Good policies will restore businesses confidence

Prof. Dr. Pham Hong Chuong, Rector of National Economics University

After the Covid-19 pandemic, in your opinion, what difficulties and challenges are Vietnamese businesses facing?

During the Covid-19 pandemic, most Vietnamese businesses have made great efforts to develop. Simultaneously, the Government has also taken many measures and policies to support businesses, from fiscal policy to monetary policy.

However, difficulties are expected to continue. Not only the pandemic still exists, but the consequences of the disruption of the global supply chain due to political conflicts, especially the conflict between Russia – Ukraine continuously create many challenges for businesses.

Meanwhile, the resources of Vietnamese enterprises have been eroded during the two years of the pandemic. Support policies have not really nurtured the enterprise’s resources effectively.

Around the world, the burden from the Covid-19 pandemic is shared by many governments with businesses in many ways; they may even accept an increase in public debt to help businesses have resources and time to recover.

Meanwhile, in Vietnam, businesses not only have difficulties from the inside as mentioned above, but also have a hard time accessing capital due to many objective and subjective reasons. Therefore, many units are lacking confidence in the future and recovery and development. If many difficulties are accumulated at one time, it will be difficult for Vietnamese enterprises to cope, leading to the risk of seriously affecting growth and development.

What is the solution to the above problems, sir?

Of course, if there are problems, they must be solved. We need to have specific studies to assess the responsibilities of businesses, investors, and state agencies to complete legal policies quickly and effectively. Good policies will restore businesses’ confidence and help them find growth opportunities in challenges.

At the International Scientific Conference “Contemporary Issues in Economics, Management, and Business” in 2022 (CIEMB 2022) recently organized by the National Economics University, international experts recommended many solutions to provide a foundation and support for strategies to promote global growth and sustainable development. In particular, they said that Vietnam needed to have solutions to diversify the market and minimize the risk of breakage in the production chain.

Besides, in the medium and long term, Vietnam also faces major challenges related to climate change, uncertainties affecting trade, and Vietnam’s growth prospects. Therefore, the key to solving these problems is to continuously accelerate institutional reform, and establish a clearer hierarchy of authority that links to national strategies and plans.

You mentioned the difficulty of capital sources for businesses, in your opinion, how to solve this problem?

Currently, most Vietnamese enterprises have relied on capital from banks, so solving capital flows from banks should be the first priority and should be resolved soon. We have talked a lot about loosening the credit growth limit (room), but this needs to be based on the specific situation of each bank, with an assessment of policy information on the credit situation of each bank.

However, in the current context, room expansion is difficult to implement. Besides, capital flows coming from bonds and stocks are more complicated, and management agencies need time to settle, and then create safety for the system.

Thank you, Sir!