of businesses had plans to expand their work force, while 33 percent said they would invest more in fixed assets in the next 12 months.

About 45 percent of the enterprises said Vietnam's trade deficit would continue to rise, and 72 percent of them forecast the country's annual inflation in 2011 to reach 15-20 percent.

xinhuanet