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Update news economic recession
2020 will be a tough year for Vietnam’s businesses
Some scholars, who believe the celebration of both solar and lunar new years is unnecessary as it causes a waste of resources, have suggested merging the two celebrations.
VietNamNet Bridge – Vietnamese landlords have to lower the rents and offer more preferences to retain foreigners – the VIP clients who never delay their payment – in the context of oversupply.
A lot bosses have become hired workers in the economic crisis, many businessmen have become penniless, and many millionaires have returned to their home villages to work on the rice fields.
Only spending money on very necessary and highly effective campaigns and using online ads instead of other traditional methods -- businesses have been trying every possible way to save every dong in the current difficult period.
Sharing the same business premises with others, relocating the offices to the suburbs, laying off workers and cutting down all possible expenses are the things most businessmen are doing to save every dong to survive the current difficult period.
Under the draft VAT law, more products would be subject to the 5 percent tax instead of the current rate of 10 percent.
It would be better to reduce tax and collect tax sufficiently, than setting up high tax rates which prompt businesses to evade tax.
The appointment of foreigners into the key posts at Vietnamese businesses has always been the “hot news” for the public. However, foreign CEOs do not always bring the things businesses expect.
VietNamNet Bridge – The price increases scheduled for public services and essential goods are believed to trigger new price increase waves.
The central region receives a lot of travelers, but they don’t spend much money during the stay there.
A lot of venture investment funds have been set up in Vietnam. However, due to many reasons, the venture funds still cannot make adventurous investments as per their nature.
Running out of money, business plans get stuck because of lacking capital, businesses have to sell vacancies on billboards to “keep mouth and soul together.”
A lot of the well-known names, who were considered the big sharks in the business circle, have become miserable with the big debts on their shoulders.
In 2012, the maximum credit growth rate was decided by the State Bank which granted “quota” to every commercial bank. Will the quota scheme be applied in 2013?
The demand for virtual offices has become so increasing high that 20 investors have developed this kind of service in HCM City alone.
Foreign consultancy firms all believe that the real estate market would still be very difficult in 2013, while the prices would continue decreasing.
VietNamNet Bridge – In previous years, young people tended to start up their own business after finishing school. However, the big difficulties in the economic crisis have made them shrink back.
VietNamNet Bridge – The government plans to pump huge amounts of capital into circulation to rescue the real estate market and settle bad debts. Will this make the high inflation return?
VietNamNet Bridge – Vietnamese businesses, both state owned and non-state owned, suffered big difficulties in 2012.