VCCI releases annual report on Vietnamese businesses

VCCI releases annual report on Vietnamese businesses

At the launching ceremony (Source: hanoimoi.com.vn).

Nhan Dan Online – The Vietnam Chamber of Commerce and Industry (VCCI), in co-operation with the National Assembly Economic Committee and the World Bank (WB), issued its 2013 Vietnamese Business Annual Report (VBAR) on April 8.

According to the report, there were some obvious improvements in the factors which directly affected the manufacturing situation in 2013, including access to technology markets, traffic infrastructure, land issuance and land clearance for production expansion.

It also said that the policies and macroeconomic management undertaken in 2013 improved significantly against 2012, with enterprises giving better assessments of the quality of legal principles, administrative procedures relating to businesses and stability of the legal environment.

Regarding the policies implemented to facilitate enterprises’ access to capital, little improvement was seen in the credit growth rate last year despite a sharp decrease in lending rates. Credit institutions attributed this mainly to the fact that enterprises did not meet the borrowing requirements as stipulated. According to the report, 65.2% of businesses had demand for bank loans in 2013 but faced difficulty in acquiring them.

The report also revealed that 50.7% of the surveyed enterprises plan to maintain their production scale, while another 42.5% say they may expand the scale. Just 6.7% of those enterprises may narrow the scale and only 0.1% may stop operation.

At the launching ceremony, the VCCI suggested that the State establish relevant regional and sectorial economic structures to enhance the efficiency of business operations and bring into full play the competitiveness advantages of each locality.

For that purpose, the restructuring of credit institutions must be implemented synchnorously and consistently in the fields of public investment, state-run enterprises and credit institutions, it said.

The VCCI also recommended that enterprises constantly update the government’s policies to make use of supports, speed up business restructuring, enhance their effective use of capital within their own business strategies, and promote co-operation with others working in the same field to expand markets.

In his speech, VCCI Chairman Vu Tien Loc stressed that developing the domestic private economic sector has been considered a crucial impetus for national economic growth over the past years. However, the sector’s enterprises, especially small- and medium-sized ones, have faced many difficulties in raising the necessary resources for development such as capital, market access and State support mechanisms, Loc said.

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