MPI Minister: Opportunities for breakthrough growth

Minister Nguyen Chi Dung was urging businesses and authorities to see the silver lining and turn the crisis to advantage

At the video-conference between the prime minister and businesses today (May 9), Minister of Planning and Investment Nguyen Chi Dung said that the global health crisis will cause the world economy to grow only an estimated 3 per cent in 2020 and puts a lot of difficulties on the business community.

These difficulties include the double challenges of a shortage of input materials and limited output markets for consumption and exporting, especially for sectors participating deep in global supply chains.

The minister also predicted that more mergers and acquisitions deals could take place in the time coming, and local companies could be acquired at a very cheap price.

“The history of the country can prove that Vietnam always finds a way to evolve and post amazing results amidst the most difficulties and arduous circumstances,” Minister Dung said.

He added that the COVID-19 pandemic has built a new consumption trend and brought new business models, contributing to the establishment of new value chains and breakthrough development in certain areas.

Moreover, new free trade agreements like the CPTPP and the EVFTA will serve as an advantage helping Vietnam to join global supply chains, innovate machines, equipment, and technology to reduce costs and improve the competitiveness of local businesses.

“Numerous experts said that this is a good chance because Vietnam has a constellation of many favourable factors for breakthrough development,” Minister Dung confirmed.

The minister added that the most suitable support for businesses would be the simplification of administrative procedures, improving transparency, and synchronising regulations and policies, rather than simple cash support.

“We should implement numerous solutions quickly and in time to enable businesses to seize valuable opportunities for economic recovery and outstanding growth,” he said.

Minister Dung proposed six solutions to support businesses and enable the economy to overcome challenges, including fixing interrupted supply chains, building new ones; maintaining the supply of manufacturing materials, especially strengthening the local supply of materials to replace imports; establishing and developing local supply chains and the traceability of products to export to new markets.

The minister encouraged solutions to stimulate the domestic market by increasing total local demand and facilitating the delivery of essential goods, tourism services, accommodation, retail, and e-commerce. He also advised providing financial packages like VAT reduction or exemption, strengthening public investment, and removing policy barriers.

Additionally, Vietnam should strengthen the promotion of tourism and investment, facilitate digital transformation and the digital economy, and reform administrative procedures to improve the business and investment climate.