More Assistance to Vietnam Enterprises

Particularly, the number of bankrupt enterprises has become directly proportional to the range of economy difficulties, which is easy to understand, however, over-exceeding number of bankrupt enterprises has become a main content in every discussion. Along with the world economy fluctuation trend, bankrupt enterprises are not considered to be a new attention. Regarding Japanese statistic figures, there are nearly 70 enterprises going bankrupt every day, so the rivalry of the third-world market is very great. But in Vietnam, even of being a new developing economy, the number of bankrupt enterprises is also very high.

 

In fact, it has been showing that since the beginning of the year, inflation is always unstable, so relating authorities have carried out some necessary solutions to manage and adjust the monetary market in Vietnam. Besides that, banking interests are always so high that many enterprises are not able to access loans. Meanwhile, most of small and medium-sized enterprises of Vietnam depend on bank loans to operate; so tightened credits have led to fasten financial resources of enterprises, and by many reasons of increasing input prices, market instabilities, inability to compete with foreign enterprises, capital shortage, many Vietnamese enterprises have no other way than going bankrupt, despite all their enormous efforts in establishing those businesses. Dr Nguyen Van Nam - Vice Director of Institution for Economic Research and Development stated that: “In any economy, while fighting against inflation, it has to adopt high interest rates. The higher the inflation rate becomes, the higher the interest rates will be. And high interest rates certainly cause many difficulties for enterprises”.

 

Furthermore, the two digit inflation rate only occurs in special situations of economy, or in countries with weak and long-lasting macro-economic policies. The longer the two digit inflation rate remains, the more heavily it comprehensively impacts the economy and pushes enterprises, especially small and medium-sized ones to go bankrupt.

 

Economy difficulties have forced enterprises to become more active and flexible to the economy for survives. Many manufacturing enterprises have been cutting down input costs, saving at the maximum production costs, adopting technologies to make reasonable prices of products.

 

In connection with that, the Government has also carried out firm and decisive orders, gaining belief of enterprises to make them be restored. Specifically, the Ministry of Finance has been considering submitting solutions to the Standing Government and report to Government on the next regular meeting in December. The solution of supporting enterprises in 2012 is about to extend, exempt and diminish taxes for some of enterprises. Moreover, planed operation for electricity, coals, petroleum prices, fundamental public services must be based on market mechanism, and financial conditions of enterprises have to become transparent and public.

 

As for investment issue, Minister of Agriculture and Rural development Cao Duc Phat informed that, five year investment of agriculture and rural areas (the period of 2011-2015) is twice as high as that in the earlier five year period.

 

Although not mentioning in detail the interest policy in 2012, Governor of State Bank of Vietnam (SBV) Nguyen Van Binh said that, strongly declined inflation since August is a basic premise to consider lowering interest rates in the banking system in following time.

 

The SBV along with other ministries and authorities are inspecting closely conditions, assessing the demand-supply relation, domestic and international producing situations in order to adjust timely interest rates, creating a more preferential condition for enterprises to access to banking loans.

 

According to Governor Nguyen Van Binh, in order to unfasten difficulties of enterprises, SBV is coordinating with other ministries and sectors to compile documents guiding enterprises as well as financial institutions about credit activities applied in the following year.

 

Accordingly, SBV will submit to the Government solutions which will extend or exempt loans of several objects facing with many difficulties recently. The last target is to ensure that banking loan resource will concentrate mainly on business and producing activities in 2012.