Vietnamese Entrepreneurs: Resolved to Surmount Challenges

According to VCCI President Vu Tien Loc, Vietnamese business community is facing numerous difficulties. By September 20, only 471,000 out of 675,000 enterprises continue operating. In 2012, there are 51,000 newly established enterprises but 40,000 others stop business activities. The facts show that the number of bankrupted companies is approaching the number of new ones.

 

In addition, under the pressure of the economy, actual operating businesses are meeting with increasing losses and inefficiency. Those with good management, economic potentials and competitiveness also suffer from bankruptcy of others, bad debts and market slow down.

 

Although Vietnam has advocated support policy for businesses, the implementation remains limited and spread out in all areas and scales. For instance, the support was given to all small and medium sized enterprises (SMEs), and labour-intensive enterprises processing products of agriculture-forestry-aquaculture, garment, etc. Consequently, preferential treatment was applied equally to inefficient and opportunistic businesses. As a result, the support by the government is not fully effective, causing waste and inefficiency in certain areas and sectors, MrLoc added.

 

Referring to the views of business community, Mr Loc said that land rent remains a big problem. Though the government has decided to cut it by 50%, many businesses believe it still higher than the reality as the price fluctuates every year. Meanwhile enterprises must be based on stable prices; the fluctuation without the intervention of the government will lead to the close-down of enterprises.

 

Mr Tran Dinh Thien, Director of Vietnam Institute of Economics believes that information is primarily important to businesses. In addition, policy must be implemented with road map and scrupulous compliance to increase business confidence in the government leadership. Business community also needs the protection by the policy to avoid further difficulties for their business activities.

 

Ms Vo Thi Thanh, Chairperson of Management Board of Thuan Thao JSC (Phu Yen) said: “In the past two years, Vietnamese business community has been confronted with enormous difficulties. Each business has to find its own solution. The government should assist them especially in capital source and should help them out before it is too late.”

 

For her part, Ms Vu Kim Hanh, Director of Vietnam High Quality Products Club, believes that the biggest problem for businesses is capital source. Though the government has facilitated businesses in access to capital, the remaining problems are existing stocks of products and harsh competition in domestic market.

 

On the afternoon of October 13, a delegation of VCCI and 100 exemplary businesses paid respect to Bac Son Memorial of Martyrs (Hanoi) and met with President Truong Tan Sang.

 

At the meeting, President Truong Tan Sang listened to remarks and wishes of Vietnamese business community, and congratulated business community, associations, entrepreneurs, especially exemplary businesses for their great efforts in overcoming difficulties, continuing and expanding efficient business activities. The President also pointed out that the Party documents and resolutions have always highlighted the role of business community and entrepreneurs. The Party and State have acknowledged the fast development and contribution of Vietnam business community to socio-economic development, national security and defence, promotion of international economic cooperation, generation of jobs, improvement of social welfare, poverty reduction and enhancement of national unity. The President reaffirmed that the Party and State will continue to support business community in overcoming difficulties and business activities.

 

On behalf of the delegation, Mr Nguyen Canh Son, Director General of Eurowindow, expressed the hope that the State would assist businesses, especially in access to reasonable capital source and consumption of products such as reduction of indirect and added-value taxes in 2012 so that businesses can decrease prices, stimulate consumption and reduce existing stocks.