The e-magazine “Doanh nhan Vietnam” (Vietnam Entrepreneur) held a forum in Hanoi on July 23 to discuss business restructuring amid challenges caused by COVID-19.

The forum looked into competitiveness and business models in face of challenges caused by the pandemic, orientations for enterprises to overcome the crisis and suggested ways to improve their managerial capacity and productivity.

Director of the Institute for Brand and Competitiveness Strategy Dr. Vo Tri Thanh said among 126,000 surveyed enterprises, 86% of them said they have been considerably hit by COVID-19.

He added that the Government offered a VND62 trillion (US$2.69 billion) social welfare package, directed reducing interest rates, extending the deadline for payments of debts, taxes and land lease.

In order to boost public investment, the Government has taken measures to speed up the disbursement of unspent capital in 2019 and planned capital in 2020 which amounts to VND700 trillion, Thanh said, adding that the progress, however, remains slow.

Economist Dr. Can Van Luc, for his part, said the COVID-19 pandemic pulled down the six-month gross domestic product (GDP) to a 10-year low. The number of firms that suspended operations rose by 38.2%, more than doubling that of the same period last year.

Pointing out new business trends during and after the pandemic, he said investors have paid attention to safer assets like gold. At the same time, more firms joined merger and acquisition deals, amounting to 54%, equivalent to that before the pandemic.

Restructuring of supply chains and technological application to change working methods are also new trends.

According to a Nielsen survey, 63% of Vietnamese respondents said they will go shopping online more frequently after the pandemic while 86% are satisfied with the use of digital channels.

Thanh proposed that the Government should continue allowing the extension of tax and fee payments, as well as consider issuing new economic stimulus packages for next year.

He also advised firms to seek business opportunities, stay creative to offer new products amid the fourth industrial revolution, and improve branding and the sense of social responsibility.