Small businesses struggle to recover

3 min read

Dr. Nguyen Thi Tong, an expert in the leather and footwear industry shared at the conference of the Competition and Consumer Protection Department on April 8, said that small businesses are struggling to recover. Many manufacturing businesses are in a state of losses to keep orders and keep labor. In addition, the lack of containers is very serious and this problem has not been solved.

Sản xuất khẩu trang ở (Khu công nghiệp Tân Đô, huyện Đức Hoà, Long An.

Manufacture of masks in Tan Do industrial park, Duc Hoa district, Long An province.

The situation is similar for the members of the Association of High Quality Vietnamese Businesses. Ms. Vu Kim Hanh, Chairman of the Association, said that besides a number of large enterprises that still stand firm and develop, many small and medium enterprises are still facing many difficulties. These businesses are most worried about decreasing demand, changing customer behavior and market uncertainty.

“Many coal businesses tell me about the increased costs that revenue decreases. I just learned that the famous sewing business owner has invested a chain of robots for the sewing line but the epidemic has not sold. A few days ago, he was squeezed by the bank. This is a private enterprise doing domestic business, not exporting”, Ms. Hanh cited.

Ms. Nguyen Thi Tuyet Mai, Deputy Secretary General of the Vietnam Textile and Apparel Association (VITAS) also said that in the first quarter, the textile and garment industry exported $ 9 billion. This is good news but the industry is also facing tougher business conditions, when orders are small, delivery time is 30% shorter, FOB prices plummet while quality requirements, environmental legislation, labor and supply chain transparency increased again.

Draft “Research report on impact assessment of Covid-19 on some major industries of Vietnam, proposing policy recommendations and solutions for post-epidemic recovery and development” of the Department of Edge Competition and Consumer Protection has just announced that Covid-19 has made the investment capital of the entire society last year the lowest increase in the 2016-2020 period.

Last year, to support businesses, the Government implemented a new loan package, with a total limit of about 300,000 billion VND with preferential interest rates 1-2.5% more than normal credit; fiscal package (tax deferral, tax deferral, tax and fee reduction) with a total value of about VND 180,000 billion and social security package of VND 62,000 billion for more than 20 million workers and disadvantaged.

The report recommends that, in the post-epidemic recovery period, Vietnam should continue firmly with the dual goal of both responding to the epidemic and promoting economic development … Some specific solutions are mentioned as: early building a strategy for the development of the textile, garment, footwear and electronics industries to 2030, with an orientation to 2035; commodity import-export strategy for the period 2021-2030.

At the same time, it is necessary to strengthen international cooperation on e-commerce, promote proposals, recommendations, promote new technology application models in the region to support trade and develop cross-border e-commerce.

Continue to support businesses to export goods through cross-border e-commerce. Replication of models to support connecting domestic businesses with large e-commerce businesses such as Alibaba, Amazon, Ebay, developing Vietnamese brands on e-commerce, training human resources for e-commerce.

Contributing more about the incentives to support businesses to recover, Ms. Nguyen Thi Tuyet Mai said that the main women should carefully build a development strategy for the textile and garment industry, continue to negotiate FTAs ​​but need to consult and contribute. Contribution from the association more about the terms set out. Along with that, trade promotion programs need to continue to be maintained and organized for a longer time.

In addition, according to Ms. Nguyen Thi Tong, depending on the epidemic developments in Vietnam with export advantages, the government should negotiate the opening of routes to create favorable conditions for businesses to promote transactions.

Chairman of The Vietnam Association of High Quality Goods Enterprises Vu Kim Hanh said that, despite many difficulties, businesses should see the pandemic as an opportunity to rethink the business model, products, to carry out a real restructuring. “Businesses need to pay attention to digitalization and standardization. The harder the economy, the more demanding the world’s retailers are about standards,” Hanh said.

Source: ndh.vn – Translated by fintel.vn