Identify challenges, quickly remove difficulties for businesses

Tue, 27 Sep 2022 14:09:00  |  Print  |  Email   Share:

On the afternoon of August 19, in Hanoi, Member of the Party Central Committee, Vice Chairman of the National Assembly Nguyen Duc Hai and the Vietnam Chamber Commerce and Industry (VCCI) discussed the operation situation of enterprises as well as the assessment of enterprises. enterprises in support of the Government, ministries and sectors after the Covid-19 pandemic.

VCCI Chairman Pham Tan Cong spoke at the meeting with Member of the Party Central Committee, Vice Chairman of the National Assembly Nguyen Duc Hai. (Photo: Nguyen Viet)

Participating in the delegation were Mr. Vu Hong Thanh, member of the Party Central Committee, Chairman of the Economic Committee of the National Assembly.

The report on the operation of Vietnamese enterprises by VCCI shows that, as of December 31, 2021, there are 857,551 enterprises operating in the whole country. This number is relatively far from the target of 1 million businesses operating by 2020 set out in Resolution 35/NQ-CP dated May 16, 2016 of the Government on supporting and developing businesses until 2020. In addition, the Vietnamese business community has just experienced a difficult 2021 due to the Covid-19 epidemic.

According to data from the General Statistics Office, the total number of enterprises entering and re-entering the market in 2021 is nearly 160,000 enterprises, down 10.7% compared to 2020.

The VCCI Provincial Competitiveness Index (PCI) survey in 2021 has more specifically reflected the impact of the Covid-19 epidemic on the business community. Specifically, up to 92% of enterprises (94% of domestic private enterprises and 86% of foreign-invested enterprises) reported being negatively affected by the Covid-19 epidemic (87%).

Most businesses in all sectors and localities have to cope with problems caused by the Covid-19 epidemic, such as difficulty in accessing customers (60%), labor shortage (53). %), cash flow imbalance (52%), supply chain disruption (52%)…

Along with the negative impacts caused by the Covid-19 epidemic, the PCI survey also shows that businesses are facing many difficulties in the process of production and business activities. Up to about 66% of businesses face a decline in revenue compared to 2020.

Chairman of VCCI Pham Tan Cong said that the top 5 difficulties businesses are facing, including: finding customers (69%), accessing capital (47%), market volatility (33%). %), looking for suitable personnel (28%) and looking for business partners (24%).

Micro, small and medium enterprises are still the group with a higher level of difficulty than large-scale enterprises. Difficulties in business along with the impact of the Covid-19 epidemic in 2021 have made domestic private enterprises more cautious when developing business plans.

In 2021, for the first time, nearly 17% of businesses reported planning to downsize or close their businesses. This is the highest level in VCCI's 17-year history of PCI.

According to PCI 2021 results, one of the difficulties that businesses reflect is accessing and expanding production and business premises.

The reason comes from the complexity of administrative procedures for land lease and transfer (42.5%), local land planning has not met the development needs of enterprises (39.3%), the provision of land data is not convenient and the locality "lack of clean land fund".

On the other hand, enterprises are also frustrated because of the slow ground clearance, the unfavorable provision of land information and data, and the longer processing of land records. The troubles related to land procedures are the reason why 53.8% of businesses have to delay or cancel their business plans.

Therefore, VCCI proposed that the Party, National Assembly and Government soon have solutions to remove difficulties for businesses.

Member of the Party Central Committee, Vice Chairman of the National Assembly Nguyen Duc Hai informed that in the coming time, the National Assembly will consider many important law projects that have a great impact on people and businesses such as the Land Law. Law on Bidding, Law on Price, Law on Real Estate Business, Law on Housing…

In order for the revised laws to meet the requirements of reality, the National Assembly's agencies need to get multi-dimensional information from many different people or organizations including the business community and entrepreneurs.

This is one of the most useful sources of practical information for both ministries and branches of the Government as well as agencies of the National Assembly. In addition, the National Assembly is also continuing to strengthen supervision of the implementation of laws and the issuance of guiding documents.

In addition, the policy of the National Assembly Standing Committee is to assign the Economic Committee to coordinate with the Central Economic Commission, the Ho Chi Minh National Academy of Politics, and the Vietnam Academy of Social Sciences to organize the Forum. Vietnam's Socio-Economics 2022 with the theme Strengthening the macroeconomic foundation, promoting recovery and sustainable development, focusing on how to promote policies to support businesses, to create motivation restore production, business and sustainable development.

Therefore, the Vice Chairman of the National Assembly suggested that VCCI should pay attention, make positive and valuable contributions to bring the voice of businesses to the National Assembly and the Government through the Forum.

According to Vice Chairman of the National Assembly Nguyen Duc Hai, the report shows that the number of businesses withdrawing from the market is still increasing strongly (in the first 7 months of 2022, the total number of enterprises withdrawing from the market is 94.6 thousand enterprises), an increase of 18.7% over the same period last year; on average, 13.5 thousand enterprises withdrew from the market a month).

“This is an issue that needs further attention, requiring both the State and businesses to change their approach to the problem, possibly including adjusting strategies and policies to minimize, overcome the problem and the existing difficulties", Mr. Hai affirmed.

Assessment of businesses as well as of VCCI on solutions implemented by the Government, ministries and sectors to support and overcome difficulties after the Covid-19 epidemic; at the same time, proposals and recommendations to the National Assembly, the Government, ministries and branches in the implementation of support solutions;

In addition to the above points, Mr. Nguyen Duc Hai expressed his expectation that VCCI would be very close to businesses to share and evaluate the development trend of business models based on innovation and creativity.

 

 

 

By: Translator: LeAnh-Bizic

Source: https://baoquocte.vn/nhan-dien-thach-thuc-som-thao-go-kho-khan-cho-doanh-nghiep-195003.html

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