National Assembly Vice Chairman Nguyen Duc Hai and the National Assembly Delegation worked with VCCI.

On the afternoon of August 19, in Hanoi, Member of the Party Central Committee, Vice Chairman of the National Assembly Nguyen Duc Hai worked with VCCI on the operation situation of enterprises as well as the assessment of enterprises on the support of the Government, ministries and sectors after the Covid-19 pandemic.

The report on the operation of enterprises shows that, as of December 31, 2021, there are 857,551 operating enterprises 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.

Businesses face many difficulties after the impact of the epidemic.

Mr. Pham Tan Cong – the Chairman of VCCI 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. Business difficulties 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 applying 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 should have solutions to remove difficulties for businesses shortly.

Member of the Party Central Committee, Vice Chairman of the National Assembly Nguyen Duc Hai assessed that through the report, the number of enterprises withdrawing from the market was still increasing strongly (in the first 7 months of 2022, the total number of enterprises withdrawing from the market was 94.6 thousand enterprises, an increase of 18.7% over the same period last year; On average, 13.5 thousand businesses withdraw from the market every 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 current difficulties", said Vice Chairman of the National Assembly Nguyen Duc Hai.