(VOVWORLD) -In the first six months of this year, Vietnam's GDP increased 3.72% despite the national economy facing many difficulties. Although that’s low compared to previous years, a rise was recorded in every month in the second quarter. The Government, departments, sectors, and localities have been urged to work together to help enterprises restore production and trading.
 Vietnam’s GDP grew 3.72% in the first half of 2023. (Photo: Minh Hieu/Vietnam+) |
Tran Van Le, Director of the Phuong Linh Trading and Electrical Engineering Production Company, said Government solutions have given businesses confidence.
The Government’s Resolution on helping businesses recover and grow sustainably until 2025 offers many ways to reduce business costs and increase business access to short-term loans.
“Vietnam’s efforts to achieve the goal of having 1 million businesses by 2025 sends an important message during this difficult time,” said Le, adding, “It’s a lifebuoy for my business. All State policies have a good intent, but the question is how can they be implemented effectively.”
According to economist Dr. Nguyen Minh Phong, businesses face three big problems - cash flow, markets, and bank interest rates. Compliance cost is a barrier to the growth of enterprises.
 Economist Dr. Nguyen Minh Phong (Photo: Trung Hung) |
More than 40% of businesses still have to pay informal fees for administrative procedures. Appropriate steps need to be taken to address business concerns, according to Phong.
He called on ministries, sectors, and functional agencies to improve the business investment environment and develop specific policies to support businesses.
“In addition, the quality, capacity and efficiency of State management must be improved through the legal system, personnel sources, inspection and check mechanisms, and the fight against corruption. Communications, information dissemination, consensus building, and social security are needed,” said Phong.
Businesses’ access to financial support packages is affected by a number of factors, including legal procedures and borrower requirements. A closer coordination is needed to provide more open mechanisms for businesses.
At July 4 online conference with localities, the Government stressed the need to remove difficulties and immediately overcome stagnant production and business, restore traditional markets and search for new markets. It asked each ministry, sector, and locality to take the initiative in reviewing and taking steps to help enterprises and investors in a timely and effective manner.
Nguyen Viet Long, Deputy Director General of Ernst&Young Consulting Vietnam, said that businesses need to be helped in the application of digital technology, knowing what is standard, and accessing financial sources.
“It’s an eternal issue for small and medium-sized enterprises. I see the difficulties but, at the same time, there are many solutions. The important thing is knowing how to choose the right one,” Long noted.