VietNamNet Bridge – Built up to rescue businesses, but the
Ministry of Industry and Trade’s (MOIT) plan on helping businesses overcome
difficulties is believed to be helpless, because it is “behind the times.”
The big rescue campaign initiated by MOIT
Understanding that the biggest
problem for businesses at this moment is the high inventory volume, MOIT’s plan
focuses on the measures to help stimulate the demand and boost sales.
The plan prioritizes the
organization of the trade promotion activities on the domestic market, especially
the programs of the “buy Vietnamese” campaigns. The trade promotion activities
would include the organization of trade fairs, exhibitions, the campaigns of
bringing goods to rural areas, islands and industrial parks.
MOIT also plans to help
enterprises develop their distribution networks, so that the networks can reach
out to remote markets, to rural areas and the markets which shares mainland
boundaries with Vietnam.
The ministry has vowed to take
drastic measures to manage the market, prevent trade frauds in order to help
Vietnamese authentic enterprises expand their domestic market shares.
However, the plan has not been
highly appreciated by experts, who say the solutions suggested by MOIT are very
old and vague.
Secretary General of the Vietnam Chamber
of Commerce and Industry (VCCI) Pham Thi Thu Hang said that the business rescue
plan should be designed in the way to help businesses overcome difficulties.
However, in fact, only big enterprises can access preferential loans, while the
loans remain out of reach of small and medium enterprises.
The “health” of enterprises can
be reflected in the two indicators, the unemployment rate and the purchasing
power index.
According to HSBC, Vietnamese
people’s purchases have been on the decrease. This shows that in the first
three months of the year, enterprises mostly tried to sell inventories, while
the production did not increase.
Chair of the Vietnam Association
of Foreign Invested Enterprises VAFIE Nguyen Mai, also believes that what the
businesses most want now is the capital. Therefore, MOIT just needs to draw up
a rescue campaign which allows businesses access the bank loans with reasonable
costs.
“Businesses need to be able to
access bank loans in August or September, so that they can have working capital
to organize the production in the fourth quarter and prepare for the next
year’s business plan,” Mai said.
“It’s obvious that businesses are
now in danger. Meanwhile, the ministries are too late in putting forward
reasonable solutions,” Mai added.
He went on to say that figure
about 55,000 dissolved businesses released by the Ministry of Planning and
Investment may not be true. At least 100,000 businesses have been in very
difficult conditions. The industrial production growth rate in Hanoi and HCM
City has been staying at 4-5 percent over the last few months, which
demonstrate the sharp falls if compared with the last year’s growth rates of
17-18 percent.
The plan turns out of date before it comes out
Nguyen Viet Manh, Director of the
Credit Department under the State Bank of Vietnam, said the information in the
MOIT’s plan has not been updated.
“All the suggested measures in
the plan about the credit policies have been taken in reality already,” Manh noted.
MOIT wanted the interest rate to
decrease to 11 percent. Meanwhile, in fact, the ceiling deposit interest rate
has been lowered to nine percent already. The banking sector has also carried
out the plan on funding the agricultural mechanical engineering projects and
the rural development.
Source: Tien phong
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment