“Open path” for more investment and development of business

VCN - According to Dr. To Hoai Nam (pictured), Vice President and General Secretary of the Vietnam Association of Small and Medium Enterprises, businesses have bounced back thanks to macroeconomic stability, but further support for the community businesses is still crucial and must focus on key areas.
Dr. To Hoai Nam
Dr. To Hoai Nam, Vice President and General Secretary of the Vietnam Association of Small and Medium Enterprises

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

- Amid the pandemic, the "health" of the majority of businesses was eroded, but the majority remained strong and even maintained a bright spot in creating jobs and incomes for workers and contributing to economic recovery and development.

At the same time, it is also an area that shows a relatively good ability to absorb the Government's support policies which contribute significantly to the growth and recovery of Vietnam's economy in general.

However, businesses are not only severely impacted by the pandemic, many unexpected events in 2022 have made it a double whammy. Particularly, the supply chain reconstruction in the direction of decentralization and not depending on certain countries to limit the risk of a commodity shortage crisis like in 2021. Along with that, there are geopolitical uncertainties in many markets, making it difficult for businesses.

What recommendations do you have for businesses to keep their recovery momentum and expand investment?

- In order for businesses to boldly expand their investment scale as well as make new business plans, state agencies need to ensure control and management to ensure a stable macroeconomic environment; stable legal policy; reasonable compliance costs and good administrative procedures; as well as well-equipped infrastructure.

Accordingly, given the maintenance of macroeconomic stability, businesses believe that this is an important foundation to create prerequisites for the recovery and development of the business community, especially for investment activities as well as "bold" premises for economic development in 2022 and the following years in the context of continuing to implement measures and policies to adapt safely, flexibly, effectively control the Covid-19 pandemic and its variants.

In addition, regulatory agencies must implement key reforms such as strengthening and improving business institutions and pushing the judiciary and law enforcement. As a matter of fact, businesses long for the certainty of the law so they can anticipate changes in the business environment to be proactive in all situations.

Economic stimulus packages to prevent a decline are necessary for businesses, but not necessarily "one arrow hits many targets". Instead, it is necessary to design more carefully with the motto "one arrow only hits one target", which will be safer for inflation control.

Management agencies also need to focus on prioritizing investment and stimulating investment in the fields of agriculture, fisheries, tourism, processing and manufacturing, and infrastructure for irrigation and rural transport.

Many studies have shown the linkage effects among such fields. Therefore, pushing investment in these sectors will free up the most production capacity for domestic enterprises, mainly small and medium enterprises.

Accounting for 98% of the total number of businesses, what specific support solutions for small and medium businesses in the current period?

- Along with the recommendations mentioned above, the smooth coordination from the central to local levels, and not “pushing responsibility” is a prerequisite for effective programs, projects and schemes to support small and medium enterprises.

Currently, the Law on Supporting Small and Medium Enterprises have been issued, so it is necessary to focus on the rapid promulgation of legal policies and effective enforcement.

Programs, projects and schemes to support small and medium-sized enterprises should prioritize resource allocation at least 10 times higher than in 2021, in order to achieve the necessary "threshold scale" to have a positive impact and spread quickly to the small and medium business community.

In the financial sector, the business community wants reforms in tax procedures for small and micro enterprises in a simple and convenient way. Moreover, the rapid implementation of policies and programs in the 2% interest rate support package with a scale of VND40,000 billion from the bank can pour more capital into recovery. Especially, credit loans for export, agriculture and rural areas, innovation, supporting industries, processing and manufacturing, linkage chains should be a priority.

On the other hand, in my opinion, the management agency should quickly issue a policy to support online purchases and sales specifically for small and medium enterprises. This is to adapt to the drastic and rapid changes of customers and partners from buying and selling goods directly to online in order to help them survive and develop.

Management agencies can also provide support in the form of public procurement for construction bidding packages under VND5 billion and procurement of goods and services under VND3 billion using the budget required for contractors of micro and small businesses.

For bidding packages that require too high scientific and technological capacity or the package price for construction is over VND5 billion and the procurement of goods and services is over VND3 billion, priority will be given to contractors employing subcontractors of micro and small businesses.

Finally, I hope that the authorities create a favorable mechanism (especially the ground and procedures for project approval) to encourage domestic investors and private investors to boldly invest in key projects such as setting up small and micro-enterprise incubation zones and clusters.

These projects have "paved the way” and should be encouraged to be implemented in many policies of the Party and State and most recently the Law on Supporting Small and Medium Enterprises, but so far they have not been implemented.

Thank you very much!

By Hương Dịu (recorded)/ Thu Phuong

Related News

Vietnam makes comprehensive strides in public financial management reform

Vietnam makes comprehensive strides in public financial management reform

VCN - Vietnam has achieved significant milestones in its public financial management (PFM) reforms, earning praise for its comprehensive progress across multiple areas, according to the latest Public Expenditure and Financial Accountability (PEFA) Report.
The economy can achieve the GDP growth target of about 7 percent

The economy can achieve the GDP growth target of about 7 percent

VCN - According to Nguyen Thi Huong, Director General of the General Statistics Office, to achieve the economic growth target in 2024, macroeconomic stability will be an important foundation and it is necessary to continue to maintain exchange rate stability, control inflation, and ensure major balances of the economy.
Ensure price stability associated with macroeconomic stability

Ensure price stability associated with macroeconomic stability

VCN – To stabilize market prices from now until the end of the year, especially implementing the salary reform, the Ministry of Finance will implement solutions and respond to ensure price stability associated with macroeconomic stability.
Positive signal for a promising development cycle

Positive signal for a promising development cycle

VCN - From positive signals about production, trade and investment in the first 2 months of 2024, according to Associate Professor, PhD. Nguyen Thuong Lang (photo), senior lecturer at the Institute of International Trade and Economics, National Economics University, this is a sign that Vietnam is entering a promising development cycle.

Latest News

Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.

More News

Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Rice export prices drop, but decline expected to be short-term

Rice export prices drop, but decline expected to be short-term

Việt Nam’s rice export prices have declined, reaching their lowest level in three years.
Key agro products expected to maintain export growth this year

Key agro products expected to maintain export growth this year

At present, agricultural exports, such as rice, coffee and seafood, have steadily secured a stable place in major global markets.
EU issues 12 warnings against Việt Nam’s food and agricultural exports

EU issues 12 warnings against Việt Nam’s food and agricultural exports

The Việt Nam SPS Office has reported that some Vietnamese export products failed to meet the EU’s stringent standards.
Việt Nam to impose VAT on low-value express-imported goods

Việt Nam to impose VAT on low-value express-imported goods

Việt Nam will end a previous policy that exempted imported goods valued under VNĐ1 million (US$39.4) from taxes when shipped via express delivery.
Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

VCN - Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - Vietnam's total import and export turnover in the second half of January 2025 (January 16-31, 2025) reached US$28.9 billion, the latest preliminary statistics of the General Department of Vietnam Customs reported.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Read More

Your care

Latest Most read
Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.
Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Mobile Version