A review report on the corporate sector’s performance in the first six months released by the Vietnam Chamber of Commerce and Industry (VCCI) in Can Tho at a seminar Can Tho City last week said 55% of companies in the region met less than half of their profit targets for the year.
The report also showed that a mere 4.5% of businesses enjoyed positive growth against the year-earlier period while 37.5% reported flat business results.
Nguyen Thi Thuong Linh, general secretary of the Mekong Delta Business Association and deputy director of VCCI Can Tho, attributed the poor performance of local firms to the shrinking domestic demand and the negative impact of shrinking export markets as shown by the report.
“A number of hindrances such as unqualified labor, rising production cost, difficult access to bank loans, poor traffic infrastructure, lack of market information and outdated technology had impacted on businesses,” Linh added.
Most local firms projected the situation would worsen until the end of this year.
Given the economic situation in Vietnam this year, well-known economists Pham Chi Lan and Le Dang Doanh said at the meeting that businesses might run into more woes even though the Government has taken numerous pro-business measures including restructuring State-owned enterprises and banks, and offering preferential loans to businesses.
The two economists noted Vietnam’s economy is heavily dependent on the Chinese economy.
Danh said Vietnam imported over 50% of total fabric needs and 80% of apparel accessories from China while it exported 40% of its rice and 50% of its rubber to the northern neighbor.
Meanwhile, Lan mentioned the local agricultural industry also relies on China’s animal feed, fertilizer and other agricultural derivatives.
Đăng ký: VietNam News
