The lending interest rate on reduction, macroeconomics with bright signs are favorable conditions for the evolution of small and medium-sized enterprises (SMEs) in 2014. But, many SMEs still worry about consumption market and is seeking measures to overcome challenges.  

Opportunities and challenges

In 2014, the world economy is gradually recovering, creating favorable conditions for trade and investment. Vietnam’s economy is also on the momentum of recovery and stability. FDI capital continues flowing into Vietnam…There are also many positive signs from the Trans-Pacific Partnership Agreement (TPP) that is being negotiated. Besides, Japanese investors are trending to transfer their capital from some other countries to ASEAN ones, especially Vietnam. All will be favorable conditions for the domestic economy in 2014, helping enterprises to expand their consumption market.

Along with the above advantages, SMEs have so far faced many difficulties. To Nguyen Ngoc Son, General Director of Ngoc Son Python-Crocodile Trade-Investment Joint Stock Co. in Thuan An town, the biggest worry of the company and other SMEs is consumption market. It is still difficult for many SMEs to get access to loans, despite the lending interest rate on reduction. Apart from the lack of investment capital and weakness of production technologies, the linkage between farmers and enterprises is still not high…All have greatly affected SMEs’consumption market…

Thai Van Anh Hung, Director of Hung Thai Co.Ltd. said that his company has encountered many difficulties from continuous fluctuations in the price of materials for some products. Meanwhile, consumption markets at home and abroad are unstable. In the face of the difficult situation, the company has continuously improved product patterns under the market trend.

Measures promoted

In the face of the current challenges, many SMEs have selected a deliberate way for sustainable development.

Mr.Son said that the company has deliberated about the set targets that are based on the real situation of the company and market. The company has signed short-term contacts with partners, ensuring a supply source of input materials for them. This is also a solution for the company to hold fast to its market share and prestige towards sustainable development.

Whilst, Nguyen Quang Vu, Director of Nam Binh Co. stated: “The company will continue spending a great source on in-depth development by renovating equipment and technologies, maintaining the quality of products, constantly improving production and competitive ability at home and abroad”.

Together with the efforts by themselves, many SMEs would like to have stability in relevant policies. Authorities at all levels also need to make a coherence between producers and consumers to decrease intermediate costs, helping lower product prices. This will contribute to stabilizing market prices. Besides, they need to effectively implement trade promotion programs in the domestic market; closely tighten control over the quality, origin of commodities to prevent fake and poor quality ones; boost and enhance the effectiveness of dissemination of relevant information to help enterprises avoid risks when carrying out export contacts...All will help many SMEs bring into play their advantages to overcome challenges.

Reported by Phuong An-Translated by K.T