2013 was a challenging year for many businesses. The General Statistics Office of Vietnam (GSO) reports more than 60,700 were forced to dissolve or stop operations, 12% more than a year earlier.
The latest VCCI survey reveals businesses are optimistic about the broader economy in 2014 but more circumspect regarding their own chances of recovery.
Excerpts from a VOV interview with Vu Tien Loc.
Reporter: How would you evaluate 2013 for businesses generally?Mr Loc: Despite a number of difficulties, more than 50,000 new businesses were established and more than 10,000 businesses which had encountered problems resumed operations. Admittedly, the number of dissolved and stalled businesses also rose. Such fluctuations are inevitable in the current context.
Most businesses remained stable, generated local employment, paid State taxes, embraced their social responsibility, and contributed to national growth.
They could be considered economic heroes, weathering the storm and emerging stronger than ever. But more challenges are expected ahead.
Reporter: GDP in 2013 is estimated at 5.42%, higher than 2012 but lower than set targets. Can it be blamed on domestic production’s sluggish recovery and the rise in business dissolutions?Mr Loc: 2013’s underwhelming GDP is due to many reasons, but business dissolutions and other challenges undoubtedly played their part. Some businesses struggled to access bank loans because of insufficient operational efficiency, and fiercer competition. Meanwhile, the Government’s support measures are still limited.
The Vietnamese business community hopes more support is on its way.
Reporter: Experts predict 2014 will abound with its own challenges. How can the Government support businesses?
Mr Loc: The Government should rapidly accelerate structural reforms and expand businesses’ access to the kinds of resources that will enable them to endure. Tax relief would be welcomed and additional trade promotion programmes could help them maintain production and branch out into new markets.
Government agencies and scientists need to assist businesses with upgrading their technology and thereby making their products and services more competitive.
Measures like these are very important to businesses, both in 2014 and further into the future.
Reporter: Thank you very much.
- Economic, trade and people-to-people exchanges key to Vietnam-China relations: Amb.
- Hanoi as hub of youth energy - the creative core of smart cities
- Singapore, Vietnam to share formulas for success in the new era
- Hanoi spearheads anti-waste measures to accelerate urban development
- The dark side of social media: Are we playing with fire?
- Hanoi's fight against illegal racing: short-term police crackdown, long-term education key