Workshop seeks to manage business risks in economic downturn

Workshop participants discussed managing business risks and increasing profitability in a challenging time in Ho Chi Minh City on October 17.

Professor John Beh Zad, a member of the academic consultation council from the Paris Graduate School of Management in Vietnam, was invited to speak at the event.

Many countries such as the US, China, and those in Europe are falling into economic recession, he said. Most nations have policies to promote growth, but not to manage risks and economic downturns.

He suggested the governments increase corporate income taxes, special consumption taxes and others when the economy is growing so they can reserve financial resources.

During a depression, governments should support businesses by investing in machines, equipment for manufacturing and domestic consumption programmes, he said. The businesses themselves also needed to learn more about monetary policy and taxes from State banks.

According to unofficial statistics, more than 55,000 businesses in HCM City have gone bankrupt since the beginning of the year.

Given numerous difficulties facing enterprises, local authorities have taken a number of measures to improve the investment climate and worked alongside business players to overcome hurdles.

In addition to simplifying administrative procedures, the city has implemented several programmes to spur local demand, and establish links between businesses and banks.-VNA