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COVER STORY

bility, and 16.7 per cent see declines.
“These numbers show that manufac-
turing sectors remain optimistic about
their business in the first quarter of 2022,”
said Ms. Nguyen Thi Huong, General
Director of the GSO. “This is a good sign
for the recovery of business.”

SUPPORT POLICIES NEEDED
According to a survey by the Ho Chi
Minh City Union of Business Association
(HUBA), most business activities in the
city have become stable since October.
Ninety-six per cent of businesses are already
back to normal production.
Foreign invested enterprises (FIEs)
returned to production the quickest, fol-
lowed by enterprises at industrial parks
and then other businesses.
However, after returning to normal
PHOTO: VIET TUAN operations, most met difficulties in terms
of workers and also capital to prepare raw
materials and investment in 2022. “All
businesses need support policies, including
in capital and tax exemptions and reduc-
SEEKING tions,” said Mr. Tran Viet Anh, Vice Chair-
man of HUBA.
He added that Vietnamese businesses
A WAY OUT import 70-80 per cent of their materials
and pay VAT on these, so expect an exten-
sion to payment times.
After two years of pandemic-induced woes, Vietnam’s Mr. Ky, meanwhile, said that tourism
business community has high hopes for 2022. was considered a spearhead economic
sector and contributed 10 per cent of Viet-
nam’s GDP. In order to support the industry,
ith changes in the Covid-19 adap- also plans to partner with foreign investors he said the Communist Party of Vietnam
tation and prevention strategy, to diversify its products and markets. and the State should adopt a specific recov-
W and especially with commercial According to a survey conducted by ery strategy. “We have many policies at
flights reopening in January, Mr. Nguyen the General Statistics Office (GSO) in the present, but if we don’t implement them
Quoc Ky, Chairman of Vietravel Holdings, fourth quarter of 2021, not only businesses thoroughly it will be difficult to recover,”
believes that Vietnam’s tourism industry in tourism and construction but all busi- he explained. “Vietravel has proposed poli-
will soon be in better shape. “We have plans nesses in manufacturing sectors hope for cies on fiscal, financial, and refund incen-
and targets for 2022 already, with the most a much better new year. tives, and tax exemptions and reductions,
important task being to restructure our Some 45.6 per cent of businesses esti- as well as on restoring infrastructure for
business,” he said. “The market has changed mate that the opening quarter of 2022 tourism, because without infrastructure
and affected all business structures, and will be better than the closing quarter of the tourism sector cannot reopen.”
businesses must change to adapt.” 2021, while 36.1 per cent believe business Ms. Cao Thi Ngoc Lan, Vice President
Vietravel will also change its products will be more stable and only 18.3 per cent and General Secretary of the Vietnam
to adapt to the new market conditions. see more difficult times. Foreign-invested Tourism Association, said the tourism
“We have a long-term strategy for 2022- firms were the most optimistic about pro- industry aims to recover from now to mid-
2025 and 2025-2030, for Vietravel and duction and business, with 83.1 per cent 2022. But this can only be achieved if the
Vietravel Airlines to gradually return to expecting better performance or stability government introduces monetary and fiscal
pre-pandemic business levels,” he went in the first quarter. Rates among State policies with support in cash. “Currently,
on. “We hope for a recovery in the market and non-State enterprises were 82 per about 90 per cent of travel businesses are
after two years of pandemic.” cent and 81.2 per cent, respectively. paralyzed because they had to close, while
Elsewhere in the industrial landscape, In terms of production activity in the 60 per cent of these will find it very difficult
the Viet Dung Aluminum JSC began posting first quarter, 45.4 per cent of businesses to recover,” she said.
growth in the final two months of 2021 forecast an increase in production while She suggested that the government
after being affected by the pandemic for a 17.4 per cent believe it will decline and adopt policies to support each type of
long period. Ms. Bui Phuong Thao Len, 37.2 per cent see stability. travel business, from those that had to go
Market and Marketing Director, hopes the Meanwhile, 41.4 per cent of businesses bankrupt or dissolve to those trying to
market will recover in 2022 on the back of estimate that orders will increase, 16.8 per operate once more. Along with that would
rising investment. “We have begun recon- cent estimate they will decline, and 41.8 be the creation of conditions to welcome
necting with our partners and agencies to per cent estimate they will be stable. Some international tourists, priority for the vac-
prepare for the new year, when investment 37.2 per cent of businesses believe their cination of staff in tourism, and the broader
is forecast to increase,” she said. Viet Dung exports will increase, 46.1 per cent see sta- application of 4.0 technology. %

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