According to a survey in the first half of 2016, businesses in agriculture, forestry and fisheries suffered big losses in profit compared to industry-construction and trade-service.
A VCCI survey has been presented by Dr Pham Thi Thu Hang, VCCI Secretary General, at the 4th meeting of VCCI Executive Committee held recently in Hanoi.
Ms Pham Thi Thu Hang disclosed that in an attempt to review business activities in the first half of 2016, VCCI has conducted a survey “Facts on Vietnam business activities”. The survey applied the same method as the study on “Business activities in processing and manufacturing industriesin the first 4 months of 2016” sponsored by General Statistics Office. Both studies have arrived at the same conclusion on business views.
“Business activities in the first half of 2016 have not been improved as that of the second half of last year. Profit per product continues to decline and affect business activities”, Ms Hang said.
The survey shows that in the first half of 2016, as many as 36,626 businesses ceased activities, equal to two thirds of newly registered businesses and marked an increase compared to the same period last year. It shows that businesses still face with numerous difficulties.
Over 90 per cent of businesses ceasing activities are small ones. They have more difficulties than medium and large enterprises. Profit per product declines in enterprises of all sizes but small businesses suffer the most. The turnover of small businesses is lower than that of medium and large enterprises. It is also true to the recruitment of workforce.
Ms Hang also disclosed that in the first half of 2016, the number of disintegrated businesses increased in all sectors especially in mining (251 enterprises, up by 286.2 per cent), recreation (209 enterprises, up 154.9 per cent), health and social service (33 enterprises, up 120 per cent).
Next to agriculture-forestry-fisheries sector with 120.8 per cent of business disintegration are science and technology, consultancy, designing, advertising and others (79.7 per cent), information and telecommunication (69.7 per cent). Real estate sector continues to be attractive in the first half of 2016 with percentage remains the level of the same period last year.
Though the forecast is more optimistic for businesses in the second half of 2016 it needs more support for businesses in the long run.
The government has issued Resolution 35/NQ-CP of May 16, 2016 on business development to 2020. Accordingly, by 2020, 1 million businesses will make considerable contribution to the economy. The target is quite feasible as households are oriented for business model.
At the current 4th session of VCCI Executive Committee, VCCI has developed Action Plan to implement Resolution 35 of the government. Consequently, VCCI will focus on such measures as administrative reform facilitating businesses, assisting business start-up and innovation, ensuring entrepreneurship and access to business opportunities and resources, cutting business cost, protecting legal right and interests of businesses, upgrading capacity of Vietnamese business associations.
Quynh Anh
Vietnamese
