Survey finds declining orders and lack of credit impacting the business sector
A recent survey conducted by the government’s Private Sector Development Committee and VnExpress has found that declining orders, lack of access to credit, and bureaucracy are major hurdles faced by businesses in Vietnam.
The survey of 9,560 business executives revealed that over 82% of businesses plan to scale down or shut down in the remaining months of this year, with 71% intending to reduce their workforce by more than 5%.
The four biggest obstacles faced by these businesses are declining orders, lack of access to low-interest credit, red tape, and the risk of being criminalized for economic activities. They are calling on the government to reduce value-added tax and income tax rates, provide more access to credit, reduce administrative burdens, and negotiate trade deals with more countries.
Around 19,200 businesses have suspended operations every month on average this year, while 19,700 were incorporated or resumed operations.