Economic difficulties still looming

Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry, affirms that 2013 has seen a large number of bankrupt and dissolved businesses. More than 60% of them are unable to pay taxes.

Over the past 5 years, especially the last two years, many businesses have grasped business opportunities arising from international economic integration, but there remain certain problems caused by macroeconomic instability, such as low competitiveness and production efficiency, Loc says.

Doan Trong Ly, President of the Animal Production Processing Import and Export Joint Stock Company ( APROCIMEX), says 2011 and 2012 were confronted with the shortage of capital for production, but 2013 has seen the domestic market shrinking by 20% compared to the previous years.

To iron out snags in raising social demands to a higher level, it depends on the Government's macroeconomic management. In other words, the Government will have to take drastic measures to find more outlets, especially for small-and medium-sized enterprises, Ly adds.

Ninh Thi Ty, President of Ho Guom Garment Company, says most garment and footwear businesses have been in a fix, especially in recent months. They are all short of materials and then use of imported domestic ones instead remains low.

Nguyen Hoang, President of the Hanoi Support Industry Association, says many businesses need more assistance from the Government and other ministries so they are still in their infancy.

To help them overcome difficulties, Loc emphasises that the VCCI will continue to push through administration reform to improve the business environment.

It will support them in restructuring their operations and improving their management skills, making full use of all resources available and applying modern growth models.

The association will support businesses in promoting import-export activities and grasping new opportunities, dealing with trade barriers during their integration into international markets and building market protection mechanisms in line with World Trade Organisation (WTO) regulations.

(Source: VOVNEWS)