Ministry proposes solutions to promote post-pandemic market recovery hinh anh 1

Participants at the conference. (Photo: VNA)

Hanoi (VNA) - The Ministry of Planning and Investment (MPI) has proposed establishing a special working group of the Prime Minister to remove difficulties for businesses and people affected by the COVID-19 pandemic, and groups of measures to promote post-pandemic market recovery.

Addressing a meeting on August 8 between the Government and representatives from enterprises, business associations and localities nationwide, Minister of Planning and Investment Nguyen Chi Dung mentioned difficulties facing production and business activities of a large number of enterprises in many localities across the country where social distancing measures are being imposed to prevent the spread of COVID-19.

Dung proposed solutions to promote the recovery of the market in the post-pandemic period, saying that the fourth outbreak of COVID-19 has made already vulnerable businesses more difficult than ever when the market shows no signs of recovery, or is recovering very slowly.

Enterprises’ resilience declines 

According to statistics reported by the MoPI, the number of newly established enterprises in July decreased by 34 percent compared to the same period in 2020. In the first seven months of 2021, the number of newly registered enterprises increased by 0.8 percent year-on-year, the lowest rise in the 2016-2020 period.

Meanwhile, the number of firms leaving the market in the Jan-July period surged by 25.5 percent year-on-year. There were more medium and large-sized enterprises which left the market.

Minister of Planning and Investment Nguyen Chi Dung said the data showed that the resilience of businesses is getting weaker and weaker.
The fourth wave of COVID-19 infections has also negatively affected industrial parks (IPs) and export processing zones, especially those in the southern area - the most dynamic economic region of the country, Dung said.

This may lead to the risk of supply chains and large-scale production disruption, thus causing severe impacts on the national economy, he added.

Total demand dropped sharply. The average demand in sectors went down by 40 percent – 50 percent.

The aviation and transport, tourism, restaurant, and hotel industries have been hardest hit by the pandemic, with the demand down 70-80 percent.

Ministry proposes solutions to promote post-pandemic market recovery hinh anh 2Optrontec Vina Co., Ltd in Vinh Phuc province’s Ba Thien 2 Industrial Park. (Photo: VNA)

The revenue of sectors simultaneously decreased sharply. The tourism industry has not generated revenue as restaurants and hotels were paralyzed.

In the market, the deficiency of cash flows has caused difficulties for businesses in maintaining production and business activities.

Awareness and new consumption trends

Businesses faced difficulties in accessing the State's support policies, Minister Dung said.

However, the pandemic has created new consumption trends, he noted, adding that new business models have brought market opportunities and formed new value and link chains.

Businesses need to continue their efforts and proactively have plans to respond to risks, and take advantage of all opportunities to be able to soon stabilize and promote recovery in the coming time, he stressed.

The minister underlined the importance of creating favourable conditions for enterprises to maintain their production and business activities, rationally allocating COVID-19 vaccines, and considering a mechanism to allow enterprises to purchase equipment for COVID-19 self-testing, and accelerating the recognition of vaccine passports.

Ministry proposes solutions to promote post-pandemic market recovery hinh anh 3Authorized forces check vehicles transporting goods in Hau Giang province. (Photo: VNA)

He also asked for measures to ensure smooth, efficient and safe circulation of goods, and non-interruption of supply and value chains, and application of technologies in controlling the movement of vehicles and labourers.

It is necessary to have new policies to help business access supporting loans more easily, and amend policies on trade union fee, road maintenance fee, and electricity prices, and urgently implement policies on rescheduling debt payment, reducing interest rates, corporate income tax, and value added tax, he said.

Attention must be paid to removing difficulties related to labourers and experts, and effectively implementing a policy package to support employees and employers worth about 26 trillion VND (1.14 billion USD), the minister said.

Addressing the conference, Prime Minister Pham Minh Chinh assigned the Ministry of Health to coordinate with relevant ministries and sectors to effectively implement the vaccine strategy, including promoting public-private cooperation and speeding up vaccinations for priority groups.

The Ministry of Planning and Investment will be responsible for giving advice to the Government and the PM to come up with timely solutions to socio-economic development.

The Ministry of Finance must urgently implement tax and fee exemption and reduction solutions in order to quickly support people and businesses.

Meanwhile, the Ministry of Transport was asked to take measures to ensure the circulation of goods./.