{"id":76531,"date":"2024-06-03T08:38:00","date_gmt":"2024-06-03T01:38:00","guid":{"rendered":"https:\/\/neu.edu.vn\/kinhte-congthuong-vn-decisive-measures-needed-to-keep-businesses-from-being-forced-out-of-the-market-assoc-prof-dr-nguyen-thuong-lang\/"},"modified":"2024-06-03T08:38:00","modified_gmt":"2024-06-03T01:38:00","slug":"kinhte-congthuong-vn-decisive-measures-needed-to-keep-businesses-from-being-forced-out-of-the-market-assoc-prof-dr-nguyen-thuong-lang","status":"publish","type":"post","link":"https:\/\/neu.edu.vn\/en\/kinhte-congthuong-vn-decisive-measures-needed-to-keep-businesses-from-being-forced-out-of-the-market-assoc-prof-dr-nguyen-thuong-lang\/","title":{"rendered":"Kinhte.congthuong.vn: Decisive Measures Needed to Keep Businesses from Being Forced Out of the Market. Assoc. Prof. Dr. Nguyen Thuong Lang"},"content":{"rendered":"

The large number of businesses exiting the market in the first five months of the year is a cause for concern, requiring decisive measures to help businesses overcome difficulties.<\/p>\n

Assoc. Prof. Dr. Nguyen Thuong Lang, Senior Lecturer at the School of Trade and International Economics, National Economics University (NEU)<\/strong>, shares his views on measures to address the difficulties businesses currently face.<\/p>\n

The number of businesses withdrawing from the market in the first five months of the year reached 97,300, indicating that businesses still face considerable difficulties in production and business operations. How do you view this issue?<\/em><\/strong><\/p>\n

The high number of business dissolutions in the first five months of the year shows that the market<\/a> is undergoing a significant shift, placing greater demands on responsiveness, resilience in the face of substantial changes, and competitiveness to maintain supply chain connections in a rapidly changing environment. This could signal a new stage of development for businesses if they restructure effectively based on new growth drivers.<\/p>\n

It also highlights the difficulties businesses face in securing and effectively fulfilling orders, especially long-term orders of an appropriate scale, as well as difficulties arising from increased costs of complying with requirements for green, organic, low-carbon and net-zero emissions standards, energy restructuring, and the circular economy<\/a>. In addition, the costs associated with the business environment have yet to approach zero, logistics costs remain high, and global economic instability is becoming a tangible challenge and a risk that is difficult to avoid.<\/p>\n

\n\n\n\n\n
\"Decisive<\/td>\n<\/tr>\n
Continue improving the business environment with the aim of minimizing compliance and logistics costs. Illustrative photo.<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Meanwhile, foreign partners’ deeper penetration into the Vietnamese market reduces domestic businesses’ market share and increases the likelihood of businesses withdrawing from the market. Unusual fluctuations in gold prices have drawn considerable business interest toward pursuing short-term gains rather than long-term investment.<\/p>\n

This situation calls for measures to help businesses overcome difficulties and build a sufficiently large business base to achieve national economic goals, capitalize on existing or new opportunities, unlock potential, and substantively strengthen internal capacity so that the country does not fall behind and businesses are not forced out of the market.<\/p>\n

What measures are needed to continue helping businesses overcome their current difficulties?<\/em><\/strong><\/p>\n

At this stage, the necessary approach is to combine and align an enhanced role for the State with businesses’ own efforts. Interest rate and tax support programs, along with support for trade promotion, agricultural extension, industrial extension, commercial development, and OCOP<\/a>, need to be advanced and implemented decisively. Further improvements to the business environment must aim to minimize compliance and logistics costs, while more thorough action is needed to reduce informal costs. Businesses should receive support in finding and connecting with domestic and foreign partners. The institutional framework for coordinated development should be improved to strongly encourage entrepreneurship, with additional programs to upgrade Vietnam’s key products with global brands.<\/p>\n

For businesses<\/a>, greater emphasis should be placed on dynamism and flexibility to adapt to constantly changing business conditions and adjust business models to new approaches, including greening and digitalization standards and targeted diversification. Businesses should prioritize restructuring and make full use of State support to find new customers, retain existing customers, and connect with other businesses to help one another identify and meet new demand. They should also emphasize market research and forecasting to identify and anticipate trends, while establishing effective risk contingency mechanisms.<\/p>\n

From the perspective of the industry and trade sector, what measures do you think are needed to help businesses overcome difficulties?<\/em><\/strong><\/p>\n

The industry and trade sector<\/a> needs to help businesses connect with and reach domestic and foreign partners by organizing supply-demand matching events, promoting market research, providing product and market information, training and developing human resources, especially digital talent, and offering startup consulting.<\/p>\n

\n\n\n\n\n
\"Decisive<\/td>\n<\/tr>\n
Assoc. Prof. Dr. Nguyen Thuong Lang<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

At the same time, the sector needs to help businesses access interest rate support, tax incentives, and other incentives under Government support programs. It should also seek support from other domestic and international partners for research and market survey funding through trade offices, diplomatic agencies, international organizations, and nongovernmental organizations.<\/p>\n

Connecting domestic businesses so they can support one another, minimize difficulties, and leverage and complement one another’s strengths is essential. Priority should be given to developing e-commerce platforms and B2B and B2C connections to increase transactions. Businesses should be provided with information on standards for green transformation, clean transformation, organic transformation, digital transformation, and energy transition to help them transform their business models.<\/p>\n

Outreach on incentives under free trade agreements<\/a> should be strengthened so businesses can fully capitalize on opportunities. Business support programs tailored to localities, areas, and products should be developed and implemented decisively. Businesses should receive support in transforming their business models through new approaches based on innovation, developing brands for goods and services, and organizing business operations effectively along value chains.<\/p>\n

In particular, the industry and trade sector needs to coordinate with other sectors, such as logistics, tourism, banking, and agriculture, to provide businesses with more comprehensive, direct, and complete support.<\/p>\n

Thank you.<\/em><\/strong><\/p>\n

\n\n\n\n
\n

At the Government’s regular meeting for May, the Prime Minister directed the implementation of three groups of measures to address businesses’ difficulties.<\/p>\n

First, continue addressing difficulties facing businesses, particularly those related to administrative procedures, to make it easier for businesses to enter the market and operate.<\/p>\n

Second, improve input conditions, particularly through fiscal and monetary policy support, including continuing to maintain and ensure stability and helping businesses improve access to credit; recommend that the competent authorities continue considering tax reduction policies and reductions or deferrals of fees and charges to increase the funds available to businesses, support inputs, and provide solutions for outputs.<\/p>\n

Third, regarding export markets, advance measures to help businesses secure additional new orders soon to support their production and business operations.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Quang Loc<\/div>\n

Link: https:\/\/kinhte.congthuong.vn\/can-giai-phap-quyet-liet-de-doanh-nghiep-khong-bi-gat-khoi-thi-truong-323815.html<\/a><\/p>\n

This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The large number of businesses exiting the market in the first five months of the year is a cause for concern, requiring decisive measures to help businesses overcome difficulties. Assoc. Prof. Dr. Nguyen Thuong Lang, Senior Lecturer at the School of Trade and International Economics, National Economics University (NEU), shares his views on measures to address the difficulties businesses currently face. The number of businesses withdrawing from the market in the first five months of the year reached 97,300, indicating that businesses still face considerable difficulties in production and business operations. How do you view this issue? The high number of business dissolutions in the first five months of the year shows that the market is undergoing a significant shift, placing greater demands on responsiveness, resilience in the face of substantial changes, and competitiveness to maintain supply chain connections in a rapidly changing environment. This could signal a new stage of development for businesses if they restructure effectively based on new growth drivers. It also highlights the difficulties businesses face in securing and effectively fulfilling orders, especially long-term orders of an appropriate scale, as well as difficulties arising from increased costs of complying with requirements for green, organic, low-carbon and net-zero emissions standards, energy restructuring, and the circular economy. In addition, the costs associated with the business environment have yet to approach zero, logistics costs remain high, and global economic instability is becoming a tangible challenge and a risk that is difficult to avoid. Continue improving the business environment with the aim of minimizing compliance and logistics costs. Illustrative photo. Meanwhile, foreign partners’ deeper penetration into the Vietnamese market reduces domestic businesses’ market share and increases the likelihood of businesses withdrawing from the market. Unusual fluctuations in gold prices have drawn considerable business interest toward pursuing short-term gains rather than long-term investment. This situation calls for measures to help businesses overcome difficulties and build a sufficiently large business base to achieve national economic goals, capitalize on existing or new opportunities, unlock potential, and substantively strengthen internal capacity so that the country does not fall behind and businesses are not forced out of the market. What measures are needed to continue helping businesses overcome their current difficulties? At this stage, the necessary approach is to combine and align an enhanced role for the State with businesses’ own efforts. Interest rate and tax support programs, along with support for trade promotion, agricultural extension, industrial extension, commercial development, and OCOP, need to be advanced and implemented decisively. Further improvements to the business environment must aim to minimize compliance and logistics costs, while more thorough action is needed to reduce informal costs. Businesses should receive support in finding and connecting with domestic and foreign partners. The institutional framework for coordinated development should be improved to strongly encourage entrepreneurship, with additional programs to upgrade Vietnam’s key products with global brands. For businesses, greater emphasis should be placed on dynamism and flexibility to adapt to constantly changing business conditions and adjust business models to new approaches, including greening and digitalization standards and targeted diversification. Businesses should prioritize restructuring and make full use of State support to find new customers, retain existing customers, and connect with other businesses to help one another identify and meet new demand. They should also emphasize market research and forecasting to identify and anticipate trends, while establishing effective risk contingency mechanisms. From the perspective of the industry and trade sector, what measures do you think are needed to help businesses overcome difficulties? The industry and trade sector needs to help businesses connect with and reach domestic and foreign partners by organizing supply-demand matching events, promoting market research, providing product and market information, training and developing human resources, especially digital talent, and offering startup consulting. Assoc. Prof. Dr. Nguyen Thuong Lang At the same time, the sector needs to help businesses access interest rate support, tax incentives, and other incentives under Government support programs. It should also seek support from other domestic and international partners for research and market survey funding through trade offices, diplomatic agencies, international organizations, and nongovernmental organizations. Connecting domestic businesses so they can support one another, minimize difficulties, and leverage and complement one another’s strengths is essential. Priority should be given to developing e-commerce platforms and B2B and B2C connections to increase transactions. Businesses should be provided with information on standards for green transformation, clean transformation, organic transformation, digital transformation, and energy transition to help them transform their business models. Outreach on incentives under free trade agreements should be strengthened so businesses can fully capitalize on opportunities. Business support programs tailored to localities, areas, and products should be developed and implemented decisively. Businesses should receive support in transforming their business models through new approaches based on innovation, developing brands for goods and services, and organizing business operations effectively along value chains. In particular, the industry and trade sector needs to coordinate with other sectors, such as logistics, tourism, banking, and agriculture, to provide businesses with more comprehensive, direct, and complete support. Thank you. At the Government’s regular meeting for May, the Prime Minister directed the implementation of three groups of measures to address businesses’ difficulties. First, continue addressing difficulties facing businesses, particularly those related to administrative procedures, to make it easier for businesses to enter the market and operate. Second, improve input conditions, particularly through fiscal and monetary policy support, including continuing to maintain and ensure stability and helping businesses improve access to credit; recommend that the competent authorities continue considering tax reduction policies and reductions or deferrals of fees and charges to increase the funds available to businesses, support inputs, and provide solutions for outputs. Third, regarding export markets, advance measures to help businesses secure additional new orders soon to support their production and business operations. Quang Loc Link: https:\/\/kinhte.congthuong.vn\/can-giai-phap-quyet-liet-de-doanh-nghiep-khong-bi-gat-khoi-thi-truong-323815.html This is an automated translation. If you notice any errors, please contact the Department of Communications, National Economics University at phongtruyenthong@neu.edu.vn.<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[724],"tags":[],"class_list":["post-76531","post","type-post","status-publish","format-standard","hentry","category-economic-information","post-no-thumbnail"],"acf":[],"_links":{"self":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/76531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/comments?post=76531"}],"version-history":[{"count":0,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/posts\/76531\/revisions"}],"wp:attachment":[{"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/media?parent=76531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/categories?post=76531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/neu.edu.vn\/en\/wp-json\/wp\/v2\/tags?post=76531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}