Delegates at the report launching workshop in Hanoi on 12 March 2021 (Photo: Thu Trang)

The report was released in Hanoi on Friday by the Vietnam Chamber of Commerce and Industry (VCCI) and the World Bank in Vietnam. It surveyed more than 10,000 enterprises nationwide on their views of the pandemic’s impact on the economy, and the measures they took in response.

90% of businesses were seriously affected, it found, with many narrowing or suspending operations, or even going bankrupt.

The number of enterprises ceasing operations was a record high, in excess of 100,000.

But 2020 showed the strong resilience of the business community, increasing competitiveness across the national economy, VCCI Chairman Vu Tien Loc said at the launch ceremony.

“The pandemic provided valuable lessons that will help enterprises overcome the difficulties and remain in business. Many enterprises have actively adjusted their strategies, stepped up restructuring and worker training, and paid more attention to the domestic market, support industries, and supply chains. Digital transformation has gradually been implemented,” said Loc.

He attributed the achievements to the business community’s efforts and the state’s support, adding that “The business community has appreciated the Government’s support policies amid COVID-19, especially fiscal policies on deferring added value tax, income tax, land lease, and loosening credit loans.”

According to Loc, “The policy to offer loans without interest rate to pay employees’ salary is considered difficult to access, but businesses still appreciate its a necessity. 75% of respondents describe Government incentives as helpful.”   

The business community also proposed that ministries, agencies and localities pay greater attention to developing the domestic market and promoting the connection between domestic enterprises and consumers to form Vietnamese supply chains.

They also underscored the importance of stepping up administrative procedure reform and improving the efficiency of law enforcement to create a favorable business environment.