Policies need to be timely and reasonable to stimulate demand in Vietnam

Domestic consumption will help the economy recover from the effects of the Covid-19 epidemic

A series of supply and demand connections have been carried out recently by businesses to stimulate domestic demand.

Policies need to be timely and reasonable to stimulate demand in Vietnam



Vu Thanh Son from Hapro said the link between distributors and manufacturers will help stabilize the market and allow consumers to buy goods with high quality and at reasonable prices.

Not only Vietnamese but FIEs have also taken measures to stimulate domestic demand.

Nguyen Thi Phuong, CEO of Central Retail, said that Big C supermarket chain has many more suppliers, which better satisfies the increasingly high demand for goods. The connection, according to Phuong, also gives opportunities to farm producers to supply goods to Big C.

The Ministry of Industry and Trade (MOIT) reported that the total goods and service retail turnover in June 2020 reached VND431 trillion, increasing by 6.2 percent over May and 5.3 percent over the same period last year. The figure was VND2,380 trillion in H1.

The economy is step by step returning to normal, but enterprises hit hard by Covid-19 are still facing difficulties.

The GSO’s (General Statistics Office) April survey on 126,500 businesses found that 91 percent of medium sized enterprises, 89.7 percent of small enterprises and 82 percent micro enterprises said they were seriously affected by the epidemic.

As many as 29,200 enterprises suspended their operation in H1, while 19,600 businesses were waiting for the dissolution procedures to be completed before leaving the market.

As many as 29,200 enterprises suspended their operation in H1, while 19,600 businesses were waiting for the dissolution procedures to be completed before leaving the market.

 

Meanwhile, over 7,400 enterprises completed procedures for dissolution and 22,400 were not found at the registered addresses, up by 34 percent.

The government has applied a series of measures to stop the economic decline and revitalize production and business. Not only enjoying 50 percent reductions in taxes and fees, tax and land rent payment extension like other enterprises, SMEs can also enjoy 30 percent corporate income tax reduction in 2020.

Pham Dinh Thuy from GSO said there have been no statistics about the impacts of the policies on enterprises’ operation, but he is sure that few SMEs can access the preferential credit packages.

Stimulating domestic demand is one of the major points of the Government’s Decree No 105 on the measures to stop the economic decline and help businesses recover production.

According to GSO, consumption grew by 7.04 percent in H1 compared with the same period last year, contributing 8.48 percentage points to the GDP growth. Of this, people’s consumption made up 7.75 percentage points, while the government’s consumption was 0.73 percentage point.

The asset accumulation contributed 4.26 percentage points, while the import-export gap decreased growth by 7.01 percentage points due to the trade deficit.

Kim Chi 

Economists warn of ‘psychological inflation’ in Vietnam

Economists warn of ‘psychological inflation’ in Vietnam

The high CPI increase in the first half of the year will challenge the regulation of goods and service prices in the remaining months of the year, experts say.

Businesses in HCM City's central business districts are idle as demand is weak

Businesses in HCM City's central business districts are idle as demand is weak

Many streetfront buildings in large cities that house shops that were busy in the past are idle because business activities have declined due to Covid-19.

 
 

Other News

.
Chubb Life Vietnam honored 'Top Insurance Workplaces 2020'
Chubb Life Vietnam honored 'Top Insurance Workplaces 2020'
BUSINESSicon  14/09/2020 

Insurance Business Asia, a world-renowned insurance publication, has just named Chubb Life Insurance Vietnam Company Limited (Chubb Life Vietnam) among the “Top Insurance Workplaces 2020” in Asia.

Warm welcome to eagles, not to tigers or snakes
Warm welcome to eagles, not to tigers or snakes
BUSINESSicon  13/09/2020 

The author of this article received a request to write about his contributions to policies on foreign direct investment (FDI) attraction.

How to attract high-quality foreign direct investment
How to attract high-quality foreign direct investment
BUSINESSicon  13/09/2020 

Industrialization requires high-quality foreign direct investment (FDI). Many issues must be addressed, including how to developed a skilled workforce.

Predicted consumer resets to shape Vietnam FMCG market: Nielsen
Predicted consumer resets to shape Vietnam FMCG market: Nielsen
BUSINESSicon  14/09/2020 

The news cycle related to Covid-19 transmission no longer influences trends on the FMCG market in Vietnam and Southeast Asia.

Lam Dong halts agricultural tourism projects
Lam Dong halts agricultural tourism projects
TRAVELicon  13/09/2020 

Despite keen interest from businesses to invest in agricultural tourism in the Central Highlands province of Lam Dong, the provincial government is not granting an approval to such projects for the time being.

Vingroup rejects rumour about selling stake in Vinmec and Vinschool
Vingroup rejects rumour about selling stake in Vinmec and Vinschool
BUSINESSicon  13/09/2020 

Vingroup rejects rumour about selling its stake in Vinmec and Vinschool, reiterating that these two systems play a crucial role in the group’s ecosystem.

Hotel rates down steeply as COVID-19 keeps away tourists
Hotel rates down steeply as COVID-19 keeps away tourists
BUSINESSicon  12/09/2020 

The hotel industry is facing arguably its greatest challenge as the impacts of COVID-19 keep away foreign visitors from the country.

MPI prepares new decree on SOE information disclosure
MPI prepares new decree on SOE information disclosure
BUSINESSicon  12/09/2020 

The Ministry of Planning and Industry (MPI) is developing a new decree to guide State-owned enterprises (SOEs) on disclosing information, aiming to...

Vietnam likely to gain export target for timber and wooden products this year: experts
Vietnam likely to gain export target for timber and wooden products this year: experts
BUSINESSicon  12/09/2020 

 Experts believe Viet Nam this year will reach its export target for timber and wooden products at US$12 billion, despite the impact of the COVID-19...

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 13
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 13
BUSINESSicon  13/09/2020 

Vietnam home to nearly 50,000 rooftop solar projects

Vietnam's energy sector a magnet for foreign investors
Vietnam's energy sector a magnet for foreign investors
BUSINESSicon  11/09/2020 

National electricity demand is expected to increase by 8.5 per cent a year until 2025 and 7 per cent until 2030, making Vietnam an attractive market for foreign energy investors.

Ministry asks for tightened management on condotels, officetels, shophouses
Ministry asks for tightened management on condotels, officetels, shophouses
BUSINESSicon  12/09/2020 

The Ministry of Construction has asked provincial and municipal people’s committees to tighten management on condotels, officetels, resort villas and shophouses 

Auto industry steers strategy towards wider supply chains
Auto industry steers strategy towards wider supply chains
BUSINESSicon  11/09/2020 

Vietnam’s automobile industry is transforming drastically but it still lacks scenarios to join the global supply chains after the COVID-19 pandemic.

VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 12
VIETNAM'S BUSINESS NEWS HEADLINES SEPTEMBER 12
BUSINESSicon  12/09/2020 

Vietnam recovery prospects brightest in Southeast Asia: ICAEW

Versatility letting retail grow anew
Versatility letting retail grow anew
BUSINESSicon  10/09/2020 

The local retail sector is set to maintain its encouraging growth towards the end of the year, with new drivers coming online.

Anxious carmakers hoping losses remain in rear mirror
Anxious carmakers hoping losses remain in rear mirror
BUSINESSicon  10/09/2020 

Despite efforts in converting part of their facilities to produce ventilators and face masks for fighting the coronavirus pandemic, global carmakers are still reporting losses 

Vietnam's current account forecast at 3.7% in 2020
Vietnam's current account forecast at 3.7% in 2020
BUSINESSicon  10/09/2020 

Vietnam’s current account surplus could narrow to 3.7 per cent in 2020 from 4.9 per cent last year due to the impacts of the COVID-19 pandemic, according to Fitch Solutions.

Trade plummets at HCM City’s wholesale markets after second COVID-19 outbreak
Trade plummets at HCM City’s wholesale markets after second COVID-19 outbreak
BUSINESSicon  10/09/2020 

Wholesale markets in HCM City are facing a serious crisis due to the second COVID-19 outbreak. 

Businesses race against the clock to issue bonds
Businesses race against the clock to issue bonds
BUSINESSicon  11/09/2020 

Large corporations are rushing to seek capital through bond issuances before a new regulation, with stricter requirements, takes effect.

VN farm produce prices plummet amid oversupply, impact of Covid-19
VN farm produce prices plummet amid oversupply, impact of Covid-19
BUSINESSicon  11/09/2020 

Booth avocado, the specialty of Dak Lak province, is now selling at VND10,000-20,000 per kilogram, and the price of passion fruit has also fallen dramatically.

 
 
 
Leave your comment on an article

OR QUICK LOGIN