Positive signs for business as recovery gets underway

The shift from a “Zero Covid” strategy to one of “safe and flexible adaptation to and effective control of the Covid-19 pandemic” under Resolution No. 128 on October 11 will help Vietnam achieve its goals of controlling the outbreaks and posting socio-economic development, according to economist Le Dang Doanh.

Newly-registered businesses rose 111.2 per cent in October compared to September, while capital rose 73.9 per cent. According to the Agency for Business Registration at the Ministry of Planning and Investment, in the first ten days following the issuance of Resolution No. 128 there were 3,753 new businesses registered, or 45.6 per cent of the total registered in October as a whole.

But a shadow still lingers over the business landscape, as the number of businesses closing down remains higher than those being registered. In the first ten months of the year, 93,716 new businesses were opened but 97,089 closed.

“The disparity between the number of newly-registered enterprises and those withdrawing from the market continues to reveal the difficulties the business sector is facing,” said a representative from the Agency for Business Registration. “This confirms the need for support packages and economic recovery programs to be accelerated,”

It is necessary to quickly implement recovery programs with a focus on social security, public investment, reform to the business environment, and a faster equitization process, among other matters, to free up resources and guarantee relief and recovery plans, said Dr. Can Van Luc, Director of the BIDV Training School.

The government and the National Assembly could consider passing a large-scale economic support package to promote rapid economic recovery, Mr. Le Anh Tuan, Deputy CIO and Head of Research at Dragon Capital, believes.