Policy implementation capacity needs improvement to support businesses

Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc talks about solutions to help businesses overcome difficulties caused by the COVID-19 pandemic.

Policy implementation capacity needs improvement to support businesses
Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc. — Photo qdnd.vn

The Vietnam Chamber of Commerce and Industry (VCCI) and the World Bank have recently announced a report on the impacts of the COVID-19 pandemic on Vietnamese businesses. What are key points of this report?

This report was built based on a survey of more than 10,000 businesses in 63 cities and provinces in 2020, providing specific perspectives on the impacts of the COVID-19 pandemic. The survey showed that the year 2020 was a year full of difficulties when nearly 90 per cent of surveyed firms were adversely affected by the pandemic with many consequences such as influencing firms' access to customers, imbalance of cash flow and interruption of supply chains. Many businesses had to reduce their workforce, stop operations or go bankrupt.

Small- and super small-size businesses and young businesses of less than three years old suffered the most. The pandemic seriously affected turnover of businesses in 2020. 65 per cent of private enterprises and 62 per cent of Foreign Direct Investment (FDI) businesses said their revenue dropped in comparison with 2019. Due to COVID-19, the year 2020 witnessed a record number of businesses withdrawing from the market, exceeding 100,000 firms.

However, the year 2020 also recorded the efforts of the business community in overcoming difficulties. Many businesses have changed their strategies, carried out restructuring, retrained human resources, paid more attention to the domestic market and diversifying the consumption market and supply sources. The digital transformation process has gradually been implemented.

These are valuable lessons and experience that the COVID-19 pandemic has offered Vietnamese businesses. 

How do you valuate the resilience of Vietnamese businesses in the current context?

In the serious medical crisis caused by the COVID-19 pandemic, businesses have suffered great losses and the resilience of the business community is facing limits. 

How have Government support packages helped businesses?

Businesses highly valued Government support packages, particularly fiscal policies such as relaxation or deferment of value added taxes, corporate income tax and land hiring fees. 

Seventy five per cent of businesses said Government support policies are helpful. 

In the current context, what support do businesses need?

 

If solutions about tax, fees and support relating to access to finance and credits are limited due to limited State budget, measures relating to administrative procedures are easier to implement and have been promoted in recent years but still need to be accelerated. And that is the basic foundation for the recovery and development of businesses.

But it needs to be noted that implementation is often the weakest step. I still say that the earlier policies are put into practice, the better it would support businesses. So it is necessary to give priority to improve the implementation capacity.

Relevant ministries, agencies and authorities of localities need to increase information dissemination about support policies to create conditions for businesses to get access to support packages. It requires specific, detailed and full guidance about implementation procedures and processes to make it simple and easy for businesses to implement.  

It also needs policies to create favourable conditions for private enterprises to help them stand firm and able to recover after the pandemic, particularly policies relating to innovation and qualified human resources training to be ready for a new competition. 

Businesses must change, so what do State management agencies need to do?

Relevant ministries and agencies need to study and give recommendations to the Government to issue support packages to help businesses recover and expand investment and operation for the new period of 2021-2025.

The COVID-19 pandemic is forecast to continue having adverse impacts across the globe and it could only be completely eliminated in the next four to five years. So in the future, it is essential to have long-term policies.

Finally, it needs to spread or multiple models that effectively cope with COVID-19. For ministries, agencies and localities, that is experience in effectively implementing support packages for businesses. For enterprise associations, that is the sharing of ways to cope with COVID-19 effectively from those firms that have existed and developed in the context of COVID-19, particularly lessons about choosing markets, partners, business relationship and about investing in building core internal driving force of businesses to increase their resilience to deal with shocks.  

VNS

Development of logistics industry needs outstanding mechanism, policy support

Development of logistics industry needs outstanding mechanism, policy support

HCM City has just approved and issued a project to develop the logistics industry in the city until 2025, with a vision to 2030 to develop logistics to become a key service industry of the city,

Another support package to accelerate business rebound

Another support package to accelerate business rebound

With the gradual recovery in the confidence of the business community in the first two months of the year, continued support for enterprises is needed to help them stay afloat and weather the storm.

 
 

Other News

.
Apple partner Pegatron injects additional US$101million into Vietnam
Apple partner Pegatron injects additional US$101million into Vietnam
BUSINESSicon  09/06/2021 

Taiwan has granted approval for a further investment of US$101 million by Pegatron Corp, a major manufacturing partner of Apple which operates in Vietnam.

FDI supports Vietnam climb the global value chain
FDI supports Vietnam climb the global value chain
BUSINESSicon  09/06/2021 

Vietnam has successfully transformed into a manufacturing-oriented economy,
supported by stronger global value chain (GVC) participation thanks to a rise in foreign direct investment (FDI), especially in the manufacturing industry.

Business stories May 31–June 6
Business stories May 31–June 6
FEATUREicon  09/06/2021 

People who are worth VND500 trillion are listed among the top 30 richest persons in the US and the top 17 in China, according to Forbes. In Vietnam, such a person would be at the top.

PM wants to reform tax regime to prevent real estate speculation
PM wants to reform tax regime to prevent real estate speculation
BUSINESSicon  09/06/2021 

Prime Minister Pham Minh Chinh has emphasized that the national housing strategy needs to include reasonable social housing development, and the tax regime on land speculators should be adjusted.

Billions of US dollars flow into Vietnam’s stock market despite Covid-19
Billions of US dollars flow into Vietnam’s stock market despite Covid-19
FEATUREicon  09/06/2021 

The stock market has been witnessing unprecedented cash inflow so far this year, even though the Covid-19 pandemic has become more complicated in Southeast Asia.

Expanding action to weed out pandemic
Expanding action to weed out pandemic
BUSINESSicon  08/06/2021 

The prime minister has ordered a series of sturdy actions to fight against COVID-19 and spur on local production, as people look to the government for protection with the spectre of the pandemic looming yet again.

After decade of struggle, HAGL posts loss and gradually 'sinks'
After decade of struggle, HAGL posts loss and gradually 'sinks'
BUSINESSicon  09/06/2021 

The Hoang Anh Gia Lai Group (HAGL) of Chairman Doan Nguyen Duc has gradually withdrawn from the fields of business Duc has been dedicated to for a decade. 

Vietnam a bright spot for foreign investors: experts
Vietnam a bright spot for foreign investors: experts
BUSINESSicon  08/06/2021 

Vietnam has been chosen among leading destinations in Southeast Asia by Japanese investors, Nakajima Takeo, Chief Representative of the Japan External Trade Organisation (JETRO) in Hanoi, has said.

FDI inflows remains spotlight of Vietnam's economy
FDI inflows remains spotlight of Vietnam's economy
BUSINESSicon  09/06/2021 

The government has set up an FDI task force to support multinationals and foreign businesses grasping investment opportunities in Vietnam.

Businesses need more effective support amid COVID-19
Businesses need more effective support amid COVID-19
BUSINESSicon  08/06/2021 

Like many countries, Vietnam may have to depend on vaccines to achieve herd immunity and be virus-free, but enterprises may not be able to wait. They are in dire need of help and are craving new momentum to return to a “real normal” situation.

Vietnam expects to see export growth in rising global demand
Vietnam expects to see export growth in rising global demand
BUSINESSicon  08/06/2021 

Global demand for goods is recovering and this is an opportunity for Vietnam to boost its exports of consumer and industrial products, according to the Ministry of Industry and Trade (MoIT).

Stock market an attractive investment channel for local players
Stock market an attractive investment channel for local players
BUSINESSicon  08/06/2021 

The stock market is still an attractive investment channel for investors in the near future. However, it also poses many challenges for regulators and market members, said experts.

Vietnam calls for initiatives to ensure efficient functioning of APEC supply chains
Vietnam calls for initiatives to ensure efficient functioning of APEC supply chains
VIETNAM & WORLDicon  07/06/2021 

Asia-Pacific Economic Cooperation (APEC) economies needs to continue promoting free and open trade and investment, undertake initiatives to ensure regional supply chains to function smoothly and efficiently,

Vietnam faces shortage of cold storage warehouses
Vietnam faces shortage of cold storage warehouses
FEATUREicon  09/06/2021 

The growing tendency of consumers shopping online globally has led to a sharp demand for cold storage warehouses, but investment in cold storage facilities remains modest.

Small tourism businesses struggle to adapt to COVID-19
Small tourism businesses struggle to adapt to COVID-19
BUSINESSicon  07/06/2021 

The fourth wave of COVID-19 infections in Vietnam has caused disruptions to most sectors once again as the country was preparing for the tourism season.

Drawing up plans to buttress recovery
Drawing up plans to buttress recovery
BUSINESSicon  07/06/2021 

The ongoing fight against the COVID-19 pandemic has led to huge demands for capital for Vietnam to support local production. 

Solar PV market under duress from dependence on imports
Solar PV market under duress from dependence on imports
BUSINESSicon  07/06/2021 

As one of the fastest-developing countries in solar thanks to the current feed-in tariff, Vietnam’s billion-dollar solar panel market is mostly dominated by foreign investors and depending on imports.

VN game industry can become big exporter: experts
VN game industry can become big exporter: experts
BUSINESSicon  07/06/2021 

Vietnam’s mobile game market has huge potential and games can become one of the country’s major exports, experts have said.

VIETNAM BUSINESS NEWS JUNE 8
VIETNAM BUSINESS NEWS JUNE 8
BUSINESSicon  08/06/2021 

Vingroup to produce Covid-19 vaccine

Trade with China: $20 billion in exports, $43 billion in imports
Trade with China: $20 billion in exports, $43 billion in imports
BUSINESSicon  08/06/2021 

Vietnam’s import and export activities in May were affected by the fourth Covid-19 wave, but they still increased generally.

 
 
 
Leave your comment on an article

OR QUICK LOGIN