Enterprises face difficulties, exports plummet

Customs officers of Ho Chi Minh City carry out procedures for export goods. Photo: T.H

Imports and exports in Ho Chi Minh City decreased by nearly 19%

According to statistics of Ho Chi Minh City Customs Department, the total import-export turnover through Ho Chi Minh City ports in the first quarter of 2023 decreased by 18.68% or US$6.51 billion year-on-year to US$28.34 billion. Of which, exports declined 17.92% or US$2.85 billion to US$13.02 billion.

The decrease in trade turnover in the first quarter made the State budget revenue of Ho Chi Minh City Customs Department see a deep decline. Specifically, in the first quarter of 2023, Ho Chi Minh City Customs earned VND31,546.3 billion, reaching 21.64% of the estimate (VND145,800 billion); down 5.75% or VND 1,923.7 billion, from the same period last year.

According to the Ho Chi Minh City Statistics Office, the socio-economic situation in Ho Chi Minh City is still facing many difficulties and challenges and economic indicators are showing signs of a decrease.

In the first quarter of 2023, Ho Chi Minh City recorded nearly 23,000 enterprises leaving the market, nearly double the number of newly established enterprises. Of which, 3,720 ceased operations; 13,628 suspended operations; 249 are in the process of dissolution; and 5,264 have given up their business addresses.

In addition, the scarcity of orders and capital, plus a sharp decline in the purchasing power of consumers, are the reasons why the number of enterprises leaving the market is higher than newly established ones, which has affected exports.

Expecting a credit package of VND10,000 billion

On May 1, 2023, in the Notice of conclusion of Prime Minister Pham Minh Chinh working session with representatives of the Vietnam Timber and Forest Product Association (VIFOREST) and the Vietnam Association of Seafood Exporters and Producers (VASEP), the Prime Minister required more efforts to remove difficulties and obstacles, especially in terms of markets, institutions, taxes, and credit capital for the production, processing and export of forest and fishery products to promote production and business, create jobs, increase income for millions of workers in the field of fisheries and forest products.

The Prime Minister requested to focus on removing difficulties for enterprises in implementing VAT refund-related policies; support associations to effectively organize exhibitions on furniture and aquatic products, promote trade promotion, especially large markets, emerging markets and niche markets; strengthen the inspection and control of law enforcement, ensure the good implementation of traceability of aquatic products and forest products; remove difficulties for seafood enterprises related to regulations on aquatic processing and aquaculture pond wastewater.

Also to develop appropriate measures to combat origin fraud, in aquatic and forest processing and consumption, reducing the risk of being investigated, applied trade measures, origin fraud, and illegal transshipment;

In addition, to cut down administrative procedures, create a favorable investment environment for enterprises, avoid harassment and trouble for people and businesses; digitize and process administrative procedures and control and monitor business activities and collect taxes, fees, and charges.

Furthermore, the Prime Minister requested to continue to improve institutions to remove difficulties for enterprises; promote the implementation of three strategic breakthroughs: human training, institutions and infrastructure development, especially transport infrastructure to reduce logistics and electricity costs to meet the demand of people and businesses.

Promote digital transformation and scientific and technological innovation, innovation in the forestry and fishery industries, considering this as one of the breakthroughs to boost export growth and sustainable development; encourage enterprises to take the initiative to develop, design their own unique products, improve quality and diversity of products meeting many customers’ demand instead of foreign outsourcing orders.

The State Bank of Vietnam is asked to manage credit actively, effectively and appropriately to provide credit capital; develop solutions to reduce loan interest rates to support businesses, especially export businesses; offer credit to production and business and priority areas - including aquatic products and forest products; support seafood enterprises and timber enterprises to access credit.

Moreover, the State Bank is required to continue implementing support policies and preferential policies; research and propose a credit package of VND 10,000 billion to support enterprises in the production and processing of forest and aquatic products in May 2023.