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Businesses adapt faster and more flexibly

09:36 | 24/05/2022

VCN - Talking to Customs News, Dr. Mac Quoc Anh , Director of the Institute of Economics and Business Development, Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises, said that businesses have quickly adapted to develop amid difficulties, but those that have survived need to be stimulated to recover, so support policies need to be more appropriate.

Adapting to the 'new normal', businesses 'getting better' Adapting to the 'new normal', businesses 'getting better'
Policy on tax and fee exemption and reduction effective support to people and businesses Policy on tax and fee exemption and reduction effective support to people and businesses
Businesses adapt faster and are more flexible Businesses adapt faster and are more flexible
Businesses adapt faster and more flexibly
Dr. Mac Quoc Anh , Director of the Institute of Economics and Business Development, Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises

How do you assess the recovery momentum of businesses in the first months of 2022?

- In 2021, many businesses struggled during the pandemic and had to narrow production, business, or suspended operations.

This year is different. The pandemic continues to pose risks, but the economy has reopened with practical support packages from the Government. Thanks to the active participation of local authorities and their own efforts, businesses have been more proactive. They found ways to adapt and managed to gradually recover.

Previously, many businesses had the habit of producing for backup, selling products to the market in season. Now it's different. Some units produce in moderation, others switch to other suitable business fields.

Additionally, to reduce costs, they have to arrange a moderate number of employees, promote digital transformation to sell online, pay online, work from home, and organize online meetings with partners. Many businesses have quickly adapted, flexibly restructured industries, and invested in technology to restructure products.

Thereby, enterprises still maintain production while minimizing costs, improving competitiveness, and exporting products to new markets.

It can be said that the more difficult the situation, the more entrepreneurs and businesses uphold the spirit of social responsibility, strongly promote the spirit of solidarity, and support each other to overcome challenges.

However, there are still many businesses leaving the market, in your opinion, what is the reason?

- Statistics showed that in the first quarter of 2022, an average of 17,100 businesses withdrew from the market every month. This is really unfortunate. However, many of them just temporarily quit their business to switch to other suitable industries. The pandemic and many difficulties are good conditions for businesses to "calm down" and restructure production. Moreover, in my opinion, entrepreneurs who have been in business will be passionate, they will not give up but will continue to find ways to build a career, create jobs, and contribute to society.

Enterprises are determined, but difficulties from the external economic context are still ongoing and unexpected. How will this affect businesses, sir?

- Many businesses have recovered, but there are still many units, especially small and medium ones, facing difficulties.

Aggregate demand fell sharply, causing orders, contracts, and output to also decrease. Meanwhile, input and transportation costs are increasing day by day, leading to a shortage of raw materials and input materials, and pushing up production costs. Many affected manufacturing and exporting enterprises had to delay or cancel orders.

Due to the impact of the pandemic, and political and trade conflicts globally, production and business activities should be directed to clear segments in the new period. Moreover, businesses need to strongly link to each other through associations and organizations to seek business opportunities, trade promotion, exchange of goods, and propose necessary policies. Businesses need to find ways to adapt and be more dynamic in difficulties. Simultaneously, there must be help from the management agencies. Businesses that are still able to survive in the market need to be stimulated to recover.

Could you tell me more about the support from the Government to remove difficulties for businesses?

- During the Covid-19 pandemic, the Government had a quick response, promptly supported businesses through solutions to facilitate production and business; goods circulation; debt restructuring; extension, postponement, exemption, and reduction of taxes, fees and charges; extension of time for land rent payment; and reduction of electricity bills, electricity unit prices. These policies have encouraged businesses, especially small and medium units.

For example, the policy of reducing value-added tax will stimulate investment and business, because input materials can also be directly reduced, increasing the competitiveness of enterprises.

Moreover, tax reduction is also considered as a lever to stimulate the consumption demand of the whole society, thereby creating more production opportunities and expanding markets for businesses.

However, through the association's survey, many supporting policies are useful, but there is a big gap between the guideline and reality. In my opinion, when promulgated, policies should be calculated in the long run, should not change much and must be put into practice effectively for businesses.

They should prioritize industries and fields that play a leading role so that they do not break the supply value chain such as food, light industry, and information technology. Additionally, the business community always wants the business environment to be improved in the direction of cutting unnecessary conditions, being more transparent, and saving time and costs for businesses.

Thank you, sir!

Resolution No. 54/NQ-CP dated April 12, 2022 promulgates the Government's action plan to implement the National Assembly's Resolution on the economic restructuring plan for the 2021-2025 period.

The resolution sets a target to reach about 1.5 million enterprises, of which there are about 60,000 to 70,000 medium and large units; the contribution of the private sector to GDP is about 55%; at least five to 10 national products can build international brands.

One of the tasks and solutions proposed by the Resolution is to develop the business force; promote connections between businesses of all economic sectors; and innovate and develop collectives and cooperatives.

By Huong Diu (recorded)/ Ha Thanh