Business sector hit by declining orders, lack of credit: survey

Over 82% of businesses plan to scale or shut down in the remaining months of this year, the survey of 9,560 business executives at the end of April by the government's Private Sector Development Committee and VnExpress found.

Some 71% want to reduce their workforce by more than 5%, with 22% seeking to cut it by half, and 81% have a negative outlook on the economy this year.

They said the four biggest problems they face are declining orders, lack of access to low-interest credit, red tape, and risk of being "criminalized for economic activities."

They want the government to reduce value-added tax from 10% to 8% until the end of 2025.

The government is seeking the National Assembly’s approval to cut the rate for this year.

They also want the income tax rate of 20% to be reduced to 5-10% for exporting companies and more access to credit, especially for key manufacturing sectors.

Inspections of businesses should be done once a year at most, no further tax and administrative burdens should be placed on them and business relationships should not be criminalized, they said.

They want the government to negotiate trade deals with more countries to reduce dependency on existing markets.

Around 19,200 businesses have suspended operations every month on average this year, while 19,700 were incorporated or resumed operations.