Vietnam's economic outlook is better than in previous years. Cao SyKiem, President of the Vietnam Small- and Medium-Sized EnterprisesAssociation, spoke with the Thoi Bao Kinh Te Vietnam (Vietnam EconomicTimes).
*In January, the industrial production index rose byonly about three percent compared with the same period last year. Whywas this?
Difficulties facing small and medium enterprises (SMEs)in 2013 are still lingering into the new year. One month is too shortfor enterprises to develop steam for better production.
Productionand consumption of commodities remain sluggish while enterprises thatare on the verge of bankruptcy or are scaling down production are stillhanging on for various reasons.
Many companies are facing baddebts, locking enterprises and banks into a stalemate. Although, in2013, the Government adopted many measures to lessen difficulties forenterprises, the results were not up to our expectations.
A hugevolume of products has piled up in warehouses due to low consumption. Asa result, a vicious circle appeared, affecting the business circle andthe banks. This had led to bad debts. However, against the 2013 economicbackground, I'm confident that this year's economic picture will bebrighter.
*That means you've seen a light at the end of the tunnel?
Yes!Not only I, the business community also agrees with my confidence. Inhis new year message, Prime Minister Nguyen Tan Dung laid stress on theimportant role of the ownership rights of the people and enterprises inthe nation's economic development.
He expressed hisconfidence that the strong institutional restructuring would serve as alevel to give a push to the business community to restore theirproduction. State-owned enterprises and SMEs should be treated equally.This is essential to help them adopt a pro-active attitude.
Fairnessbetween all economic entities will breed healthy competition and helpthem erase past differences and rectify weaknesses. If these conditionsare met, no doubt we'll be able to overcome the present difficulties andchallenges.
I also think that lessons learned in 2013 will helpenterprises confidently deal with the challenges they face. In addition,news from the macro economy should serve as a driving force forVietnamese enterprises to recuperate.
Development orientationsand measures adopted by the Government in 2013 continue to help solvesome of the bottlenecks in the national economy, particularly thebad-debt problem and balancing supply and demand.
A bright picture of the 2014 economy will act as a prerequisite for our economic development in 2015 and the following year.
Idon't think there will be major breakthroughs in the 2014 economy,however, I'm confident the bright spots will overshadow the black spots.
*Do you think the Government should continue to support the business community?
TheGovernment should support enterprises through specific mechanisms orpolicies while avoiding deep interferences in the market that may havenegative impacts on their production. The Government should providefavourable conditions for enterprises to access credit to restoreproduction.
Although in 2013, the official yearly interest rateset by the State Bank of Vietnam was between 7-9 percent, there were notmany enterprises taking advantage of the low rates.
One of theGovernment's resolutions this year is to step up the equitisation ofState-owned enterprises (SOEs). Do you think the programme will becarried out according to plan?
Prime Minister Nguyen Tan Dung hasset a target to equitise about 500 State groups and Corporations fromnow till the end of 2015.
Structural reform of the SOEs,including corporations, began years ago. However, the results arelimited. One of the key objectives of the reforms is to gradually reducepreferential policies and monopolies given to SOEs so that they willuse State capital much more efficiently.
All in all, seriousstructural reform is an effective level to help the national economy toescape sluggishness not only this year and in following years.-VNA
*In January, the industrial production index rose byonly about three percent compared with the same period last year. Whywas this?
Difficulties facing small and medium enterprises (SMEs)in 2013 are still lingering into the new year. One month is too shortfor enterprises to develop steam for better production.
Productionand consumption of commodities remain sluggish while enterprises thatare on the verge of bankruptcy or are scaling down production are stillhanging on for various reasons.
Many companies are facing baddebts, locking enterprises and banks into a stalemate. Although, in2013, the Government adopted many measures to lessen difficulties forenterprises, the results were not up to our expectations.
A hugevolume of products has piled up in warehouses due to low consumption. Asa result, a vicious circle appeared, affecting the business circle andthe banks. This had led to bad debts. However, against the 2013 economicbackground, I'm confident that this year's economic picture will bebrighter.
*That means you've seen a light at the end of the tunnel?
Yes!Not only I, the business community also agrees with my confidence. Inhis new year message, Prime Minister Nguyen Tan Dung laid stress on theimportant role of the ownership rights of the people and enterprises inthe nation's economic development.
He expressed hisconfidence that the strong institutional restructuring would serve as alevel to give a push to the business community to restore theirproduction. State-owned enterprises and SMEs should be treated equally.This is essential to help them adopt a pro-active attitude.
Fairnessbetween all economic entities will breed healthy competition and helpthem erase past differences and rectify weaknesses. If these conditionsare met, no doubt we'll be able to overcome the present difficulties andchallenges.
I also think that lessons learned in 2013 will helpenterprises confidently deal with the challenges they face. In addition,news from the macro economy should serve as a driving force forVietnamese enterprises to recuperate.
Development orientationsand measures adopted by the Government in 2013 continue to help solvesome of the bottlenecks in the national economy, particularly thebad-debt problem and balancing supply and demand.
A bright picture of the 2014 economy will act as a prerequisite for our economic development in 2015 and the following year.
Idon't think there will be major breakthroughs in the 2014 economy,however, I'm confident the bright spots will overshadow the black spots.
*Do you think the Government should continue to support the business community?
TheGovernment should support enterprises through specific mechanisms orpolicies while avoiding deep interferences in the market that may havenegative impacts on their production. The Government should providefavourable conditions for enterprises to access credit to restoreproduction.
Although in 2013, the official yearly interest rateset by the State Bank of Vietnam was between 7-9 percent, there were notmany enterprises taking advantage of the low rates.
One of theGovernment's resolutions this year is to step up the equitisation ofState-owned enterprises (SOEs). Do you think the programme will becarried out according to plan?
Prime Minister Nguyen Tan Dung hasset a target to equitise about 500 State groups and Corporations fromnow till the end of 2015.
Structural reform of the SOEs,including corporations, began years ago. However, the results arelimited. One of the key objectives of the reforms is to gradually reducepreferential policies and monopolies given to SOEs so that they willuse State capital much more efficiently.
All in all, seriousstructural reform is an effective level to help the national economy toescape sluggishness not only this year and in following years.-VNA
