Chủ đề: businesses

In order to innovate the growth model and improve economic competitiveness it is necessary to increase the number of businesses. The economic restructuring plan in the 2021-2025 period targets 1.5 million businesses by 2025. To reach such goals, a specific agenda from the government and a smooth business environment are needed.

According to the General Department of Taxation, there are now more than 489,000 businesses using e-invoices, or 57.4 per cent of all businesses in operation. After the first phase is deployed in six cities and provinces, e-invoices will then be introduced from April in the remaining 57 cities and provinces in the second phase.

Gasoline prices have been continually rising and setting records for the past eight years and will likely continue to do so, creating difficulties for transport businesses and others. To remove the difficulties, the government must identify long-term solutions to limit the use of petroleum, reduce fossil fuel exploitation, and protect the environment.

Vietnam faced unprecedented challenges and limited resources in 2021, but with the involvement of the entire political system, led by the Communist Party of Vietnam, and the joint efforts, consensus, and support of individuals and the business community as well as international friends and partners, it posted remarkable results, Prime Minister Pham Minh Chinh told the annual Vietnam Business Forum.

A number of representatives from businesses spoke with VnEconomy about the type of support required to overcome the challenges in 2022 from the pandemic, for the country’s stronger development. Some suggested the government adopt suitable financial policies and assist enterprises in accessing capital, among other solutions, to support business operations.

Retailers believe in recovery and expect to see strong growth this year.

Businesses are optimistic and believe that 2022 will be a year of restoring production and business after a long period of restrictions.

A survey by QIMA Quality Control Services shows that 38 per cent of US businesses and 28 per cent of European businesses said they plan to find new suppliers in Vietnam. This represents a golden opportunity for local enterprises to boost investment and broadly and deeply take part in global supply chains.

The Covid-19 pandemic is expected to persist for a long period of time, and what businesses need is support in terms of material costs, simplifying procedures, shortening the time to resolve procedures, and facilitating production and business activities.

After hearing from 42 associations about the obstacles and difficulties businesses and investors are facing, the Ministry of Planning and Investment (MPI) said three are most pressing: lack of labor, lack of vaccines, and lack of capital.

The Ministry of Industry and Trade (MoIT) has launched a series of consultation programs providing information to Vietnamese localities, associations, and businesses on imports and exports. Over 2,000 agencies and businesses are expected to receive consultations on 21 import-export markets around the world.

Covid-19 has increased the risk of default for businesses mobilizing capital at high interest rates but without a clear or viable business plan. Many types of bonds issued in Vietnam lack a credit rating, and some are not backed by collateral or have a pay guarantee.

Though Vietnam’s economy is forecast to grow sharply in 2022 following Covid-19, many businesses remain concerned they will encounter difficulties from labor shortages and supply chain disruptions delaying recovery.

Support packages for businesses need to be sufficiently large and provided in a timely manner. The government also needs to help business secure greater access to capital from banks.

According to the Vietnam Chamber of Commerce and Industry (VCCI), it is necessary to improve the business environment and strongly reform administrative procedures to support businesses in the long term.

Many enterprises have been able to maintain stable operations based on their sustainable development strategies.

Loan interest rates fell continuously last year and in the first seven months of this year but are still quite high in the context of business stagnation due to Covid-19. The leader of one bank said it receives hundreds of applications for interest rate cuts every day, and some businesses want a further reduction of 5 per cent.

A snap survey by the Vietnam Trade Promotion Agency at the Ministry of Industry and Trade shows that Vietnamese businesses are still facing a range of difficulties and obstacles in regards to digital transformation. Businesses are still short of sufficient knowledge and awareness about the process and have limited human and financial resources, while business leaders lack commitment and perseverance.

Prime Minister Pham Minh Chinh chaired a government online conference on August 8, with the participation of 1,200 representatives from ministries, branches, localities, businesses, and business associations, to identify support measures, remove difficulties, and promote production and business during Covid-19. “The government accompanies, supports, and helps businesses, harmonizing the benefits and sharing the risks,” PM Chinh emphasized.

Covid-19 has become more serious in Vietnam and affected trade in goods. Businesses and workers alike are wary of future risks if the situation does not improve.