The second and third quarters are often the “golden” time for enterprises to speed up their production and business. But from the end of May until now, most businesses have been “sitting on the fence” because of the negative impacts of the fourth wave of the COVID-19 epidemic.
It is forecast that the production and business situation in 2021 will face many difficulties as businesses have to both prevent and control the epidemic and maintain the supply chain. Many businesses are on the brink of bankruptcy.
Therefore, the Government and ministries, branches and localities are trying their best to have effective and timely policies to support businesses and maintain the “stronghold” of production.
In particular, Government support policies in 2021 for businesses have been evaluated more promptly and closely by the business community. For example, the policy of extending tax and land payments were implemented until June 23 for more than 52,000 subjects with a total amount of more than VND33 trillion; nearly VND100 billion having been loaned to pay salaries for 30,000 workers who have suffered from work suspension.
As many as 16 credit institutions have reduced interest rates on credit loans by 1%/year, worth a total of VND18 trillion across six months. Other essential services such as electricity, water, and telecommunications have also been addressed with discounts of nearly VND14 trillion.
According to the Vietnam Association of Small and Medium Enterprises, the State’s support policies for enterprises have been very timely and effective as up to 70% of surveyed enterprises were satisfied with the support policies of the State.
However, these policies are still considered only temporary “pain relievers” and cannot play a decisive role. Therefore, what is still important is the internal capacity of the enterprises themselves.
In the long term, short-term support policies in times of difficulty combined with existing long-term policies will bring better resources for businesses to rejuvenate production and business momentum.
Recently, the Vietnam Chamber of Commerce and Industry (VCCI) has proposed two groups of solutions to boost Vietnam's economic growth in the current situation. In the immediate future, the VCCI believes it is necessary to quickly complete legal regulations on measures to prevent and control the COVID-19 epidemic and ensure continuous and uninterrupted production.
At the same time, it is necessary to promulgate specific regulations and measures to help the business community be more proactive in making appropriate production and business plans, avoiding being passive when localities are imposing social distancing, helping reduce the risk of supply chain and production disruption.
In the long term, prioritising macroeconomic stability and strengthening the control of the COVID-19 epidemic, as well as providing “vaccine passports” for businesses are two key goals for a solid foundation for economic and business growth in the following years.
It is forecast that the COVID-19 pandemic will continue to have a serious impact on the world. Maintaining the production activities of enterprises will be an important solution contributing to the successful implementation of the “dual goals”.
According to some economic experts, the Government needs to develop policies to make it easier for businesses to overcome the pandemic, as well as avail of the issued support packages in a simple and easy manner.
Business development and guarantee funds should research and promulgate policies to support small and medium enterprises in a more flexible manner.
Meanwhile, enterprises also need to promote their internal resources, actively redirect investment and innovate technology to promptly replace “broken” points in the supply chain and improve competitiveness, in order to help the economy soon recover and enter a new, higher stage of development.
