Young entrepreneurs from Hanoi and Nam Dinh Province lamented at a seminar in Ho Chi Minh City yesterday that companies are compelled to borrow from various sources at exorbitantly high interest rates when banks fail them.
The seminar was organized by the Vietnam Young Businessmen Association to discuss ways to stabilize the macro economy and channel a new direction for businesses in the current economic turmoil.
A wide range of obstacles confronting businesses were discussed at the seminar such as high interest rates, skyrocketing raw material costs and barriers in accessing bank loans. All these problems have led several companies to the edge of bankruptcy or slowed production.
Most present at the seminar said that Government Resolution 11 has partiality curbed inflation, stabilized macro economy and ensured social welfare as was its strategy.
However, much needs be done before the Resolution can facilitate business growth and development. Most participants unanimously agreed that the Government should adopt more flexible measures to implement the resolution.
Specially, relevant authorities should give priority to medium and small businesses and capital incentives to export establishments. Besides, the Government should have specific solutions to adjust tax policies to facilitate business operations.
Many entrepreneurs proposed that the Government extend the time-limit to pay back value added tax without applying interest. Chairmen of provincial people’s committees should be made responsible for business taxation.
New start up businesses should be supported to replace those gone bankrupt.
Public expenses should be carefully monitored in state-owned corporations and groups. The economy too needs restructuring for effective public investment and mobilizing of capital resources for businesses in the long run.
The seminar concluded with the Vietnam Young Businessmen Association recording the minutes and pledging to submit all opinions of the entrepreneurs to the Government for further action.