Vietnam SME resilience critically low: ministry

By Nguyen Lam
Sat, August 5, 2023 | 3:29 pm GMT+7

The reliance of Vietnamese small-and-medium-sized enterprises (SMEs) has tanked in the face of prolonged economic headwinds at home and overseas, Vietnam’s Ministry of Planning and Investment (MPI) said Saturday.

"The resilience of a part of enterprises, especially SMEs, has reached a critical level," it said in a report delivered at a regular cabinet meeting presided over by Prime Minister Pham Minh Chinh in Hanoi.

More pro-business policies are needed to ensure that the nation’s economic recovery proceeds as expected, the report said.

The report also struck several positive notes, saying the country’s July economic indicators were better than in June, with inflation under control and macroeconomic stability maintained.

Vietnam’s index of industrial production (IIP) increased by 3.9% in July against June and by 3.7% year-on-year. The number of newly-registered and re-opened enterprises in July was 20,800, up 34% from a year earlier.

The seven-month consumer price index (CPI) increased by 3.12% year-on-year, the MPI said, adding that the index’s growth continued a downward trend.

Interest rates for both deposits and loans decreased by 1% compared to the end of 2022. The country secured a trade surplus of around $16.5 billion in the first seven months, up 12 times year-on-year.

Enterprises in the country have been facing many challenges, most notably in terms of cash flow and administrative procedures, the report said. The sustained challenges posed by prolonged economic headwinds in the post-pandemic world created pressures on Vietnam’s growth and macroeconomic stability, it added.

A cabinet meeting presided over by Prime Minister Pham Minh Chinh in Hanoi on August 5, 2023. Photo courtesy of the government's portal.

A cabinet meeting presided over by Prime Minister Pham Minh Chinh in Hanoi on August 5, 2023. Photo courtesy of the government's portal.

Prime Minister Chinh said that the entire world has been facing a tough time. He noted that the world was facing food security issues as India, the world’s largest rice exporter, has halted exports of the train; the Black Sea grain deal has collapsed; and world oil prices have hit their peak since April.

The MPI report said that by the end of July, VN93,800 billion (over $3.95 billion) had been disbursed, accounting for more than a quarter of the VND350 trillion ($15.4 billion) post-pandemic stimulus package approved by the National Assembly for the 2022-2023 period.

Of this, 64% was used for reducing taxes, fees and charges; 20% as preferential loans through the Vietnam Bank for Social Policies; and the rest as support for housing rentals and interest rate subsidies.

The MPI proposed a number of growth support solutions including the improvement of institutional issues, removal of difficulties in doing business, drastic simplification of administrative procedures and further improvements in the investment environment.

Efforts should also be made to promote growth drivers like exports, domestic consumption and investments, the ministry said. Its report called for promotion of sustainable tourism, support for businesses in meeting export market standards, provision of non-tax incentives to attract FDI, promotion of public investment, and removal of obstacles for the ailing property market.

Comments (0)
  • Read More
Property heavyweight Sun Group’s affiliate to build $491 mln opera house in Hanoi

Property heavyweight Sun Group’s affiliate to build $491 mln opera house in Hanoi

Sun City Limited Liability Company, an affiliate of Vietnam’s top real estate developer Sun Group, has received a preliminary in-principle approval from local authorities to build a VND12.75 trillion ($491 million) opera house in Hanoi.

Real Estate - Wed, April 30, 2025 | 8:00 am GMT+7

Australian scholar praises Vietnam’s remarkable 50-year transformation

Australian scholar praises Vietnam’s remarkable 50-year transformation

In 50 years since the national reunification (April 30, 1975-2025), Vietnam has transformed from war-devastated developing country to a peacetime country that has attained lower middle-income status, said Prof Carl Thayer.

Politics - Wed, April 30, 2025 | 8:00 am GMT+7

Malaysia remains 9th largest global exporter of high-tech products

Malaysia remains 9th largest global exporter of high-tech products

Malaysia successfully maintained its position as the ninth-largest exporter of high-tech goods out of 143 countries worldwide in 2023, the highest recognition it has achieved in the past decade, national news agency Bernama reported.

Southeast Asia - Tue, April 29, 2025 | 10:27 pm GMT+7

Insights into Decision 768 amending Vietnam's power development plan VIII

Insights into Decision 768 amending Vietnam's power development plan VIII

Prime Minister Pham Minh Chinh on April 15 issued Decision 768 approving Vietnam's Amended National Power Development Plan VIII for 2021-2030, with vision to 2050. Anh Dang, a senior partner at Vilaf law firm, offers an insight into the principal amendments to PDP VIII.

Consulting - Tue, April 29, 2025 | 4:36 pm GMT+7

From loss to profit: steel maker SMC sees stock rally, avoids delisting risk

From loss to profit: steel maker SMC sees stock rally, avoids delisting risk

Vietnamese steel manufacturer SMC Trading Investment JSC (HoSE: SMC) has seen its stock price soar nearly 60% since early April after the company turned its 2024 loss into profit over bad debt provision reduction.

Companies - Tue, April 29, 2025 | 3:45 pm GMT+7

Dairy giant TH plans $234 mln factory in southern Vietnam

Dairy giant TH plans $234 mln factory in southern Vietnam

A subsidiary of Vietnam’s dairy giant TH true MILK plans to develop a VND6.07 trillion ($234 million) factory in the southern province of Binh Duong.

Companies - Tue, April 29, 2025 | 3:19 pm GMT+7

Int’l organizations lower Indonesia’s 2025 economic growth forecast

Int’l organizations lower Indonesia’s 2025 economic growth forecast

Several international organizations in April revised their economic growth forecasts for Indonesia, reflecting concerns over escalating global trade tensions and domestic fiscal challenges.

Southeast Asia - Tue, April 29, 2025 | 2:30 pm GMT+7

Indonesia eyes more partnership with Vietnam in Halal-certified production, cosmetics

Indonesia eyes more partnership with Vietnam in Halal-certified production, cosmetics

Indonesia, a Muslim-majority country, is eager to share its expertise in Halal standards and looks forward to collaborating with Vietnam in sectors such as food processing, cosmetics, tourism, and Halal financial services, said Agustaviano Sofjan, consul general of Indonesia in Ho Chi Minh City.

Companies - Tue, April 29, 2025 | 1:34 pm GMT+7

MSG producer Vedan Vietnam’s 2024 revenue drops 4% to $166 mln

MSG producer Vedan Vietnam’s 2024 revenue drops 4% to $166 mln

Food seasoning maker Vedan recorded a revenue of $166 million in Vietnam last year, down 4% year-on-year, according to the 2024 performance review of the Taiwan-headquartered firm.

Companies - Tue, April 29, 2025 | 11:45 am GMT+7

Vietnam, Japan firms sign deals to develop innovation cooperation ecosystem

Vietnam, Japan firms sign deals to develop innovation cooperation ecosystem

Businesses from Vietnam and Japan signed numerous MoUs aimed at developing a cooperation ecosystem in innovation and high-tech industries on the sidelines of a forum in Hanoi on Monday.

Economy - Tue, April 29, 2025 | 11:31 am GMT+7

Vietnam’s VPBank targets 35% annual credit growth over next 5 years

Vietnam’s VPBank targets 35% annual credit growth over next 5 years

Vietnam’s leading private lender VPBank expects to post annual credit growth of 35% over the next five years after taking over weaker lender GPBank, said VPBank chairman Ngo Chi Dung.

Banking - Tue, April 29, 2025 | 8:17 am GMT+7

Japan seeks to implement 15 energy projects worth over $20 bln in Vietnam

Japan seeks to implement 15 energy projects worth over $20 bln in Vietnam

Japan wants to execute 15 projects worth over $20 billion in Vietnam's energy transition field, said Prime Minister Ishiba Shigeru.

Economy - Mon, April 28, 2025 | 11:07 pm GMT+7

Malaysia highlights roles of ASEAN, BRICS in regional cooperation

Malaysia highlights roles of ASEAN, BRICS in regional cooperation

Malaysian Foreign Minister Mohamad Hasan is scheduled to deliver a speech at a dedicated session themed “The Role of the Global South in Reinforcing Multilateralism,” held as part of the BRICS Ministers of Foreign Affairs Meeting in Rio de Janeiro, Brazil, from April 28-29.

Southeast Asia - Mon, April 28, 2025 | 10:10 pm GMT+7

Singapore negotiates for US concessions on pharmaceuticals, chips

Singapore negotiates for US concessions on pharmaceuticals, chips

Singapore is negotiating concessions for pharmaceutical exports to the U.S. while ensuring it still has access to high-end AI chips from the American market, said Singaporean Trade and Deputy Prime Minister Gan Kim Yong.

Southeast Asia - Mon, April 28, 2025 | 10:03 pm GMT+7

Vietnam’s leading IP builder Idico applies for major bourse listing, targets $100 mln pre-tax profit

Vietnam’s leading IP builder Idico applies for major bourse listing, targets $100 mln pre-tax profit

Idico Corporation, a major industrial park developer in Vietnam, has applied for listing its shares on the Ho Chi Minh Stock Exchange (HoSE) and kept its 2025 business plan unchanged with a pre-tax profit target of VND2.6 trillion ($100 million).

Companies - Mon, April 28, 2025 | 9:53 pm GMT+7

Property giant Sun Group commences work on $1.35 bln spiritual tourism complex in central Vietnam

Property giant Sun Group commences work on $1.35 bln spiritual tourism complex in central Vietnam

Sun Group, Vietnam's leading real estate developer, on Saturday broke ground on its Am Tien spiritual and historical tourism complex project in the central province of Thanh Hoa.

Real Estate - Mon, April 28, 2025 | 9:30 pm GMT+7