Vietnamese small and medium-sized enterprises face multiple difficulties in resuming work and production

According to a report by “Vietnam Economy” magazine on December 17, small and medium-sized enterprises currently account for 98% of the total number of enterprises in Vietnam, with small and micro enterprises mainly accounting for only 1.6% of medium-sized enterprises. Small and medium-sized enterprises have been severely affected by the tightening of epidemic prevention and control and have weak self-recovery capabilities. Pham Huy Hung, vice chairman of the Vietnam Small and Medium Enterprises Association, said that in the past period, tens of thousands of small and medium-sized enterprises have stopped production or disintegrated due to lack of financial support, and only 38-45% of small and medium-sized enterprises can apply for loans. Pham Ngoc Hung, vice chairman of the Ho Chi Minh City Enterprises Association, said that funds for small and medium-sized enterprises have almost dried up, and many are afraid to resume production due to lack of funds and difficulty in making profits. These companies are working hard to transform, but the biggest difficulty is still funds. Not only are they lacking investment funds, but they are also short of funds to maintain production. It is even difficult to guarantee the funds to arrange for workers to resume work. In addition, companies are also facing difficulties with rising production costs. Pham Van Viet, vice chairman of the Ho Chi Minh City Textile, Garment, Embroidery and Knitting Association, said that companies are facing difficulties such as increased inventory costs, raw material prices such as cotton and yarn that have increased by 15-20% compared with the same period last year, and logistics and transportation costs that have remained high. According to the report, small and medium-sized enterprises are becoming a forgotten group and are eager to receive government financial support. The government’s anti-epidemic support funds are only equivalent to 3% of GDP. The scale is too small and can only solve immediate difficulties and social and people’s livelihood problems. It is necessary to increase support for enterprises.