The 2024 Payment Practices Barometer survey for Vietnam was conducted during Q3 2024, and findings should therefore be viewed with this in mind.

Key takeaways from the report for Vietnam  

Vietnamese companies struggle with mixed B2B payment behaviours

• Late payments currently affect 36% of all B2B invoices issued by companies in Vietnam, a slight increase compared to the previous year, with the agri-food sector most affected. Bad debts stand at an average 3% of all B2B invoices.  Nearly half of Vietnam businesses attribute late B2B payments to customer cash flow problems, while 36% say they are caused by administrative inefficiencies. It takes an average of one month beyond the due date to convert invoices into cash. 
   
• Various strategies are used to mitigate the risk of liquidity crunches stemming from late payments. These include delaying investment plans, delaying payments to suppliers, and resorting to bank credit. Improved debt collection efficiency has also boosted financial resilience by reducing large swings in Days Sales Outstanding (DSO).

Future profitability and insolvency risk worry Vietnam’s businesses

• Our survey finds more caution among companies in Vietnam about the outlook for both insolvency rates and future profitability. A significant number of businesses, notably in the agri-food and packaging industries, tell us they are pessimistic and anticipate a negative trend of insolvency risk during the
  year ahead.
   
• This caution is also evident in a number of short-term and long-term concerns expressed by companies in Vietnam. A major worry surrounds continuing global uncertainties that could spark supply chain disruptions and an unpredictable
  trading environment. Rising inflation and increasing labour costs are also significant anxieties, with the potential to erode profit margins and affect business sustainability.

The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers. 

Interested in finding out more?

For a complete overview of the 2024 survey results for Vietnam, please download the full report available in the related documents section below. The regional report for Asia is also available for download in the section below.

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