Businesses need further support to overcome difficulties

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Ms. Nguyen Thi Huong, Director General of the General Statistics Office of Vietnam

What are your comments on the VCCI and WB reports on the impact of the pandemic on businesses?

The Covid-19 pandemic happened from the first quarter of 2020 and had a negative impact on the global and Vietnamese economies. Until now, despite new coronavirus variants, the global economy showed many signs of growth, both the IMF and the World Bank forecast that the global economy will see a positive growth at 4% and 5%, respectively.

Although Vietnamin 2020 and Q1 of 2021 had a higher GDP growth rate than other countries in the world and the region, this rate (4.58% in the first quarter of this year) is much lower than the growth rate of 6.82% in the same period in 2019 and the highest growth rate in the past ten years of 2018 (7.45%).

This shows that the Covid-19 pandemic has made a heavy impact on businesses. We believe that the report on the impact of the Covid-19 pandemic on businesses announced by VCCI and the WBis appropriate.

According to you, to help businesses overcome difficulties, what support is needed?

Given by the developments of the Covid-19 pandemic and the difficulties that businesses are still facing, to help the business community overcome difficulties caused by Covid-19, I think it is necessary to focus on the following groups of basic solutions:

First, the business community needs to actively seek new opportunities, ideas, orientations and trading partners to stabilize and develop production and business during the Covid-19 pandemic and post-pandemic.

More than ever, businesses as the main production and business force which is the biggest contributor to the economy, need to maximize the spirit of innovation and creativity; apply new methods, digital technologies, good practices and effectively exploit all potentials and advantages to sustain and develop.

Second, the State needs to expand effective support policies and packages to help them overcome difficulties. Specifically, it is necessary to focus on reviewing and launching support policies such as: expanding the issued support packages according to some criteria on the beneficiaries, the time and the level of support.

Also, consider reducing corporate income tax until the end of 2021, to all enterprises at different rates based on their revenue, business lines and sectors, especially those thatare heavily affected by the Covid-19 pandemic. And exempt and reduce taxes, fees and land rent until the end of 2021 and expand credit packages to support businesses affected by the Covid-19 pandemic to access loans from credit institutions.

In addition, it is also necessary to consider a credit support package for businesses with interest rates of 0% or preferential interest rates; to have effective policies to further support businesses in seeking customers and consuming markets, selling products and connecting businesses; helpbusinesses access import and export information channels and improve their production capacity and competitiveness in global trade.

To adopt effective policies to stimulate consumption of domestically produced and exported goods, thereby promoting domestic production, creating jobs for employees, minimizing job losses.

To support employees, it is necessary to reduce administrative procedures in the support policies; expand the scope, time and level of support for employees who are unemployed and on unpaid leave due to the pandemic; support recruitment channel to compensate skilled employees for businesses after the Covid-19 pandemic.

What solutions should be taken to achieve and exceed the economic growth target of 2021?

Vietnam's economic growth in the first quarter of 2021 reached 4.58%, higher than the growth rate of 3.68% in the first quarter of 2020 and a good figurein the context of the global economy being affected by the pandemic.

Although the pandemic has been basically controlled in Vietnam, it is still complicated in the world and has disrupted global supply chains, affecting our country’s economic sectors. In the remaining quarters, Vietnam's economy will continue to face many difficulties, the growth target of 6.5% is a big challenge, requiring the cooperation and consensus of the Government, businesses and people, as well asl synchronous solutions.

Accordingly, in the immediate future, it is necessary to control the pandemic and quickly deploy Covid-19 vaccinations on a large scale in order to prevent the pandemic and stabilize economic development; to maintain the growth momentum of the agricultural sector by promoting pig re-herding, shifting livestock herds by raising poultry and cattle and intensifying crops in accordance with climate change and restructuring plants and animals to suit the soil and market.

Promoting the association of production with product processing and consumption, applying science and technology, especially technology for post-harvest agricultural product preservation and processing; focusing on developing deep processing industries, key agricultural and aquatic products processing; supporting industries, consumer goods production, and applying international standards in the production and processing to achieve high added value.

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Taking advantage of new-generation free trade agreements, especially CPTPP, EVFTA and RCEP agreements to promote import and export activities, improve competitive opportunities and the value of most exported goods especially advantageous products.

Thank you madam!