More than 80% of businesses are negative about their business prospects by the end of 2023

DNHN - According to a report by the Research and Development Board of the Private Economy, 71.2% of businesses still in operation in 2023 are projected to reduce their labour force by more than 5%, with 22.2% reducing their workforce by more than 50%.

The Private Economic Development Research Board (Board IV, under the Prime Minister's Advisory Council for Administrative Procedure Reform) has just sent Prime Minister Pham Minh Chinh the survey results and receipts for 9,556 businesses. "Enterprises are experiencing a particularly difficult time."

In the remaining months of 2023, 82.3% of businesses intend to downsize, suspend operations, or cease operations altogether. According to the report sent to the Prime Minister by the committee's chairman, Mr Truong Gia Binh, 10.9% of enterprises plan to cease operations or wait for dissolution; 12.4% are expected to suspend business; 38.5% are anticipated to drastically reduce their operations, and 20.5% are anticipated to reduce their operations only slightly.

Among businesses still in operation in 2023, 71.2% are projected to reduce their labour force by more than 5%, with 22.2% reducing their labour force by more than 50%. It is anticipated that 81.3% of businesses will reduce revenue by more than 5%, with 29.4% of businesses reducing revenue by more than 50%.

In this context, business confidence in the macro economy and industry economy is particularly low. According to Board IV, up to 81.4% of surveyed businesses have a negative/very negative outlook on Vietnam's economic prospects for the remainder of 2023.

Only 4.2% of businesses surveyed received very positive/positive feedback. Similarly, up to 83.7% of businesses rated the economic outlook for their industry in 2023 as negative/very negative, with 29.6% rating it as extremely negative. And in this overall "dark" picture, construction industry enterprises; micro, small, and medium-sized enterprises; non-state enterprises; Ho Chi Minh City businesses have a lower rating.

In a report sent to the Prime Minister, Board IV identified four groups of enterprises' greatest difficulties and challenges. The difficulty of orders ranks first (59.2%). The second difficulty is gaining access to loans (51,1%), followed by administrative procedures and compliance with the law (45%) and the possibility of criminalising economic transactions (31,1%).

According to Board IV, the current difficulties facing Vietnamese businesses stem not only from the difficult cycle of the global economy but also from internal issues.

This is an enormous challenge, but it also presents the government with great opportunities to implement radical reforms that will improve national competitiveness and economic output over the long term.

Particularly with the orientations and priorities that credible international and domestic organisations and experts have researched and recommended, such as: promoting public investment to "pump money" into the economy in the context of difficulties, focusing on improving the quality of important national infrastructure, and focusing on connecting infrastructures between existing economic centres and neighbouring communities to create opportunities to attract tourists. A new generation of private investment and FDI investment.

In addition, invest heavily in improving the quality of higher education towards modernity and vocational training towards adaptability, meeting practical needs, to enhance the quality of human resources and thereby boost productivity. labour.

Promote vigorously the development of a digital government, data-based governance, and a modern, disciplined, customer-focused, efficient, and transparent administration.

Develop substantive, targeted, and focused policies to support the private sector. Changing the economy to be sustainable and circular.

P.V (t/h)