A survey by the Dong Nai Business Association revealed most businesses have been struggling with weak consumer demand. — Vietnam News
DONG NAI: Businesses are in urgent need of additional support in the face of ongoing challenges in 2024, as well as the implementation of green production and digital transformation, say industry experts and insiders.
Many businesses have voiced concerns over a lack of information and support policies despite growing interest in the business community for the promotion of green production and digital transformation.
A survey by the Dong Nai Business Association, home to a large number of both domestic and foreign companies in southern Vietnam, revealed most businesses have been struggling with weak consumer demand, which has resulted in reduced working hours for workers, especially in export-oriented companies.
They said complicated administrative procedures, regulations and implementation guidelines hindered their ability to access the Vietnamese government’s various support benefits.
For example, the country’s fuel market, despite experiencing severe disruption in 2023, had been operating without significant support policies, which left retailers with close to zero discounts since the beginning of 2022.
To make matters worse, regulations often overlap and create unnecessary hurdles for businesses instead of helping. For example, under a decree on fire prevention and fighting regulation, businesses were told to implement new firefighting plans over existing ones, which led to additional compliance costs for many.
Nguyen Minh Chau, vice-chairman of the association, called on the government to simplify administrative procedures and grant businesses easier access to credit.
At the same time, there should be additional directives to help ministries and other governmental bodies to quickly amend and adjust regulations that are no longer suitable or beneficial to industries, especially fuel trading and retailing, to avoid and minimise market disruption.
The business community also called for greater support from provincial governments regarding access to capital, interest rates, tax exemptions and reductions in fees, as well as additional trade and investment promotion events.
They said such events could help connect businesses with potential investors, transfer technological know-how and attract much-needed capital.
Deputy chairwoman of the Dong Nai’s Provincial People’s Committee Nguyen Thi Hoang said in 2024, businesses in the province would likely face difficulties due to input-material shortages, rising fuel prices, and increased transportation costs.
She said the province’s top priority this year would be to provide businesses with more support mechanisms and policies, including more streamlined administrative procedures and timely assistance for all business needs. — Viet Nam News/ANN
