THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT

Transcription

1 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT

2 2 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT LEGAL NOTICE CPA Australia Ltd ( CPA Australia ) is one of the world s largest accounting bodies, representing more than 155,000 members of the financial, accounting and business profession in 118 countries. ISBN: For information about CPA Australia, visit our website cpaaustralia.com.au First published 2016 CPA Australia Ltd ACN Level 20, 28 Freshwater Place Southbank Vic 3006 Australia Copyright CPA Australia Ltd (ABN ) ( CPA Australia ), All rights reserved. CPA Australia owns all copyright in these materials or uses it under licence or applicable law. For permission to reproduce any material, a request in writing is to be made to the Legal Business Unit, CPA Australia Ltd, Level 20, 28 Freshwater Place, Southbank, Victoria 3006 Australia. DISCLAIMER CPA Australia has used reasonable care and skill in compiling the content of these materials. However, CPA Australia makes no warranty that the materials are accurate and up to date. These materials do not constitute the provision of professional advice whether legal or otherwise. Users should seek their own independent advice prior to relying on or entering into any commitment based on the materials. The materials are purely published for reference purposes alone. CPA Australia, their employees, agents and consultants exclude completely all liability to any person for loss or damage of any kind including but not limited to legal costs, indirect, special or consequential loss or damage (however caused, including by negligence) arising from or relating in any way to the materials and/or any use of the materials. Where any law prohibits the exclusion of such liability, then to the maximum extent permitted by law, CPA Australia s liability for breach of the warranty will, at CPA Australia s option, be limited to the supply of the materials again, or the payment of the cost of having them supplied again.

3 3 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT OVERVIEW CPA Australia Asia-Pacific Small Business Survey 2015 is the sixth in a series of annual reports measuring small business confidence, the drivers of confidence, technology uptake and access to finance by small businesses. The data is compared across the eight economies included in this survey and over time. In total, 2932 participants completed the survey, including 510 from Australia, 610 from Mainland China, 265 from Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310 from Vietnam. The online survey was conducted with a random sample of small business owners/managers between 24 September and 14 October The sample was obtained through panel providers. To qualify for the survey, participants were required to be an owner, a senior manager (defined as being a director, a principal, a CEO, a CFO, a senior manager or a managing director) or a qualified accountant of a business with fewer than 20 employees.

4 4 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT SUMMARY OF VIETNAM RESULTS Vietnam s small businesses are growing strongly and have a strong focus on digital technologies. CPA Australia s Asia-Pacific Small Business Survey reveals that Vietnam s small businesses have a strong focus on innovation, e-commerce, exporting, social media and improving business management. This focus is flowing through to business growth, with the number of small businesses from Vietnam that reported growing in the past 12 months at 89.0 per cent, a rise of 24.8 percentage points from the last survey. This strong growth sentiment is expected to continue in 2016, with 93.6 per cent expecting to grow in the next 12 months (well above the survey average of 70.7 per cent). In fact, small businesses in Vietnam are among the most confident in the region, with more small businesses in Vietnam reporting growing in the past 12 months than the survey average (68.2 per cent), China (77.4 per cent), Malaysia (69.0 per cent) and Singapore (58.7 per cent). With Vietnam s economy being impacted by a variety of factors, including slowing growth in China (which remains very strong, however), and weak recoveries in the economies of the US, Japan and the euro area, the increase in the number of small businesses that reported growing in the past 12 months shows the resilience of Vietnam s small business sector. Such resilience and their focus on innovation, e-commerce and improving business management should mean Vietnam s small businesses are well placed to take advantage of emerging opportunities such as strengthening US economy. This strong growth is translating through to the sector being a large creator of new jobs, with 48.1 per cent of Vietnam s small business respondents increasing employee numbers in the past 12 months. The survey results clearly demonstrate that there are good reasons to be confident in Vietnam s small business sector with Vietnam s small businesses being more likely than the survey average to expect to undertake innovation in the next 12 months through the definite introduction of a new product, service or process that is unique to Vietnam or the world (26.1 per cent of Vietnamese small businesses compared with the survey average of 22.0 per cent). Innovation is not the only focus for Vietnam s small businesses, which are also more likely than most to be: using social media for business purposes (96.5 per cent of Vietnam s small businesses compared with the survey average of 81.4 per cent) growing their e-commerce presence (33.5 per cent of Vietnam s small businesses expect to grow their e- commerce presence to a large extent in the next 12 months, just above the survey average of 32.2 per cent) generating revenue from online sales (85.1 per cent of Vietnam s small businesses earn at least some revenue from online sales compared with the survey average of 68.9 per cent) improving business management (41.0 per cent of Vietnam s small businesses reported that improved business management had had a major positive impact on their business in the past 12 months, the highest percentage of all markets surveyed). This strong focus on innovation, e-commerce and improving business management means that Vietnam s small businesses are in a good position to outcompete their less nimble and tech-savvy competitors and remain competitive against rivals from fast-growing neighbouring economies.

5 5 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT With the implementation of innovation policies such as the establishment of the National Agency for Technology Entrepreneurship and Commercialisation and the National Innovation Technology Fund, this should further inculcate a culture of innovation and entrepreneurship amongst Vietnam s small businesses. Such a culture is fundamental to Vietnam s future prosperity. With the survey results demonstrating that small businesses that are innovating are more likely to be growing and creating jobs, this is clearly the right policy approach. Vietnam s small businesses are not only growing strongly and creating jobs they are leading small businesses from many other nations in the region in preparing for the future. Other results from the survey: ASEAN Economic Community A large majority of Vietnam s small businesses (80.7 per cent) expect that the creation of the ASEAN Economic Community will have a positive impact on their business. Demographics Respondents from Vietnam were the most likely to be under 40 (79.7 per cent) with their business established for 10 years or less (80.7 per cent). There is a strong correlation between younger business owners and those businesses that expect to grow, sell online, use social media for business purposes, and innovate through the introduction of new products, processes or services. Access to finance Access to finance remained difficult for the vast majority of businesses that required external finance (only 29.7 per cent found access to finance easy or very easy, the worst reading of the markets surveyed). Despite difficult financing conditions, banks are by far the most important funding source for Vietnam s small businesses. Funding business growth remains the most important reason for accessing external finance.

6 6 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT MAJOR FINDINGS FOR VIETNAM Vietnam s small businesses, with their reasonably strong focus on innovation, are well placed to grow, create jobs and export in 2016 and beyond. With small businesses with an e-commerce presence being more likely to be growing and creating jobs, Vietnam s strong focus on e-commerce is a distinct competitive advantage for its businesses and the economy. With small businesses that expect to grow revenue from exporting being more likely to be growing and creating jobs, more Vietnamese small businesses should consider having a stronger focus on exporting. With the survey results showing a strong connection between social media use and business growth, the very strong uptake of social media by Vietnam s small businesses is a competitive advantage. Reflecting strong business conditions, two-thirds of Vietnam s small businesses plan to increase their headcount in Growth prospects for Vietnam s small businesses in 2016 are the best out of the markets surveyed. The ASEAN Economic Community expected to have a positive influence on small business across the ASEAN region.

7 7 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT KEY SURVEY FINDINGS FOR VIETNAM INNOVATION Vietnam s small businesses, with their reasonably strong focus on innovation 1, are well placed to grow, create jobs and export in 2016 and beyond. Small businesses that in the next 12 months will definitely introduce a new product, service or process that is new to their market or the world 2 Indonesia 45.8% China 31.6% Malaysia 29.0% Vietnam 26.1% Hong Kong 17.7% Singapore 15.2% New Zealand 6.8% Australia 5.1% 1 Innovation, for the purpose of the survey, is taken to be the introduction of a new product, service or process that is unique to a market or the world. 2 All data for China excludes Hong Kong, which is shown separately.

8 8 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT The relationship between innovation and jobs creation, business growth and exporting EMPLOYEE NUMBERS Percentage that expect to definitely introduce a product, service or process that is new to their market or the world Expecting to increase employee numbers in the next 12 months NOT expecting to increase employee numbers in the next 12 months BUSINESS GROWTH Expecting to grow their business in the next 12 months NOT expecting to grow their business in the next 12 months EXPORTING Expecting revenue from overseas sales to grow strongly in the next 12 months NOT expecting to grow their revenue from overseas sales in the next 12 months

9 9 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT With Vietnam s small businesses being more likely than the survey average to definitely expect to innovate in the next 12 months, small businesses from the nation are well placed to grow and outcompete their rivals from home and elsewhere. To maintain this advantage, more Vietnamese small businesses should be looking to innovate. With the survey results showing innovative businesses are significantly more likely to be growing, exporting and creating jobs, it is easy to see why Vietnam s government is focused on promoting innovation through policies such as the establishment of the National Agency for Technology Entrepreneurship and Commercialisation and the National Innovation Technology Fund. As a recent OECD paper on innovation stated, in the long run, it is difficult to imagine growth without innovation. The OECD estimates that innovation can contribute up to 50 per cent of economic growth depending on the country, the level of economic development and the phase of the economic cycle. 3 Such an estimate highlights why Vietnam s government is absolutely right to have innovation as an important policy focus. Businesses are also more likely to definitely expect to undertake innovation in the next 12 months through the introduction of a new product, service or process that is unique to their market or the world if they: have a business owner/manager aged under 40 have between 5 and 19 staff are in the banking, finance and insurance sector, or the manufacturing sector. KEY FINDING Vietnam s small businesses, with their reasonably strong focus on innovation, are well placed to grow, create jobs and export in 2016 and beyond. We suggest that those Vietnamese small businesses that are not innovating should consider making innovation a part of their business strategy. 3 OECD Innovation Strategy: An Agenda for Policy Action, OECD Publishing, Paris, 2015, p. 4

10 10 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT E-COMMERCE With small businesses with an e-commerce presence being more likely to be growing and creating jobs, Vietnam s strong focus on e-commerce is a distinct competitive advantage for its business and the economy. Small businesses that generated revenue from online sales by market 4 Indonesia China Vietnam Hong Kong Malaysia 80.4% 73.2% 93.8% 90.1% 85.1% Singapore 63.6% New Zealand Australia 33.0% 37.0% Small businesses that intend to grow their e-commerce presence to a large extent in the next 12 months by market 5 Indonesia 86.3% Hong Kong China Malaysia Vietnam 42.6% 36.4% 35.2% 33.5% Singapore 19.4% New Zealand Australia 9.6% 8.2% 4 All data for China excludes Hong Kong, which is shown separately. 5 All data for China excludes Hong Kong, which is shown separately.

11 11 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT The relationship between e-commerce and business growth, jobs creation and exporting BUSINESS GROWTH Percentage that expect to grow their e-commerce presence to a large extent Expecting to grow their business in the next 12 months NOT expecting to grow their business in the next 12 months EMPLOYEE NUMBERS Expecting to increase employee numbers in the next 12 months NOT expecting to increase employee numbers in the next 12 months EXPORTING Expecting revenue from overseas sales to grow strongly over the next 12 months NOT expecting to sell into overseas markets in the next 12 months

12 12 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT Small businesses from Vietnam are among the leaders in generating revenue from online sales. This advantage is likely to be maintained as a third of Vietnam s small businesses expect to grow their e-commerce presence strongly in the next 12 months. With the survey results showing that small businesses that are selling online and seeking to grow their e-commerce presence are significantly more likely to be growing and creating jobs, it is easy to see why many of Vietnam s small business have a strong focus on e-commerce. The focus on e-commerce should also assist Vietnam s small businesses reduce the impact that rent has on their business, as it could allow them to reduce the floor space they need, particularly in high rental locations. It could also allow them to better connect with customers, many of whom are becoming increasingly familiar with purchasing goods and services online. While online sales are not relevant for all businesses, when you combine the results that show a strong connection between e-commerce and growth, and growing digital penetration and literacy of customers, it suggests it would be wise for all businesses to investigate establishing and growing their e-commerce presence. Small businesses are also more likely to earn income from online sales where: they have between 5 and 19 staff the business has been established for less than 21 years the respondent is aged under 40 the business is in the manufacturing sector. KEY FINDING The strong focus by many of Vietnam s small businesses on e-commerce is a key competitive advantage for those businesses and the economy. It should also allow many of Vietnam s small businesses to better control rent costs and connect with customers.

13 13 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT SMALL BUSINESS AND EXPORTING With small businesses that expect to grow revenue from exporting being more likely to be growing and creating jobs, more Vietnamese small businesses should consider having a stronger focus on exporting. Small businesses expecting revenue from overseas sales to grow in the next 12 months by market 6 Indonesia 57.8% 24.2% China Vietnam Hong Kong 15.7% 19.7% 22.3% 46.1% 40.6% 32.8% Singapore Malaysia 17.7% 15.7% 15.7% 15.7% New Zealand Australia 7.1% 6.1% 16.4% 13.3% Grow strongly Grow a little 6 All data for China excludes Hong Kong, which is shown separately.

14 14 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT The relationship between exporting, and jobs creation and business growth EMPLOYEE NUMBERS Percentage that expect their revenue from exporting to grow strongly Expecting to increase employee numbers in the next 12 months NOT expecting to increase employee numbers in the next 12 months BUSINESS GROWTH Expecting to grow their business in the next 12 months NOT expecting to grow their business in the next 12 months Vietnam s small businesses are the third most likely of the markets surveyed to expect to grow their revenue from exporting in the next 12 months, and the third most likely to expect revenue from exports to grow strongly over the coming 12 months. Given the weak environment in a number of key export markets including the US, China, the euro area and Japan, this is a good result. With the survey results showing that small businesses that are exporting are more likely to be growing and creating jobs, this export focus is a competitive advantage for Vietnam s small businesses and the broader economy. However, the advantage could be greater if more businesses had a focus on growing revenue from exports strongly. While an export focus does come with risks, including foreign exchange risks and the potential for downturns in key markets, the advantages of exporting over focusing on the domestic market are significant. A focus on the domestic market limits growth potential and increases the business s risk exposure should the local economy slow. It also means that the business may be less exposed to competitive pressures, which the survey results show may have a negative impact on innovation and growth. Further, the business may be less exposed to new ideas from other markets, which may also negatively impact innovation.

15 15 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT With the survey results showing a strong link between increasing revenue from exporting and business growth and jobs creation, it is easy to see why governments across the region are taking action to support and encourage international trade with initiatives such as the Trans-Pacific Partnership and the creation of the ASEAN Economic Community. Small businesses are also more likely to expect strong growth in their earnings from overseas in the next 12 markets if: the business is in the manufacturing sector the business has between 5 and 19 employees the respondent is aged under 50 the business has been established for less than 21 years. KEY FINDING The focus of many of Vietnam s small businesses on exporting is a competitive advantage for them and the economy. With a strong connection between exporting and growth and jobs, more Vietnamese small businesses should consider a greater focus on exporting as part of their business strategy.

16 16 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT SOCIAL MEDIA With the survey results showing a strong connection between social media use and business growth, the very strong uptake of social media by Vietnam s small businesses is a competitive advantage. Small businesses that used social media in their business by market 7 China Vietnam Indonesia Hong Kong Malaysia 97.2% 96.5% 96.0% 93.2% 88.2% Singapore 79.6% New Zealand Australia 50.2% 56.5% With the survey results showing a connection between social media use for business purposes and business growth, the very strong uptake of social media amongst Vietnam s small businesses gives them a competitive advantage, particularly over businesses from Australia and New Zealand where the number of small businesses using social media is significantly lower. With customers being increasingly likely to seek to communicate and transact with businesses via social media, a robust social media presence should enhance a small business s ability to attract, retain and transact with customers. It could also enhance their brand reputation and assist them to grow their business. Those that use social media use it for a variety of purposes including communicating with existing customers, promoting their business to potential customers, and selling their products or services. Small businesses are significantly less likely to be using social media for business purposes where: the respondent is aged 50 or over the business has been established for over 20 years the business has four or fewer staff. KEY FINDING With small businesses using social media being more likely to grow, the large-scale adoption of social media by Vietnam s small businesses is a competitive advantage that should help generate future growth. 7 All data for China excludes Hong Kong, which is shown separately.

17 17 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT JOBS AND SMALL BUSINESSES Reflecting strong business conditions, two-thirds of Vietnam s small businesses plan to increase their headcount in Small businesses that plan to increase employee numbers in the next 12 months by market 8 Indonesia Vietnam 66.1% 71.2% China 55.2% Malaysia 46.8% Hong Kong Singapore 27.7% 32.8% New Zealand Australia 16.7% 19.9% Relationship between jobs creation and business growth, innovation, exporting and e-commerce BUSINESS GROWTH Percentage that expect to increase employee numbers in the next 12 months Expecting to grow in the coming 12 months NOT expecting to grow in the coming 12 months 8 All data for China excludes Hong Kong, which is shown separately.

18 18 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT INNOVATION Definitely expecting to introduce a new product, service or process unique to their country or the world NOT expecting to introduce a new product, service or process unique to their country or the world EXPORTING Expect to grow export revenue strongly NOT expecting to sell into overseas markets E-COMMERCE Expect to grow their e-commerce presence to a large extent NOT expecting to grow their e-commerce presence

19 19 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT The jump in the number of Vietnamese small businesses that are expecting their business to grow in 2016 from 2015 is flowing through to jobs, with 66.1 per cent of Vietnamese small businesses planning to increase employee numbers in the next 12 months. Other factors contributing to this healthy jobs projection include the strong focus on innovation, e-commerce and social media by many of Vietnam s small businesses. Over the next 12 months, businesses that expect to increase employee numbers are also significantly more likely to: intend to considerably increase their e-commerce presence strongly grow their revenue from overseas sales innovate through definitely introducing a new product, service or process. Small businesses are also more likely to expect to increase employee numbers over the next 12 months if: the business is in the manufacturing, accommodation or food services industry the business has between 5 and 19 staff the respondent is aged under 40. KEY FINDING A stronger focus on exporting and innovation by more small businesses in Vietnam should lead to more jobs being created.

20 20 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT BUSINESS AND ECONOMIC CONDITIONS Growth prospects for Vietnam s small businesses in 2016 are the highest of the markets surveyed Small businesses that grew over the past 12 months by market 9 Indonesia Vietnam China 57% 63% 70% 34% 8% 26% Malaysia Hong Kong Singapore 51% 49% 55% 9% 12% 14% New Zealand 41% 15% Australia 32% 13% Grown A Little Grown Strongly Small businesses that expect their business to grow in the coming 12 months, 2009 to 2015 by market 100% 90% 80% 70% 60% 50% 40% Vietnam Mainland China Singapore New Zealand Malaysia Indonesia Hong Kong Australia 30% All data for China excludes Hong Kong, which is shown separately.

21 21 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT Small businesses that expect their local economy to grow over the next 12 months, 2011 to 2015 by market 100% 90% 80% 70% 60% 50% 40% 30% Australia Hong Kong Indonesia Malaysia New Zealand Singapore Mainland China Vietnam 20% Small businesses from Vietnam are the most likely to expect their business to grow in the next 12 months, with over nine in ten (93.6 per cent) expecting to grow, a 14.8 percentage point increase from their forecast for 2015 and well above the survey average of 70.7 per cent. Small businesses in Vietnam were also the most likely to expect their local economy to grow, with nine in ten expecting Vietnam s economy to grow in the next 12 months, a 10.3 percentage point increase from their forecast for 2015 and well above the survey average of 61.1 per cent. Both of these forecasts demonstrate the resilience of Vietnam s small business sector in the face of a range of external pressures including China s slowing growth (although it remains very robust), uncertainty over US interest rates, and weaker than expected recoveries in the economies of the US, Japan and the euro area. Small businesses that expect to innovate, grow their e-commerce presence to a large extent and strongly grow revenue from exports are significantly more likely to expect their business to grow in the next 12 months. In addition, small businesses are more likely to expect to grow if: they have between 5 and 19 employees the respondent is aged under 50 the business reported growing in the past 12 months. Further, small businesses are more likely to expect their local economy to grow if: they have between 5 and 19 employees they are in the manufacturing, property or construction sector the respondent is aged under 40. KEY FINDING Confidence in Vietnam s small business sector in 2016 is the highest of the markets included in this survey.

22 22 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT ACCESSING FINANCE Access to finance remains relatively difficult for Vietnam s small businesses despite strong business conditions. Access to finance the percentage that experienced easy to very easy financing conditions in the previous 12 months Indonesia 60.6% Indonesia 56.3% China 59.3% New Zealand 53.7% Australia 54.3% Australia 48.1% New Zealand 50.0% China 33.4% Hong Kong 43.5% Malaysia 32.3% Singapore 34.1% Vietnam 32.0% Malaysia 31.8% Singapore 30.9% Vietnam 29.7% Hong Kong 29.9% Access to finance remained more likely to be difficult than easy for Vietnam s small businesses that sought external finance in the past 12 months, despite strong growth in the sector. Vietnam s small businesses expect accessing finance to become slightly more difficult in These relatively difficult financing conditions may have had some impact on the demand for finance by Vietnam s small businesses, with 85.8 per cent of small businesses requiring funds from an external source in the past 12 months, down from 94.8 per cent from the 2014 survey. However, Vietnam s small businesses remain significantly more likely to seek external finance than small businesses from Australia and New Zealand who experience significantly easier financing conditions. Despite difficult financing conditions, banks are by far the most popular source of finance for Vietnam s small businesses. The next most popular source were investors. Reflecting the very high level of business confidence, Vietnam s small businesses were the most likely of the markets surveyed to have sourced external finance to support business growth. Borrowing money to purchase a capital asset was the next most popular reason. 10 All data for China excludes Hong Kong, which is shown separately.

23 23 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT KEY FINDING Accessing finance remains relatively difficult for many of Vietnam s small businesses despite high levels of business and economic confidence.

24 24 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT SMALL BUSINESS AND THE ASEAN ECONOMIC COMMUNITY The ASEAN Economic Community expected to have a positive influence on small business across the ASEAN region. Expected impact of the creation of the ASEAN Economic Community on small businesses in Indonesia, Malaysia, Singapore and Vietnam 13.4% Very positive 50.0% Positive Small businesses in Indonesia, Malaysia, Singapore and Vietnam are most likely to expect the establishment of the ASEAN Economic Community (AEC) to have a positive impact on their business. Small businesses in Indonesia and Vietnam are especially positive about the AEC, while Singaporean small businesses were the most likely to believe it will have no impact or that it is too early to tell. Larger small businesses, manufacturing businesses and businesses that have been established for between five and ten years are the most likely to see the formation of the AEC as having a positive impact on their business. Businesses that are expecting strong growth in export revenue over the coming 12 months are also significantly more likely to state that the AEC will have a very positive impact on their business. Very few businesses think that the AEC will have a negative impact on their business, while some are still undecided. KEY FINDING The ASEAN Economic Community is a positive initiative for businesses across the ASEAN region and should improve business and economic performance for member nations.

25 25 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT APPENDICES VIETNAM DATA SNAPSHOT Business and economic growth Small businesses that expect their business to grow - Vietnam against survey average Vietnamese small businesses that expect their business to grow against small business growth expectations for Vietnam's economy 90% 90% 70% 70% 50% 50% 30% % Survey average Vietnam Expect local economy to grow Expect their business to grow 2015 Rank Rank survey average Businesses that grew in the last 12 months 89.0% 2/8 64.2% 3/8 68.2% Businesses that expect to grow in the next 12 months 93.6% 1/8 78.8% 2/8 70.7% Businesses that expect the local economy to grow in the next 12 months 90.0% 1/8 79.7% 2/8 61.1% Business activity over the past 12 months 2015 Rank Rank survey average Increased employee numbers 48.1% 2/8 51.2% 1/8 33.1% Improved business management had a major positive impact on their business 41.0% 1/8 N/A N/A 25.4% Increasing costs had a major negative impact on their business 57.1% 1/8 N/A N/A 39.0% Required funds from an external source 85.8% 2/8 94.8% 1/8 59.9% Found it easy or very easy to access external finance 29.7% 8/8 32.1% 6/8 47.6% Sought external funds for business growth 70.3% 1/8 64.0% 2/8 56.3%

26 26 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT Planned business activity over the next 12 months 2015 Rank Rank survey average Expect to increase employee numbers 66.1% 2/8 64.4% 2/8 41.8% Definitely expect to introduce a new product, service or process unique to their country or the world 26.1% 4/8 N/A N/A 22.0% Expect to grow their e-commerce presence to a large extent 33.5% 5/8 N/A N/A 32.2% Expect revenue from overseas markets to grow strongly 19.7% 3/8 N/A N/A 19.1% Expect to significantly increase spending on marketing and promotion 37.4% 2/8 N/A N/A 22.8% Expect to grow their investment in assets strongly 32.3% 2/8 N/A N/A 23.1% Definitely will seek external funds 47.1% 1/8 48.7% 2/8 29.2% Expect easy to very easy access to finance 32.9% 6/8 37.1% 4/8 43.3% Expect to seek external finance to fund growth 77.3% 1/8 68.6% 2/8 59.7% Social media and e-commerce 2015 Rank Rank survey average Earned revenue from online sales 85.1% 3/8 87.1% 3/8 68.9% Used social media for business purposes 96.5% 2/8 96.8% 2/8 81.4% ASEAN Economic Community 2015 Rank survey average Creation of the ASEAN Economic Community will have a positive impact on their business 80.0% 2/4 63.4% Demographics 2015 Rank Rank survey average Business is 10 years old or younger 80.7% 1/8 82.5% 1/8 65.6% Respondent is aged 39 or younger 79.7% 1/8 65.1% 3/8 53.3%

27 27 THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 VIETNAM REPORT ABOUT THE SURVEY The CPA Australia Asia-Pacific Small Business Survey 2015 is part of a longitudinal annual study of small business conducted by CPA Australia since This report presents a cross-market comparison between the eight markets surveyed and, where applicable, a comparison of results from 2009 onwards. The survey was conducted between 24 September and 14 October The mainland of China and Vietnam were included in the survey for the first time in Indonesia and New Zealand were included in The survey in the mainland of China was conducted in Beijing, Chongqing, Guangzhou and Shanghai. All data for China excludes Hong Kong, which is shown separately. Interview method In each market, the online survey was conducted amongst a random sample of small business owners/managers. The sample was obtained through online panel provider Research Now and their Asian panel partner ipanelonline. To qualify for the survey, participants were required to be an owner, a senior manager (defined as being a director, a principal, a CEO, a CFO, a senior manager or a managing director) or a qualified accountant of a business with fewer than 20 employees. Sample In total, 2932 participants completed the survey, including 510 from Australia, 610 from the mainland of China, 265 from Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310 from Vietnam. Of the 610 participants from the mainland of China, 155 were from Beijing, 152 were from Chongqing, 147 were from Guangzhou and 156 were from Shanghai. Questioning Questions on small business confidence, employment, social media, costs and access to finance were drawn from previous surveys. Some slight modifications to question wording were made to a number of those repeated questions. Questions on innovation, major influences on the business environment, e-commerce, spending on marketing and assets and exporting are new in this survey. Questionnaires in Australia, Singapore and New Zealand were administered in English. The Hong Kong questionnaire was administered in traditional Chinese, the questionnaire for Malaysia was administered in both English and Bahasa Malaysia, Indonesia s questionnaire was administered in Bahasa Indonesia, China s questionnaire was administered in simplified Chinese, and Vietnam s questionnaire was administered in Vietnamese. Rounding All percentage results shown in this report have been rounded.

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