return icon

Should unprofitable businesses be saved or abandoned?

The Vietnam Chamber of Commerce and Industry (VCCI) has released a report showing that 70 percent of private businesses have not made profits for many months. 

VietNamNet Bridge - The Vietnam Chamber of Commerce and Industry (VCCI) has released a report showing that 70 percent of private businesses have not made profits for many months. 



The businesses make up 50 percent of the country’s GDP. At least 96 percent of them are small and very small businesses, while the remaining 4 percent are medium and large sized companies.

The survey by VCCI conducted in April 2015 showed that small and micro businesses still have revenue, but they have fewer jobs; therefore, their profits have decreased dramatically, which has forced them to cut their labor force. Nearly 32 percent of businesses have halted operations.

Nguyen Tien Dung, director of Thy Duy Packaging Company in HCM City, said the number of workers in his business had been cut by half due to a decrease in orders.

Three years ago, Thy Duy ran at full capacity with 20 workers. But now it has only seven workers, while only three out of its 5 printing production lines work at a moderate level.

Nguyen Van Tinh, director of Nguyen Van Tiep Company in Quang Nam province, a fine arts trader, complained that the number of orders has dropped by 30 percent as his products are less competitive with products of the same kind in the north.

Many businesses are trying to maintain business and make modest money to compensate laborers. 

Cu Van Thanh, director of Luong Van Quoi Company, a coconut processor in Ben Tre province, said the biggest problem for small businesses is the inability to access bank loans. 

The businesses do not have mortgaged assets to borrow commercial loans, and they do not have business performances good enough to borrow money without collateral.

Meanwhile, a survey of credit demand from small- and medium-sized enterprises conducted by the Central Institute of Economic Management (CIEM) found that 50 percent of businesses did not apply for loans because they had no demand. 

The figure showed that businesses do not intend to expand their production at this moment because of the low purchasing power.

Bui Kien Thanh, a renowned economist, commented that the limited capability and the small scale of the private economic sector was the biggest problem of Vietnam’s economy.

Businesses act as the backbone of the national economy. If they don’t intend to expand the production, then serious problems exist. 

“The number of private unprofitable businesses is on the rise despite the government’s efforts to develop the private sector,” he commented.



The legend of the walking monolith

Mother Elephant Rock Mountain (Voi Me Rock Mountain), also known as the biggest monolith in Vietnam, appears as a back of a giant elephant lying in the middle of the Central Highlands.

Vietnamese network operators now manufacturing cameras

Most cameras provided in the local market are foreign made.

Vietnam’s most modern library

Located at National Economics University, the most modern library in Vietnam covers around 10,000 square metres and is funded by the World Bank through the Support for Autonomous Higher Education Project.

China purchases more Vietnamese fruit for lunar new year holiday

Chinese demand for fruit for the lunar new year holiday accounts for up to 50 percent of Vietnam’s total fruit exports. Experts warn that the products may get stuck at border gates.

Press agencies need to become technological institutions: minister

Twenty years ago, editors-in-chief took pride in the fact that while printing machines were working, distributors were sitting eating bread and waiting for the first newspapers to be put out to deliver.


Vietnamese innovative startups should strive to become regional, international “unicorns”: PM

Seven more prosecuted in bribery case at foreign ministry

The investigation agency under the Ministry of Public Security has issued decisions to prosecute, arrest and search the residences and workplaces of seven more individuals for their involvement in a bribery case at the Ministry of Foreign Affairs.


President arrives in Seoul, beginning state visit to RoK

IFC plans to pour 320 million USD into three Vietnamese banks

The International Finance Corporation (IFC), a member of the World Bank Group, has proposed a total investment of 320 million USD in three Vietnamese banks, reported the Nikkei Asia.

Girl with brittle bone disease opens class for poor students

As she wasn't able to fulfil her dream of becoming a teacher due to congenital vitreous disease, Nguyen Thi Ngoc Tam opened a free class for poor students.

Miniature-human sculptures popular with customers

The price of a sculpture ranges from one to five million VND, depending on the difficulty of the model. Eight to 19 ordered products are made per day to guarantee progress as well as the quality of the sculpture for the customer.

Lacquer village outlasts centuries-old craft

Alongside a wide range of products made from natural materials such as wood, bamboo and rattan, the village also has created new gold- and silver-inlaid products made from ceramic, pottery, and composite.

Local firms do business in P2P lending market

P2P Lending has become a hot issue in Vietnam, especially with the participation of Chinese businesses.

Vietnam to hold first cat fish festival soon

Vietnam’s first cat fish festival is scheduled to take place in the southern province of Dong Thap on December 16-17.

Control of bad content on social networks should be tightened

Tik Toker No O No, who criticized the poor, was boycotted by the community and forced to shut down by the authorities. He is not the first Tik Toker that has posted bad content on social networks.