Businesses seek to boost economic recovery

By Dat Nguyen   October 12, 2021 | 04:03 pm PT
Businesses seek to boost economic recovery
Prime Minister Pham Minh Chinh (L) meets with business representatives at a meeting in Hanoi, Oct. 12, 2021. Photo courtesy of the Vietnam Government Portal.
Business leaders want to contribute more to the recovery of the economy after the fourth Covid-19 wave wrecked production and slowed growth.

"The business community and entrepreneurs look forward to making intellectual contributions to the overall recovery program at national level as well as in sectors and localities," Pham Tan Cong, chairman of the Vietnam Chamber of Commerce and Industry (VCCI), told Prime Minister Pham Minh Chinh at a meeting Tuesday.

Businesses this year have experienced unprecedented difficulties due to Covid-19. Many companies are facing production and market disruptions, and issues in cash flow and labor, he said.

The process of restoring production and business activities under ‘new normal’ conditions will take years, and therefore businesses expect more support mechanisms and policies from the government, he added.

Chairman of tech firm CMC Corporation Nguyen Trung Chinh expressed his desire for the economy to reopen safely and quickly with favorable conditions for businesses to recover.

The Ministry of Planning and Investment has been tasked with creating an economic recovery plan, to be submitted to the government this month.

Chairman of conglomerate Son Ha Group Le Vinh Son suggested the government immediately implement appropriate solutions on a large scale to restructure the economy in line with global post-pandemic changes.

The government should stimulate domestic consumption and ensure social security.

"I think it is necessary to stabilize fiscal policy and support businesses with adequate capital to overcome difficulties; loosen conditions for businesses to be supported with money through credit packages and to recover after the pandemic."

He also suggested the State Bank of Vietnam manage interest rates flexibly, direct commercial banks to restructure debt repayment terms, postpone and reduce interest rates for loss-making businesses.

The difference between deposit interest and lending interest rates should not exceed 2.5 percentage points, he said.

Deputy Minister of the Ministry of Finance Tran Xuan Ha said that regarding coordination between fiscal and monetary policies, the ministry would work with the central bank to help fund production plans.

One key focus in the coming time is to ensure smooth production and supply chain operation, he added.

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