Businesses in need of support to thrive after pandemic

Experts told The Hanoi Times of the measures required to support local businesses facing growing pressure from a volatile economic environment.

Banking expert Nguyen Tri Hieu:

Ensuring capital access for businesses

The Vietnamese Government should further harness domestic and foreign investment capital to aid the ongoing socio-economic recovery process.
In the immediate future, Vietnam must ensure the effective implementation of stimulus packages, especially the social recovery program worth VND347 trillion (US$14.5 billion) to support businesses and people affected by the Covid-19 pandemic.
Such a program would help relieve operational expenses for businesses and households by waiving and extending the compliance due dates of taxes and land rental fees, and restructuring debt payment schedules, among others.
Banks are also encouraged to grant customers preferential loans at below-market interest rates to avoid capital shortages and ensure a quick recovery in the post-pandemic period.

Dinh Trong Thinh, lecturer at the Academy of Finance:

Improving the resilience of supply chains

Currently, most businesses are facing a shortage of input materials for production, mainly due to the negative impacts of the Russia-Ukraine conflict.
In this context, global economic growth is forecast to slow down, and countries worldwide face rising inflationary pressure. This, in turn, could lead to hikes in the prices of essential commodities.
To address difficulties for businesses and the people, the Government and ministries, especially the Ministry of Industry and Trade (MoIT), should work closely with the networks of trade missions and Vietnamese embassies abroad to support local businesses in securing the supplies of input materials.
The Government should also consider lowering logistics costs and expenses related to business trading activities.
Amid rising petrol prices, the MoIT is expected to cooperate with other agencies, including the Ministry of Finance, to cut taxes related to petrol products, along with other measures to keep social welfare intact.

Chairman of the Vietnam Chamber of Commerce and Industry (VCCI) Pham Tan Cong:

There continue to be overlapping laws and regulations that hinder business operations. To further improve the business environment and support business recovery for the remainder of the year, VCCI called on the Government and the National Assembly to focus on refining the legal framework for business and investment activities, in particular, a number of draft laws are in the discussion process, such as the Land Law, Procurement Law, Housing Law, and Real Estate Transaction Law, as such the drafting process would ensure transparency and take into consideration opinions from the business community for effective implementation later on.

Priority should also be given to promote efficiency in the implementation  of the socio-economic recovery programs in the post-pandemic period, given the current slow disbursement progress.

Many businesses are still voicing their concern over the lack of access to preferential loans, especially those of small and micro size. The Government needs to address such difficulties to make sure the supporting programs are truly effective.

Vice Chairman of the Hanoi Supporting Industries Business Association (HANSIBA) Nguyen Van:

Strengthen linkage between multinationals and local businesses

The business community looks forward to the development of the local supporting industry, for which we suggest the the Supporting Industries Law should be approved as soon as possible.

The Government should also set up a Steering Committee headed by a deputy prime minister and representatives from ministries, localities, and business associations, to timely address difficulties from companies in the supporting industries.

I expect a clear strategy and agenda to promote the development of companies in the sector, so that by 2025 their number can account for 5-10% of all operational companies.

Meanwhile, the linkage between multinationals and local companies is also of great significance for the latter to further integrate into the global value chains and enhance their competitiveness.

Economist Nguyen Minh Phong:

Focusing on domestic market

The government should boost domestic consumption and the expansion of new supply chains; develop e-commerce; logistics infrastructure and strengthen connectivity between different sectors; support services and business activities.

As global economic activities are returning to normal after the Covid-19 period, it is essential for the Government to support businesses to overcome technical barriers and promote trade; provide measures for businesses to mitigate the impact of rising prices of strategic commodities, especially electricity and petroleum products.