Statistics from functional agencies reveal that in the initial months of the year, over 30,000 enterprises have initiated dissolution or temporary halt of operations. This phenomenon is not novel, as approximately 143,000 enterprises shuttered in 2023, with projections indicating a further escalation to 150,000 in 2024. While new enterprise formation persists, the underlying economic constraint remains unabated.
Market observations indicate that numerous retail chains and manufacturing entities, including FPT Retail, The Gioi Di Dong, Canifa, Owen, Rang Dong Plastic, and Dien Quang, have been compelled to consolidate branches or curtail production scales due to dwindling revenues.
“Despite a marginal rise in purchasing power, consumer cost-cutting persists. Escalating raw material costs, coupled with burgeoning operational expenditures such as labor and logistics, impose a heavy burden on enterprises”, noted Chairwoman Ly Kim Chi of the HCMC Food and Foodstuff Association.
HCMC businesses face significant financial pressures, with loan interest rates soaring to 12 percent. Following US tariff announcements, banks tightened credit for affected manufacturers, leading to capital shortages and forcing businesses to reduce production and lose market share. This dual challenge severely impacts their operational stability.
Manufacturing and commercial sectors, especially retail, tourism, and finance, are under continuous pressure. Export-oriented industries like electronics and steel, though not directly hit by US tariffs, suffer from reduced competitiveness and anti-dumping investigations. These factors compound export threats, highlighting the widespread economic challenges faced by Vietnamese businesses.
According to the Trade Defense Department, by the end of 2024, Vietnamese exports had faced approximately 273 trade defense investigations across 25 import markets, with the US imposing the most extensive trade defense measures. The investigated commodities span a broad spectrum, from agricultural to industrial products, augmenting export costs and heightening the risk of order reductions.
A feasible solution proposed by the business community advocates for a reassessment of domestic market exploitation opportunities. Data from the General Statistics Office indicate that Vietnam imported approximately US$80.76 billion worth of goods in 2024, a 16.7-percent increase from the previous year. Given that many of these goods could be produced domestically, albeit with insufficient enterprise focus, policies are needed to stimulate domestic production of import-competitive products.
Furthermore, a fundamental imperative is the expedited reform of administrative procedures, minimizing unnecessary obstacles. This entails streamlining business registration, expediting investment licensing, digitizing inspection, and permitting processes to reduce enterprise time and costs. Implementing a risk assessment system to categorize enterprises and reduce inspection frequency for compliant entities is also a viable strategy.
Economic expert Dr. Can Van Luc voiced that simplifying capital injection procedures is paramount. Banks must adjust loan interest rates to a reasonable range of 6-8 percent per annum, or lower, to alleviate financial pressure on enterprises, while expanding preferential credit facilities for export-oriented and small-to-medium enterprises. Concurrently, loan approval processes should be streamlined, and collateral requirements reduced to enhance capital access.
Moreover, government agencies should actively facilitate market expansion. Enterprises require support in participating in trade promotion programs, international trade fairs, and leveraging e-commerce platforms to augment business efficacy.
Practical evidence demonstrates that trade promotion initiatives have enabled enterprises such as Saigon Garment, An Phuoc, and Vinamilk to expand their export markets to Europe and the US, while Truong Thanh Wood Company and AA Corporation have utilized international trade fairs to secure orders from strict markets like Japan and Australia.
“The development of e-commerce and digital transformation is an inevitable trajectory. Businesses require support in accessing major e-commerce platforms, benefiting from preferential transaction fees and technical assistance. The Government should enact more specific policies to bolster e-commerce development and facilitate enterprise digital transformation”, proposed Chairman Nguyen Anh Duc of the Vietnam Retail Business Association cum General Director of the HCMC Union of Trade Cooperatives.
General Director Kieu Huynh Son of Vietnam Steel Machinery and Products Co. Ltd. commented that the mechanical industry faces policy gaps, limited funding, and low profits. Public projects offer opportunities, but without clear policies, Vietnamese firms risk exclusion. Government commitments are vital to ensure domestic participation in major public investments, preventing foreign dominance.
