There are many “golden” opportunities for Vietnam to grab to restart the economy following the impact of the novel coronavirus disease (COVID-19) pandemic, said Tran Hoang Ngan, head of the Ho Chi Minh City Institute for Development Studies.
Vietnam has achieved positive results in the fight against COVID-19, while many countries across the world are still grappling with the disease, remarked Ngan, who is also a member of the prime minister’s economic advisory group.
This is a perfect time for local businesses to seize new markets, fully utilize the domestic market, and take advantage of all support policies the government has to offer, the expert continued.
The pandemic has helped prove the credibility of Vietnamese brands and businesses, as well as the country’s executive and administration capabilities in many sectors, especially healthcare.
“This is a chance for promoting Vietnamese trademarks and introducing Vietnamese products to many countries,” Ngan stated.
“We have to turn the risks into opportunities.”
The combined effects of the U.S.-China trade friction and COVID-19 pandemic have resulted in thousands of international enterprises planning to withdraw from China, he continued, adding that Vietnam is now an ideal nation for these businesses to consider.
Several other countries such as India have been preparing for this movement by implementing policies to attract foreign investors.
Vietnam should also boost such policies but should focus more on businesses that have applied digitization, are less labor-intensive, have good technology transfer, and offer good training for Vietnamese laborers.
Authorities should also promote the consumption of Vietnamese goods within the country to support local businesses, especially those that specialize in the export industry as they are still suffering from the negative impact of the worldwide pandemic.
Incentive policies are necessary to support companies that produce import-substituting goods, Ngan said, adding that more investment needs to be attracted to this field.
One of the most important tasks of economic recovery is to establish certain policies that focus on domestic development, such as further developing the connection between regions as well as between local and foreign businesses in Vietnam.
The Ministry of Industry and Trade has already suggested new markets that Vietnamese businesses could tap into, and the government will need to support the study into these markets.
“We have kept the epidemic under control, thus have time to perform such tasks and seize chances,” the expert elaborated.
It is also necessary to continue such fiscal policies as tax holidays and accelerate the disbursement of public investments worth VND700 trillion (US$29.8 billion), he said.
The lawmaking National Assembly is expected to discuss a resolution on supporting businesses in its upcoming session this month.
The State Bank of Vietnam will also reduce refinance rates, which can be very helpful in the current situation, Ngan said.
In addition, the Ministry of Finance has been drafting a resolution regarding the reduction of taxes for small and micro businesses.