Eight groups of problems enterprises are facing

VCN - Prime Minister Pham Minh Chinh chaired an online conference between the Government and representatives from enterprises, business associations and localities nationwide on solutions to remove difficulties and promote production and business activities of enterprises in the context of the Covid-19 pandemic.

Speaking at the opening of the conference, Prime Minister Pham Minh Chinh said that, within the scope and authority, the Government and the Prime Minister have been researching and promulgating many proactive, creative, drastic and flexible solutions, mobilizing all resources to prevent and repel the pandemic and maintain production in safe and secure places. As a result, the socio-economy in the first seven months of the year still achieved many positive results.

According to Prime Minister Pham Minh Chinh, the current context requires great requirements and tasks for the Government, ministries and localities. We need to take drastic, timely and effective anti-pandemic measures to protect health and life, as well as stabilize the people's lives. At the same time, we need to maintain and restore production and business activities of enterprises, making our best efforts to not disrupt production and supply chains.

According to Minister of Planning and Investment Nguyen Chi Dung, through direct and indirect information exchange channels with the business community, we have identified eight groups of difficult problems that businesses are currently facing.

Firstly, aggregate demand dropped sharply, causing orders, contracts, and output to decrease. The average demand in the industries decreased by 40-50%, the heaviest was the aviation, passenger transport, tourism, restaurant and hotel industries as the demand was reduced by 70-80%.

The congestion of goods at some important seaports such as Cat Lai, Cai Mep - Thi Vai was due to the pandemic rather than infrastructure or traffic management.

Demand decreased, enterprises reduced output and production scale, so imported materials could not be put into production, so temporarily used port warehouses for enterprises.

Enterprises said that the conditions of some policies are still quite tight, making it difficult for the beneficiaries to support, not covering all situations arising in reality. Photo: H. Diu.
Enterprises said that the conditions of some policies are still quite tight, making it difficult for the beneficiaries to support, not covering all situations arising in reality. Photo: H. Diu.

Secondly, revenue fell sharply. In which, the tourism industry does not generate revenue; restaurants and hotels have been paralyzed since April 2021, the revenue of the aviation industry has decreased by an average of 61% compared to 2019, the peak pandemic in early 2021 decreased by 80% compared to the same period last year.

Thirdly, the cash flow is short, making it very difficult for enterprises to cover expenses to maintain production and business activities such as expenses for employees (salary payment, social insurance, health insurance, unemployment insurance). In addition, businesses still have to pay rent for premises, shops and factories while they have to suspend operations.

Due to a lack of cash flow, most businesses can hardly manage to pay interest on bank loans on time, leading to bad debts, overdue debts, and difficulty in accessing new loans.

Fourth, input costs and transportation costs are increasing day by day, leading to shortages of raw materials and input materials, making production costs rise. There is a serious shortage of empty containers, the rental price of containers increases by 5-10 times, the cost of logistics transportation increases from 2-4 times, sometimes up to 5 times compared to before the pandemic.

Many new expenses have arisen related to pandemic prevention and control such as: testing costs; spending on equipment investment to meet the conditions of disease safety control at enterprises.

Fifth, the supply chain of production, consumption and export is disrupted and stalled locally. Many affected manufacturing and exporting enterprises have to delay or cancel orders, if the outbreak lasts for a long time, they may lose the market because customers change the supply chain.

Sixth, goods circulation faced difficulties, including domestic circulation, among some provinces and cities due to unreasonable application of pandemic prevention and control policies. As a result, enterprises are delayed in delivery/import, storage costs and transportation charges increase, and production and business situation is stalled.

Seventh, difficulties in labor and experts: In order to withstand the pandemic, many enterprises have to downsize and reduce their workforce. This will make it very difficult for enterprises to find labor again when production is restored after the pandemic, especially for occupations that require certain skilled and specialized workers such as mechanics and electronics. Enterprises, especially FDI enterprises, face many difficulties with the issue of entry and work permits for foreign experts.

Eighth, difficulties in accessing support policies of the State. Enterprises said that the conditions of some policies are still quite tight, making it difficult for the beneficiaries to support, not covering all situations arising in reality, the enforcement work is sometimes not active and flexible.

According to Minister Nguyen Chi Dung, notable points in the recommendations of businesses is the simplification of procedures, ensuring transparency, clarity and consistency in the implementation of regulations and policies on pandemic prevention and control nationwide; fairness and attitude of serving side by side with enterprises of the enforcement staff. This is what businesses expect most from government agencies rather than monetary support.

By Xuan Thao/ Kieu Oanh

Related News

Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

VCN - Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures, leading to a blockage in exports to these markets.
Will textile and garment exports be affected by Trump 2.0 policy?

Will textile and garment exports be affected by Trump 2.0 policy?

VCN - That was one of the topics of interest at the press conference of the Vietnam Textile and Apparel Association (VITAS) held on November 19.

Latest News

MoIT sets export growth at 6% in 2025

MoIT sets export growth at 6% in 2025

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.
Vietnam's first logistics park opens in Lang Son

Vietnam's first logistics park opens in Lang Son

The Viettel Lang Son Logistics Park, the first of its kind in Vietnam, officially opened in Cao Loc district, the northern mountainous province of Lang Son, on December 11.
Vietnam’s coffee exports possibly top 5 billion USD for first time

Vietnam’s coffee exports possibly top 5 billion USD for first time

Coffee prices have increased by over 50% on average this year, enabling the export revenue to potentially surpass 5 billion USD for the first time.
Support aggregate demand to promote economic growth

Support aggregate demand to promote economic growth

VCN - Financial policy, especially fiscal policy, has played an important role in promoting aggregate demand to contribute to economic development. In the current context, when the economy is entering the final year of the 2021-2025 terms with many difficulties and challenges, it is necessary to have solutions to promote production and business, supporting economic development.

More News

Plastics demand growing, says industry association

Plastics demand growing, says industry association

The plastics industry has enjoyed impressive growth this year, driven by steady demand from the construction, packaging and consumer industries, according to the Vietnam Plastics Association.
Vietnam’s tuna exports gain larger market shares in key markets

Vietnam’s tuna exports gain larger market shares in key markets

After overcoming challenges related to tuna size regulations and market volatility, Vietnam’s tuna exports are recovering and expanding in key markets.
Efficiency in emission reduction and sustainable development for wood enterprises

Efficiency in emission reduction and sustainable development for wood enterprises

VCN - Digital transformation aimed at reducing emissions and fostering sustainable development has become an intrinsic need for businesses. This shift stems from recognizing the tangible benefits demonstrated by pioneering enterprises that have successfully implemented and achieved these initiatives.
US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN- As one of the world's leading textile, garment and footwear exporting countries, Vietnam is facing many opportunities as well as challenges in response to strict customer regulations in "greening" production, including a number of commitments such as implementing social and environmental responsibilities and reducing emissions...
Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Opportunities for export breakthroughs through e-commerce

Opportunities for export breakthroughs through e-commerce

VCN - According to Mr. Nguyen Van Thanh (in photo), Director of the E-commerce Development Center - Department of E-commerce and Digital Economy (Ministry of Industry and Trade), developing national e-commerce programs and fostering international cooperation are key to effectively harnessing Vietnam's potential in this area, thereby enhancing competitiveness and promoting sustainable development in the global market.
Vietnam, US strengthen supply chain cooperation in global marketplace

Vietnam, US strengthen supply chain cooperation in global marketplace

The 2024 Vietnam-US Cooperation Forum, held in Ho Chi Minh City, focused on new US policy directions and opportunities to enhance bilateral economic and trade relations.
Over 218,500 enterprises established, resume operations in 11 months

Over 218,500 enterprises established, resume operations in 11 months

More than 218,500 enterprises were established and resumed operations in Vietnam in the past 11 months of 2024, a year-on-year increase of 7.4%, according to the General Statistics Office (GSO).
Read More

Your care

Latest Most read
MoIT sets export growth at 6% in 2025

MoIT sets export growth at 6% in 2025

The recovery of major markets such as the US and EU will be an important driving force for exports, especially in electronics, consumer goods and textiles, the MoIT said.
Vietnam's first logistics park opens in Lang Son

Vietnam's first logistics park opens in Lang Son

The Viettel Lang Son Logistics Park, the first of its kind in Vietnam, officially opened in Cao Loc district, the northern mountainous province of Lang Son, on December 11.
Vietnam’s coffee exports possibly top 5 billion USD for first time

Vietnam’s coffee exports possibly top 5 billion USD for first time

Coffee prices have increased by over 50% on average this year, enabling the export revenue to potentially surpass 5 billion USD for the first time.
Support aggregate demand to promote economic growth

Support aggregate demand to promote economic growth

VCN - In recent times, the world situation has been unstable, creating many difficulties and challenges for the sustainable growth of the global economy.
Plastics demand growing, says industry association

Plastics demand growing, says industry association

The plastics industry has enjoyed impressive growth this year, driven by steady demand from the construction, packaging and consumer industries, according to the Vietnam Plastics Association.
Mobile Version