More than 70,000 businesses suspend operations over 9 months

Statistics show a lack of order has forced many businesses to either cut down on the labour force or close workshops. Many stores and small business households have been forced to close the door due to a lower purchasing power and no profit.

With more than 70,000 businesses suspending their operations and more than 31 million employees affected, it will pose a great challenge for Vietnam, especially SMEs, say experts.

Dr. Nguyen Van Than, President of the Vietnam Association of Small and Medium-sized Enterprises, notes the Government has introduced policies to help businesses and employees maintain production and ensure people's lives and health.

However, SMEs, due to their limited financial capacity and governance, still find it difficult to weather the COVID-19 crisis, stresses Dr. Than.

He expresses his hope that the 13th Business Cooperation, Connectivity and Development Forum in the northern region, held on October 4, will offer experts and businesses a chance to make recommendations to the Government so as to help businesses iron out snags and maintain production.

Nguyen Thanh Bien, Vice President of the Business Association of Hoa Binh province, suggests the government should work out strategic solutions to support businesses when the global economy is still bogged down in the crisis.

“Businesses that have either suspended operations or scaled down production are in dire need of the government’s economic relief packages,” Bien says. “A reduction in corporate income tax does not help them much in practice.”

The government is drafting second economic relief packages to help businesses surmount difficulties caused by the COVID-19 pandemic. The first relief packages are said not to have brought about expected results.