Vietnam: Long-term economic solutions needed to cope with pandemic

TNG Investment and Trading JSC produces facemasks to fill out the withdrawn clothes orders in Covid-19. - The Vietnam News/ANN

HANOI, March 13 (The Vietnam News/ANN): As the Covid-19 pandemic could continue to have serious impacts on a global scale and may only be eliminated in four to five years, experts have said Vietnam needs long-term policies to cope.

At the launch of a report on the impact of the pandemic on Vietnamese firms by the World Bank (WB) and the Vietnam Chamber for Commerce and Industry (VCCI) yesterday in Hanoi, VCCI’s chairman Vu Tien Loc said though vaccines were being distributed in many countries, humanity was still facing great risks.

The report, which surveyed 10,197 enterprises nationwide, found the pandemic had a very negative impact on businesses in Vietnam, with 87.2 per cent of surveyed firms affected at the large level, with just 11 per cent of enterprises "not affected by anything" and nearly 2 per cent reported a "mostly positive" impact.

Some industries reported suffering great losses including private enterprises in the garment industry with 97 per cent, in communications with 96 per cent, and in electrical equipment manufacturing with 94 per cent.

Foreign direct investment (FDI) enterprises in some industries also had a high rate of negative effects including real estate with 100 per cent, information and communication with 97 per cent and agriculture and aquaculture with 95 per cent.

In terms of geography, production and business activities stalled and declined more for private enterprises in the central coastal areas with 91 per cent negatively affected and FDI enterprises in the Central Highlands with 94 per cent.

Provinces and cities with the highest rates of private enterprises adversely affected were Danang with 98 per cent and Kon Tum and Khánh Hoà with 95 per cent each.

Dau Anh Tuan, head of the VCCI Legal Department and a representative of the survey team, said the pandemic most influenced firms' access to customers, cash flow, labour and supply chains.

Tuan said 35 per cent of private enterprises and 22 per cent of FDI enterprises had to reduce their workforce while 36 per cent of the small and micro private enterprises had to do so.

The report said it was necessary to prioritise policy implementation capacity to facilitate business and help them access support packages.

The report also suggested offering financial support to businesses that maintain a high proportion of employees and support the cost of training to improve qualifications for workers

At the same time, it recommended policies to develop industries and supporting services to ease dependence on external sources, create added value, increase Việt Nam's position in global supply chains and enhance the benefits from FTAs.

While 75 per cent of enterprises believed the Government's policies were useful, longer-term solutions are still needed.

According to the report, enterprises asked the Government to increase public investment, complete infrastructure works, and implement stimulus packages for economic recovery.

They said they wanted solutions to develop the domestic market, promote connections between domestic businesses and consumers, and form Vietnamese supply chains.

They also emphasised the importance of administrative reform, improving the efficiency of law enforcement to create a favourable business environment and support the sustainable recovery of businesses.

For the record, Vietnam was one of just 10 in the world and the only one in South-East Asia to have recorded positive economic growth in 2020 with its control of the pandemic lauded all over the world. - The Vietnam News/ANN
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Vietnam , Covid-19 , Economic Plans , Needed , Overcome , Pandemic


Next In Aseanplus News

Asean News Headlines as at 8pm on Tuesday (May 11)
Minister: Racism and xenophobic behaviour will become normalised if Singapore is not careful
Indian PM Modi to skip G7 meet in Britain due to COVID-19 crisis
Singapore: 13 new Covid-19 community cases confirmed, seven linked to Changi Airport cluster; reinfection cases also reported
1.2 million Jakartans go hometowns amid exodus ban despite Covid-19 cases rising to 1,723,596
FDI net inflows into Philippines drop 2.2% year-on-year in February as Covid-19 total hits 1,113,547
Travel ban widened to Pakistan, Bangladesh, Nepal after Indian variant found in Thailand; Covid-19 total cases now almost 87,000
Indonesia considers plan to tax trade in cryptocurrencies
UN calls for greater international pressure on Myanmar's junta
New outbreaks prompt return to restrictions in Singapore and Taiwan

Stories You'll Enjoy