The Prime Minister has issued a new message in the fight against the COVID-19 pandemic, which is that the battle will last for a long time and we will have to live with the virus without being able to stamp it out completely. This new message requires a correspondingly appropriate response.

Specifically, the head of government asked for production and business activities to be maintained in places that meet safety requirements and that enterprises should be facilitated to operate so as not to disrupt the supply chains and ensure the smooth circulation of goods nationwide. Local authorities are required not to issue their own rules and to abolish inappropriate regulations.

The message gives hopes to the business community as they have been facing rising input costs and risks of disrupted supply chains and of worker shortages due to inconsistency in the implementation of social distancing measures between provinces. Those facing the greatest difficulties are in the garment, footwear and seafood sectors since they employ a large number of workers and the production processes involve many procedures and liaisons.

Over the past several weeks, these companies have been struggling to secure travel documents for their employees to conduct export and import procedures and conduct testing for their employees. Logistics and compliance costs have risen sharply while they are also facing the risk of being fined for late deliveries.

This difficult situation was reflected in the economic picture of the last eight months, during which over 85,000 enterprises had to close temporarily, up 24.2% and far exceeding the number of newly established enterprises. The index of industrial production in August fell 4.2% against the previous month and 7.4% from the same month last year, with the largest decrease seen in the manufacturing sector, which is usually the driver of growth. The balance of trade shifted to a deficit of US$3.71 billion while domestic demand continued to shrink. Notably, the production index in some localities fell sharply, with the largest contraction recorded at 60.1%.

That is why since the onset of the current outbreak, the business community has repeatedly proposed that the Prime Minister consider tax cuts and exemptions while implementing support packages in a quicker, more effective and transparent manner. According to some experts, the bottleneck now lies in local authorities where some have introduced blockage measures in the name of fighting the pandemic, resulting in the paralysed circulation of goods.

In order to revive enterprises in this extraordinarily difficult time, it is necessary to immediately start with doses of pain relief for the economy, not just financial and monetary support policies. Public agencies need to proactively adapt to the new situation and facilitate enterprises to both prevent the spread of COVID-19 and maintain operations, thus avoiding the incurment of additional costs.

Combatting COVID-19 is an all-encompassing battle, including on the economic front. Determining that the fight will last for a long time means that maintaining economic growth and the livelihoods of the people is a must.

Every opportunity should be grasped to sustain production and business and protect jobs for workers. For every enterprise that survives this difficult period, there is one more opportunity for the economy to recover and grow.

Source: Nhan Dan Online

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