Businesses and experts identified challenges at the “2024 Business Forum: Unlocking New Growth Momentum”.
**Many Industries Still Face Obstacles**
Nguyen Quoc Hiep, President of the Vietnam Association of Construction Contractors, reported ongoing difficulties in the construction sector. Opportunities are currently only expanding for major construction companies, particularly those specializing in developing economic infrastructure or building highway projects. In contrast, small and medium-sized enterprises face significant challenges in finding new market opportunities.
Additionally, Hiep highlighted imbalances between accounts receivable and payable in the construction industry. This situation often arises when businesses invest upfront in construction materials, but then encounter difficulties in collecting payment after projects are completed.
Nguyen Van The, President of the Quang Ninh Province Business Association, emphasized significant hurdles in networking and trade promotion, particularly in tourism with China. He cited obstacles in procedures and costs as deterrents for Chinese tourists.
Vietnamese businesses also face disadvantages when showcasing products at trade promotion forums. Partners have reportedly offered to sell Vietnamese products back at lower prices, indicating local companies are struggling to compete.
Investment promotion efforts have also been challenging in Quang Ninh, despite the availability of expansive industrial parks. Additionally, some provinces have not been responsive or proactive in addressing business concerns.
In the wood industry, Ngo Sy Hoai, Vice President of the Vietnam Forest Products Association (Viforest), stated that most wood businesses produce based on foreign designs, resulting in significant price pressures. This arrangement results in high production volumes but low profit margins for Vietnamese companies, highlighting its unsustainable nature.
Government policies designed to stimulate growth, including mechanisms and credit support, have faced implementation challenges related to legal frameworks and enforcement costs. Value-added tax (VAT) refunds continue to pose difficulties in certain localities.
Moreover, Viforest’s Vice President acknowledged that the wood industry’s growth over the past two decades has relied on comparative advantages such as low input costs and labor, but it is time to move beyond these factors.
**Addressing Regulatory Bottlenecks**
Nguyen Manh Than, Chairman and General Director of Ao Vua Joint Stock Company, emphasized the need to resolve regulatory bottlenecks to facilitate business survival and growth.
He highlighted the need to address overlapping and conflicting laws and regulations that hinder businesses. Implementation of existing policies also faces numerous obstacles.
Than stressed the importance of streamlining project approvals, noting that current procedures make it difficult to obtain permits within a reasonable timeframe.
He also highlighted the prevalence of substandard and counterfeit products in the market, which undermines consumer trust. Vietnamese businesses need to develop strategies to differentiate their products and gain market share through superior quality and customer-centric approaches.
Mac Quoc Anh, Vice President and Secretary General of the Hanoi Small and Medium Enterprises Association, called for addressing obstacles to capital access, including issues related to bonds, bank loans, and underutilized fund resources.
Simplifying administrative procedures and enhancing trust among businesses and investors are also critical. This includes improving the availability of skilled labor.
Anh added that the Law on Supporting Small and Medium Enterprises, enacted in 2018, has not yet delivered its intended impact. To address this, the government should foster the growth of large enterprises and industry leaders who can enhance global competitiveness and provide support and mentorship to smaller domestic businesses.
VCCI should strengthen collaboration among industry associations and promote value chain development within Vietnam.
