(VOVWorld) Vietnamese enterprises made a great effort to survive difficulties last year. In the midst of continuing challenges this year, government policies are expected to ease their burden.

Small businesses find it difficult to access bank loans. Photo: Internet

Most enterprises support the government’s policy to control inflation, stabilize the macro-economy, restructure the economy, and renew the growth model, according to a survey conducted by the Vietnam Business Forum Secretariat late last year. The survey gave a score of 2.45 out of 4 to measure Vietnam’s business environment this year compared to 2.88 last year. But most of the surveyed enterprises were positive about the country’s long-term economic outlook. Close to 69 percent of respondents said they would expand their business in the next few years. Pham Hong Viet, owner of the Footwear Export Company, hopes the government will make its monetary policy flexible for enterprises. “Import-Export Companies are paying 7 to 7.5% interest on loans but I believe 6% is more reasonable for foreign currency loans,” he said.

2012 will be particularly difficult for small and medium-sized enterprises because the government will continue to tighten monetary policy. Small and super-small businesses are struggling desperately to find sources of capital. To Hoai Nam, Vice Chairman and Secretary General of the Small and Medium-sized Enterprises Association, says that the Association has set up an interest-subsidy fund to assist small businesses with land rent, human resource development, credit and technology. “We aim for a policy that will help clear barriers for small and medium-sized enterprises and provide them with financial support to carry out their business plans. The Ministry of Planning and Investment and the State Bank are working on this policy, which we hope will be ready in the first quarter of this year,” Nam said.

Professor Nguyen Mai, former Vice Chairman of the State Committee for Co-operation and Investment, believes credit policy needs to be flexible and relevant to the enterprises wanting to borrow money. Regarding tax policy, the Vietnam Chamber of Commerce and Industry (VCCI) recently asked the government to amend 16 laws to help businesses grow. “VCCI has proposed amendments to the laws on Investment, Enterprises, Tax, Procurement, and Land, based on the recommendations of businesses. Once these laws are amended, there will be policies to help enterprises weather economic challenges this year,” Professor Mai added.

2012 promises new opportunities for enterprises since the government took steps to reduce inflation, which will eventually bring down interest rates. The government also intends to reduce or defer income tax for businesses and simplify administrative procedures. Economists believe even more innovative policies are needed to help economic groups and enterprises make a great leap forward.

Thu Hang