Proactive response to external volatility

Statistics from the Ministry of Industry and Trade’s Department of Business Registration showed that in the first nine months of the year, the number of newly-established enterprises reached over 68,000 with a total registered capital of VND420 trillion (US$18.5 billion) - an increase of 28.5% in the number of business and 31.4% in registered capital over the same period last year.

 

In addition, the number of enterprises suspending operations was 47,000, up 15.3%. Of the total, 12,848 businesses resumed operations, up 8.2% from the same period last year.

 

The figure shows efforts made by the business community as well as the effectiveness of measures devised by the government to improving the business and investment environment and removing difficulties for enterprises.

 

Many companies have also appeared to be quite optimistic about the situation of production and business in general. A recent survey released by the General Statistics Office of Vietnam in the third quarter of 2015 also showed that 36.6% of enterprises in the domestic processing and manufacturing sector participating in its survey on business trends, said that local business would be better in the third quarter.

 

At the same time, 19.9% of the enterprises predicted that local business would be weaker, while 43.5%t said the business situation would remain unchanged.

 

All surveyed businesses said that trends in production and business in the second quarter were more stable than in the first quarter.

 

For Vietnam’s macro-economy in the first three quarters of the year, gross domestic product (GDP) growth was maintained at 6.5%; inflation continued to be controlled at a low level; credit growth reached 10.78% compared to the end of 2014, the highest growth rate since 2011; and the total means of payment rose by 8.88%. These factors have contributed to strengthening confidence, and empowering enterprises to overcome difficulties.

 

However, during the first nine months of 2015, the number of enterprises suspending operations was 47,000, up 15.3%. That figure proved that the situation of enterprises has not been improved to the developments in the domestic economy, as well as the slower recovery of local enterprises.

 

To improve the efficiency of enterprises, one of the important solutions is to further improve the local business environment. Domestic enterprises should also take advantage of every opportunity to reduce production costs, lower costs, and further improve the quality of products in order to increase competitiveness for Vietnam products in international markets.

 

Enterprises also need to build sound business plans as well as stay proactive to respond to fluctuations in foreign exchange rates and the global market, while increasing investment to improve production efficiency when Vietnam fully implements its international commitments on opening the market.

 

(Source: nhandan.org.vn)