2023-06-25 12:16:00
Already hard hit by the COVID-19 epidemic, Vietnamese companies are suffering the repercussions of the global economic recession. To enable them to reinvest and recover, the Vietnamese government has put in place various support mechanisms.
>> Vietnamese and Japanese companies strengthen trade exchanges
>> A Vietnamese company expands its presence in the American market
>> Prospects for the development of green business in enterprises
Specific support for companies in the most affected sectors is imperative.
Photo : VNA/CVN
On the side of Vietnam’s trading partner countries, such as the European Union, the United States or Japan, the inflation rate tends to drop, but still remains at a high level. Consumers must therefore continue to tighten their belts, and demand is feeling the pinch. For lack of orders, many Vietnamese companies have to freeze their activities to reduce production and operating costs, noted economist Nguyên Dinh Cung, former director of the Party’s Economic Management Research Institute.
According to a survey conducted by the Association of Vietnamese Small and Medium Enterprises, 80% of companies in the country are in a difficult situation. Of these 80%, 95% are small or micro enterprises. They require urgent support from the government to deal with this bad patch, said economist Nguyên Minh Phong.
“Companies face three major challenges: access to capital, loan interest rates and outlets. They find themselves in an extremely difficult situation: loss of orders, fierce competition with other countries and blockage due to technical barriers… It is absolutely necessary to help them to penetrate new markets”, he declared.
Sustainable business development
A steel producer in the province of Long An (South). Photo: VNA/CVN
Over the past three particularly trying years, although the macroeconomics and the major balances have been maintained, companies have had to deal with hard knocks. Many lack the means to reinvest, while the main financial channels, such as public investment, bond and stock markets are blocked, noted Trân Dinh Thiên, former director of the Economic Institute of Vietnam. According to him, to allow businesses to restart, it is urgent to facilitate their access to loans at preferential rates.
Faced with this acute thirst for capital, the government has put in place numerous support mechanisms. On April 21, a decree on assistance and sustainable development measures for companies until 2025 was published. The executive asked to remove all legal barriers blocking financial resources, to reduce commercial costs and to increase the offers of credits at preferential rates.
The government will also work to rebuild supply chains, diversify export markets, open the domestic market, create more jobs and improve the quality of vocational training. Nguyên Quang Huân, vice-president of the Association of Private Sector Entrepreneurs, commented on the relevance of these actions.
“However, it is necessary to publish guides for the application of policies to promote their implementation at the local level. Otherwise, we risk losing effectiveness,” he recommended.
Apart from this decree, many measures are already in force. Both for value added tax and for corporate and income tax, the payment deadline has been extended. The government has also reduced the value added tax which is now 8%. Employers can benefit from a reduction of 2% on the interest rates of loans reserved for the construction of housing for workers…
According to economists, this treatment should allow our companies to quickly regain color.
VOV/VNA/CVN
1687696165
#support #schemes #companies #difficulty
