The Story Behind the Mass Exodus of Businesses from the Market
Amidst Vietnam’s economic struggles with inflation, recession, and global supply chain disruptions, Vietnamese businesses, particularly SMEs, are facing significant challenges. With consumers tightening their belts and reducing spending, and startup investment deals dwindling, the competition is fierce. Many SMEs are struggling to stay afloat, resulting in a wave of businesses withdrawing from the market.
According to statistics from Vietnam’s General Statistics Office, over 172,000 businesses exited the market in 2023, a 20.5% increase compared to 2022. The trend continued into 2024, with 86,400 businesses withdrawing in the first four months, a 12.2% rise from the same period last year.
Most of these businesses had a short operational history and were small-scale enterprises. SMEs often play a supporting role in providing services to larger companies, so when those companies cut costs, the ripple effect is felt by the smaller businesses. To weather this economic storm, SMEs must find new avenues for growth, restructure, and pivot their development strategies.
The Secret to SMEs “Riding the Waves and Soaring High”
One way for SMEs to overcome these challenges and move towards sustainable development is to adapt and evolve. Despite the economic downturn, the e-commerce industry is booming. Vietnam’s retail e-commerce revenue grew by 25% in 2023 compared to 2022, reaching $20.5 billion. Businesses that recognize this opportunity and quickly adapt to meet market demands will thrive.
Embracing digitalization and leveraging technology to support business operations is key. As of September 2023, 161,000 SMEs had utilized the SMEdx program, indicating the urgency of digital transformation. Investing in technology for data management, online marketing, and customer service will enhance SMEs’ competitiveness, product value, and brand influence.
Digital transformation is the gateway to sustainable development for SMEs.
Accessing and utilizing capital efficiently is crucial for implementing adaptation strategies. A stable, timely, and favorable source of capital will enable SMEs not just to maintain operations but also to expand and innovate. Eximbank’s E-Fast credit package offers a perfect solution for SMEs in this context, with a credit limit of up to VND 5,000 billion and specialized benefits and simplified processes.
E-Fast boasts optimal features such as a credit limit of up to VND 15 billion per customer, a 4-hour response time for loan applications, and an attractive interest rate of 5.25%/year fixed during the promotional period, applied according to the loan term. It is an ideal solution for businesses facing capital shortages and in need of short-term loans to address internal difficulties and accelerate business growth.
E-Fast is considered the perfect loan package for businesses in this context.
Beyond the attractive credit limit and interest rate, E-Fast also optimizes the loan application process, making disbursement simpler and faster than ever. Additionally, business owners receive a complimentary combo of a premium account number and free online transactions when opening an account with Eximbank, facilitating a strong business presence, efficient financial management, and seamless daily operations.
The most extensive bribery case ever in Thanh Hoa: Numerous suspects prosecuted for “Giving and Receiving Bribes”
The Provincial Security Investigation Agency (PSIA) of Thanh Hoa province announced on January 31st that it has made the decision to initiate a prosecution against 23 individuals in connection with the offenses of “Accepting bribes” and “Giving bribes” as stipulated in Article 354(3) and Article 364(2) of the Criminal Code.
Accelerating disbursement of the 120 trillion VND credit package for social housing
Deputy Prime Minister Trần Hồng Hà has recently issued directives regarding the implementation of the 120,000 billion VND credit package for investors and buyers of social housing, workers’ housing, and projects for the renovation and construction of apartment buildings.
“Prosecution of government officials, land registration officers, and tax department employees in the largest bribery case ever”
The Thanh Hoa Police Investigative Agency has initiated legal proceedings against 23 individuals involved in the crimes of “Bribery” and “Receiving bribes”. This is the largest bribery case in terms of the number of suspects ever discovered and apprehended by the Thanh Hoa Police.
Mobile World achieves revenue of VND118,000 trillion: TVs, tablets, and phones all decrease by 10% – 50%, while one product grows in both quantity and revenue.
Mobile World Investment Corporation (MWG) has recently announced its 2023 business results. According to the report, the company’s consolidated revenue reached over 118 trillion Vietnamese dong, equivalent to 89% of the revenue in 2022.
