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
Maintaining market status upgrade a bigger challenge: official

Maintaining market status upgrade a bigger challenge: official

Vietnam's stock market status will be upgraded by FTSE Russell from "frontier" to "secondary emerging" from September 21 next year, but continued reform is critical as the bigger challenge is to maintain the new classification, said a market watchdog official.

Finance - Sat, October 18, 2025 | 1:30 pm GMT+7

HCMC partners with Nasdaq to develop int’l financial center

HCMC partners with Nasdaq to develop int’l financial center

The Finance Department of Vietnam’s southern metropolis Ho Chi Minh City has signed an MoU with the U.S.-based stock exchange Nasdaq on the development of an international financial center (IFC).

Top News - Sat, October 18, 2025 | 11:56 am GMT+7

Vingroup plans $325 mln issuance of international bonds

Vingroup plans $325 mln issuance of international bonds

Vietnam's leading private conglomerate Vingroup (HoSE: VIC) has announced a board of directors resolution to issue $325 million worth of international bonds, with a five-year term and a yield of 5.5% per year.

Companies - Sat, October 18, 2025 | 10:26 am GMT+7

Vietnam raises personal income tax deductions by over 40%

Vietnam raises personal income tax deductions by over 40%

The Standing Committee of Vietnam’s National Assembly, the country's legislature, on Friday approved a resolution on adjusting personal income tax (PIT) deductions, marking a significant increase of over 40% from current levels.

Economy - Sat, October 18, 2025 | 9:11 am GMT+7

EVN subsidiary spreads the spirit of solidarity, compassion

EVN subsidiary spreads the spirit of solidarity, compassion

The employees of National Power Transmission Corporation (EVNNPT) came together in an inspiring display of unity and compassion in October, each donating one day’s salary to support and express solidarity with the people of Cuba - a nation that has long shared a special friendship with Vietnam.

Companies - Sat, October 18, 2025 | 9:00 am GMT+7

Property fever prompts tighter inspection in central Vietnam's economic hub Danang

Property fever prompts tighter inspection in central Vietnam's economic hub Danang

Chairman of Danang city People’s Committee, Pham Duc An, has ordered a comprehensive inspection and audit of land valuation and auction activities to prevent and address market manipulation that could destabilize the local property market.

Real Estate - Sat, October 18, 2025 | 8:00 am GMT+7

Vietnam mulls opening door for private investment in small modular reactors

Vietnam mulls opening door for private investment in small modular reactors

Vietnam’s Ministry of Industry and Trade has drafted a parliamentary resolution that, for the first time, would allow private companies to participate in the development of small modular nuclear reactors (SMRs).

Energy - Fri, October 17, 2025 | 4:37 pm GMT+7

Kido seeks buyer for remaining 49% stake in frozen food affiliate

Kido seeks buyer for remaining 49% stake in frozen food affiliate

Kido Group (HoSE: KDC), a leading food company in Vietnam, has approved a plan to divest the firm's remaining 49% stake in its affiliate Kido Frozen Food JSC (Kido Foods).

Companies - Fri, October 17, 2025 | 4:25 pm GMT+7

Le Ngoc Quang appointed Danang city's Party chief

Le Ngoc Quang appointed Danang city's Party chief

Le Ngoc Quang, a Party Central Committee member and Party chief of Quang Tri province, has been appointed Party chief of Danang for the 2025-2030 term - the highest position in the city, central Vietnam's economic hub.

Politics - Fri, October 17, 2025 | 4:17 pm GMT+7

T&T Group seeks to reshape north-central Vietnam’s urban landscape with major projects

T&T Group seeks to reshape north-central Vietnam’s urban landscape with major projects

Multi-sector conglomerate T&T Group is developing a model eco-urban complex in Ha Tinh province and plans to build a massive 236-hectare urban area in neighboring Nghe An, with an aim to reshape north-central Vietnam's urban landscape.

Investing - Fri, October 17, 2025 | 2:44 pm GMT+7

Toyota plans $359 mln plant expansion in northern Vietnam

Toyota plans $359 mln plant expansion in northern Vietnam

Toyota Motor Vietnam (TMV) plans to invest about VND9.46 trillion ($359.2 million) in the first phase of its plant expansion project in Phu Tho province.

Investing - Fri, October 17, 2025 | 2:09 pm GMT+7

PVI Insurance sees 9-month profit before tax more than doubling

PVI Insurance sees 9-month profit before tax more than doubling

PVI Insurance has reaffirmed its position as the No. 1 non-life insurer in Vietnam, with total revenue increasing nearly 1.4 times in the first nine months of 2025 and pre-tax profit more than doubling year-on-year - surpassing its full-year targets for both revenue and profit.

Companies - Fri, October 17, 2025 | 9:08 am GMT+7

Vingroup to develop 4,600ha coastal urban project in northern Vietnam

Vingroup to develop 4,600ha coastal urban project in northern Vietnam

A consortium of Vingroup (HoSE: VIC) and its real estate arm Vinhomes (HoSE: VHM) will develop a 4,600-hectare coastal urban complex in Ha An ward, Quang Ninh province, following local authorities’ approval of a zoning plan.

Real Estate - Fri, October 17, 2025 | 8:30 am GMT+7

Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesian President Prabowo Subianto has issued a new decree to restart international carbon emissions trading after a four-year hiatus.

Southeast Asia - Thu, October 16, 2025 | 9:23 pm GMT+7

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors of a $2.56 billion LNG-fired power plant in Hung Yen province have proposed delaying the project’s commercial operation schedule by two years due to difficulties securing key equipment.

Energy - Thu, October 16, 2025 | 9:04 pm GMT+7

Vietnam to soon raise taxpayers' personal deduction: official

Vietnam to soon raise taxpayers' personal deduction: official

The personal income tax deduction in Vietnam is "very likely" to increase to VND21.7 million ($823,940) per month, including VND15.5 million (588,530) for the taxpayer and VND6.2 million ($235,410) for each dependent.

Finance - Thu, October 16, 2025 | 6:25 pm GMT+7