(VOVworld) – 2012 was a year full of ups and downs for Vietnamese businesses. Snags in both domestic and global economies directly affected the production, sales, and growth of Vietnamese enterprises. But thanks to government support, many companies have gradually restored their production. …..
Against the difficulties of the economy, a lot of measures have been taken to support the business community. On top of inflation control and stabilization of the macro-economy, the Vietnamese government has cut interest rates, improved the banking system’s liquidity, and maintained the exchange rate. Despite these steps, many enterprises still face the challenges of high credit interest rates, limited access to loans, and bloated inventories. These things have led to many closures or temporary shut downs. Nearly one-third of 670,000 recently established enterprises closed last year. That was half of all closures for the past 20 years. The biggest current difficulty is finding capital for production and trading, according to Nguyen Huu Cat, a member of the Vietnam Small and Medium-sized Enterprises Association. Cat said ‘We should give priority to enterprises which can maintain production but are in debt. These companies account for two thirds of all SMEs. Once the issue is settled, it will boost economic growth. The selection should be based on market regulations.’
Ministries and provinces are asked to identify enterprises that need help in restoring or stabilizing production and mobilize the business community to work together to ride out this difficult period. Many companies with the capacity to analyze the macro-economy and predict the sector’s total demand have made appropriate adjustments to save themselves. Thuduc House Company is an example. With a business development strategy focused on sustainability, Thuduc House Company has switched to building apartments for middle income families. Le Chi Hieu, the company’s director general, said ‘Businessmen should have heart, wisdom, and courage. Heart to take care of the society, wisdom to select a good business strategy, and courage to confront obstacles and challenges toward international integration.’
A great number of enterprises have agreed to share their infrastructures to maintain production, and minimize production costs. Many have become aware of the need to outline long-term business strategies of developing material zones and combining processing and market orientations to lower risks. Meanwhile the government has adopted policies to revise the current growth model and restructure the economy. Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry, VCCI, said the Chamber, which links the business community with ministries and agencies at all levels, will make timely proposals to ensure policies in line with practical developments. Loc added 'VCCI should continue to echo the voice of businessmen, make timely proposals addressing difficulties, and offer solutions to the government to help the business community.’
In 2013, the government plans to continue its efforts to increase consumption, defer taxes for enterprises, remove obstacles in the real estate market, and reduce bad debt and inventories.