Illustrative image (Photo: VNA) Hanoi (VNA) - More measures and policiesshould be introduced to support enterprises, especially small and medium-sizedenterprises (SMEs), in the context of a growing number of businesses temporarily ceasing operations due to theCOVID-19 pandemic, economists have said.
Figures from the National Database on Business Registrationshow that some 6,553 enterprises withdrew from the market during March, a 55.5percent increase year-on-year. Of these, 2,452 registered to temporarilysuspend their operations, or 78.6 percent more than in the same period of 2019.
Meanwhile, nearly 12,300 new enterprises were establishedduring the month with total registered capital of over 131.3 trillion VND (over5.5 billion USD), down 1.6 percent in number and 2.5 percent in capital year-on-year.
In the first quarter of 2020, the country had 29,711 newly established enterprises, a rise of 4.4 percent year-on-year. This is one of the lowest increases in the number of Q1 newly-established businesses from 2015-2019 (the average increase is 10.9 percent).
During the three-month period, total additional capital in existing enterprises was down23.5 percent compared to the same period of 2019, revealing that enterprisesare afraid of investing more in production and business given the pandemic.
Deputy Minister of Planning and Investment Tran Quoc Phuong said the Governmentis considering issuing a raft of policies to help enterprises stabilise their productionand business activities during these difficult days, particularly measures relatingto extensions on timelines for tax payments and introducing tax reductions.
According to Phan Dinh Thuy, head of the General Statistics Office (GSO)’sIndustry Statistics Department, the GSO has proposed that priority be given to supportingSMEs and household businesses facing difficulties in securing materials forproduction.
Relevant authorities, he went on, should also adopt special policies to supportenterprises operating in agriculture, transport, and tourism, which have been mostaffected by the pandemic.
He added that credit institutions need to ensure they hold adequate capital forproduction and business, especially for seasonal sectors and those facing difficultiesregarding consumption.
Meanwhile, Nguyen Viet Phong from the GSO’s Construction and Investment CapitalDepartment stressed the importance of public investment in promoting growth in theconstruction sector.
He explained that every 1 percent of growth in public investment in the sector contributes0.06 percentage points to GDP growth.
The Government, he continued, has paid due regard to flexiblyoperating monetary policy, interest rates, and exchange rates in accordancewith domestic and international market movements, at the same time harmonizing fiscaland other macroeconomic policies to control inflation, support production andbusiness, and promote economic growth.
Most economists agree that relevant authorities need to focus on othersolutions such as increasing the ability to meet production needs, promotingthe development of the domestic market, meeting the internal demands of theeconomy, and gradually replacing imported goods with domestically-produced goods./.
VNA
