Domestic enterprises elevate potentials to develop

In the context of the global economic slowdown and inflation, domestic enterprises have actively responded and found solutions to maintain production, business and development. Opportunities and challenges are intertwined and businesses must restructure themselves to get through the turbulence.

Taking care of each purchase order

In the last days of the year, we visited a number of electromechanical enterprises to witness the efforts and the will to overcome difficulties. Trinh Thi Hong Chau - Director of Kim Chung Mechanical Company received us with emotions as difficulties still surrounded. “Since the outbreak of the epidemic, small and medium-sized enterprises have faced great obstacles due to broken supplying chains, higher prices of raw materials and freight, etc. However, the company has actively and flexibly sought out solutions for many sources of raw materials to ensure production and find more consumption markets. We still do our best to fulfill purchase orders. Although the world economic situation is complicated, the company still stands firm to continue to develop," said Chau.

Luu Tri - General Director of Nghe Nang Co. Ltd. in Thuan An city shares about the direction of businesses in hard times

The thing that Chau felt the happiest about in the current situation was receiving the sharing and creating conditions of all sectors and levels, especially the trade industry and Tan Uyen town, where the company is located. The company actively innovates technology and improves product quality to meets strict requirements of European and Japanese customers. Along with that is the efforts and hard work of workers, sharing difficulties with customers. Business owners together with the company overcome the time of hardship.

According to Chau, the most difficult thing in the last months of this year was that small and medium-sized enterprises in the province faced many barriers due to lack of capital resources. Recently, the government offered a policy of loosening the credit room to support businesses to maintain and restore production, which has helped reduce difficulties to continue to grow well.

Domestic enterprises also expected the province to organize on-the-spot trade promotions for each industry to connect and supply products for FDI enterprises. Currently, FDI enterprises in Vietnam are also looking for domestic sources of raw materials to reduce transportation costs and take initiative in production. Domestic enterprises whose products are input materials for production of FDI enterprises with quality, quantity and competitive prices will easily find partners.

Many domestic enterprises make great efforts in improving product quality and stably maintaining production and business activities in the direction of green, taking technology, and maintaining the reputation of Vietnamese brands. Luu Tri - General Director of Nghe Nang Company Limited in Thuan An city, said that in difficult times, the company adhered to the program of "Vietnamese people prioritize to use Vietnamese goods", enterprises understand that this is one of the important solutions contributing to the sustainable development of the domestic market through building a Vietnamese consume culture. At the same time, it is the driving force for enterprises to produce Vietnamese products of high quality and competitiveness, meeting the needs of domestic consumption and export. In 2022, Nghe Nang Co. Ltd. regularly participated in the organization of consumer goods fairs, bringing to Vietnamese consumers good products at competitive prices," added Luu Tri.

Increased predictability

Vo Tan Thanh – Deputy President of the Vietnamese Chamber of Commerce and Industry (VCCI) pointed out the difficulties of 2023 that businesses need to recognize and anticipate. According to Thanh, a quick survey by VCCI on production and business prospects of enterprises conducted in Ho Chi Minh city and some southern provinces and cities recently recorded that 9% of surveyed enterprises affirmed increase orders, 68% reduced orders and 23% of unclear production situation in the near future.

“For the above figures, the production and business situation of enterprises is not positive in the last month of 2022 and is expected to last until at least the end of the first quarter of next year. The unpredictable fluctuations of the market make it difficult for businesses to plan production, business and use of labor," said Vo Tan Thanh.

Financial expert Dr. Dinh The Hien said that difficulties and challenges are the common situation of the whole world, but Vietnam still has certain opportunities. According to the observation from September to December 2022, the government, the State Bank and the Ministry of Finance are gradually controlling the current difficulties such as high interest rates, credit jams, etc., and policy that is unstable of how capital is used to step by step flexibly control without causing shocks like the 2011-2012. Dinh The Hien also forecast that interest rates will cool down in the first quarter and return to stability by the end of the second quarter of 2023. Production and business enterprises will have increased credit sources with good interest rates from the second quarter onwards. He said that the domestic economy would reduce difficulties from the second quarter of 2023 and have positive growth from the third quarter with the effect of public investment and financial stability.

Reported by Tieu My – Translated by Vi Bao