Nurturing trust and entrepreneurial spirit when the market is difficult

Through the first ten months of 2023, the number of businesses dissolving and withdrawing from the market is increasing. This is an issue that needs attention from management agencies, thereby requiring solutions to promote the entrepreneurial spirit of businesses in difficult circumstances.

The young and small-scale businesses have "weak health"

According to data from the Department of Business Registration Management (Ministry of Planning and Investment), in the first ten months of 2023, the whole country had nearly 146.6 thousand businesses withdrawing from the market, an increase of 20% over the same period last year; On average, 14.7 thousand businesses withdraw from the market every month. Of which, the number of businesses temporarily suspending business is more than eighty one thousand, an increase of 22.1% over the same period in 2022.

The number of businesses waiting for dissolution procedures is more than 50.7 thousand, an increase of 25.9% over the same period in 2022. Businesses waiting for dissolution procedures mainly have capital of less than VND 10 billion. The number of dissolved enterprises is more than VND 14.7 thousand, down 4.5% over the same period in 2022. 6/17 main business sectors have an increase in the number of dissolved enterprises compared to the same period in 2022. According to the Department of registering management for business, the majority of businesses temporarily suspended business and dissolved in the first ten months of the year with short operating time (less than 5 years) and small scale under VND 10 billion.

One of the bright spots in the business situation is that the number of new establishments tends to recover when in the past ten months it has reached more than 131.7 thousand businesses, an increase of 4.7% over the same period in 2022, one point two times higher than the average level for the period 2018-2022. With this progress, some forecasts say that the country will reach over 160 thousand businesses in 2023. Although the number of newly established businesses in Vietnam has increased over the years, it is clear that there are many challenges. formula to achieve the target of 1.5 million businesses by 2025 set by the Government in Resolution No. 58/NQ-CP dated April 21, 2023 on a number of key policies and solutions to support host businesses. adaptation, rapid recovery and sustainable development until 2025.

In the report on the results of implementing the socio-economic development plan in 2023; In the Government's expected 2024 socio-economic development plan before the National Assembly, many shortcomings and limitations affecting businesses have been pointed out. Specifically, macroeconomic stability is not really solid due to many external pressures. Industrial production recovered slowly, especially the processing and manufacturing industries. Production and business activities face many difficulties; The number of dissolved and bankrupt enterprises has increased, and lack of orders is common; Equitization of state-owned enterprises is slow.

Along with that, domestic production still depends heavily on imported raw materials; Domestic market demand has shrunk, exports to key markets have decreased over the same period; Trade surplus increased mainly due to reduced import of input materials. Access to credit is difficult, real estate and corporate bond markets still have potential risks; Improving the business investment environment still has some shortcomings...

A recent survey by the Vietnam Confederation of Commerce and Industry (VCCI) said that, faced with current difficulties, only 35% of businesses surveyed said they would expand their business scale in next two years. Even, the rate of businesses planning to reduce business scale or close their business is 10.7%, continuing to be at a high level since the Covid-19 epidemic appeared.

Increase confidence and entrepreneurial spirit

According to economic expert Dr. Le Duy Binh, Director of Economica Vietnam, businesses are an important force contributing to GDP, import-export turnover..., with many business opportunities being opened along with domestic market reforms, free trade agreements for integration. Therefore, to support businesses to overcome difficulties, Dr. Le Duy Binh emphasized ensuring a legal environment that firmly protects business freedom, while creating a favorable business environment to increase trust and encourage people to invest capital in business. , investing to expand production and business.

In fact, businesses have been making efforts to take advantage of many opportunities to expand production and business. For example, to take advantage of the opportunity to join the product supply chain for the aviation and space industry, many Vietnamese supporting industry enterprises have been investing in factories and technology to meet standards and production regulations.

Mr. Ishida Takayuki, General Director of Vietnam Supporting Industry Development Investment Consulting Company Limited (Japan), said that it is expected that in the next 20 years, about 42,600 new aircraft will be produced. Boeing has committed to supporting Vietnamese businesses in participating in the product supply chain and producing supporting components, so businesses need to invest to find opportunities to enter this supply chain.

Meanwhile, many businesses reported that international market demand has begun to improve in the past two months. There is even a textile enterprise that said that by 2024, it has finalized orders for one million products... A representative of LKM Mechanical Co., Ltd. shared, thanks to accelerating the process of digitalization and application of technology from production to trade, so the Company still maintains and expands many important customers.

Businesses expect the market to recover more, helping businesses speed up their return to the market and establish new businesses, along with more motivation to expand scale and increase "resistance". According to Dr. Le Duy Binh, management agencies need to really facilitate the development of the business community and remove difficulties in legal regulations. In particular, this expert emphasized nurturing the entrepreneurial spirit and startup spirit so that Vietnamese businesses can grow in both quantity and quality.

Source: Customs News