Recovery Efforts of the Business Community

​(News Portal – Dong Nai) - The government aims that by 2030, Vietnam will have at least 2 million enterprises, with the formation and development of many entrepreneurs leading strong economic groups with substantial potential and competitive strength in both domestic and international markets.

Production at The Linh Co., Ltd. 

​In the context of an economy still facing many fluctuations, the "health" of the business community is declining, with a large number of enterprises withdrawing from the market. Without reasonable support solutions, the goal of achieving an economic growth rate of 6-6.5% set for this year, and further, developing 2 million enterprises in the next five years will be very challenging.

Worry About Enterprises Withdrawing from the Market

At the 7th Session of the 15th National Assembly, during discussions on the results of the implementation of the socio-economic development plan and the state budget in 2023; the situation of implementing the socio-economic development plan and the state budget in the first months of 2024, many delegates expressed concern about the high rate of enterprises withdrawing from the market. Regarding this, Minister of Planning and Investment Nguyen Chi Dung stated that feedback from associations and enterprises indicated that despite some bright spots such as gradually recovering orders and increased exports, domestic enterprises still face many difficulties and obstacles. The main issues include slow recovery of orders, high cost pressures, especially international transportation costs, and sharp increases in raw material prices. Additionally, enterprises are struggling to access capital to maintain and expand production and business activities. Many regulations and sustainable business conditions, especially in major markets that enterprises must comply with; legal regulations, administrative procedures, business conditions, and law enforcement issues also pose significant pressures on enterprises today. Governor of the State Bank of Vietnam Nguyen Thi Hong noted that credit slowed in the early months of the year due to several reasons such as weak credit demand and difficulties in implementing policies. The demand and capital absorption capacity of the economy are facing challenges, with many borrowers unable to meet the conditions. The reduction in investment in production, business, and consumption has led to a corresponding decrease in credit demand from the public and enterprises. The banking sector is striving for system-wide credit growth to reach 5-6% by the end of the second quarter as per the Government's directive. What enterprises need now is not only to clear credit channels and mechanisms but also to have comprehensive solutions, from resolving issues in the real estate market, the stock market, promoting public investment, and stimulating consumption and investment...

Finding Solutions to Strengthen Enterprises

Concerned for the health of the business community amid economic fluctuations, National Assembly delegates proposed measures to strengthen enterprises.

Delegate Nguyen Huu Thong (Binh Thuan Provincial National Assembly Delegation) recommended that the government enhance trade promotion efforts, diversify export markets, and research policies to increase access to and absorption of capital for enterprises, especially newly established, small, and medium-sized enterprises. Effectively implement solutions to improve the business environment, especially by reducing administrative procedures, costs, and risks for enterprises, and resolving land-related issues to enable enterprises to quickly implement their projects.

According to Assoc. Prof. Dr. Tran Hoang Ngan (Ho Chi Minh City National Assembly Delegation), alongside policies from the government and the state, enterprises also need to be proactive in leveraging their strengths to overcome difficulties and develop sustainably. Enterprises need to pay attention to green transformation and digital transformation as these are inevitable global trends and the future of enterprises.