As a result of the Covid-19 pandemic, the economy is in a recession, businesses are facing difficulties that may be at risk of bankruptcy. Therefore, economic experts must find solutions to support businesses and restore industrial production.

According to a report of the Ministry of Industry and Trade, the cause of the decline in industrial production is the high global energy and input fuel prices, which have impacted the production costs of domestic enterprises; inflation is still high; monetary policy has not been loosened; The slow recovery of the world economy and the collapse of some banks in the world,…

However, domestic purchasing power is still weak even though it has recovered, has not been able to stimulate production, investment and consumption, and purchasing activities have decreased again.

In addition, businesses still have difficulty in accessing capital, bank interest rates, input costs are still high, especially the ability of enterprises to absorb capital has begun to decrease.

Industrial production recovery

Solution for business

Facing the decline in industrial production growth, the Ministry of Industry and Trade is trying to find ways to remove difficulties and develop output for goods, thereby boosting production.

According to economic expert Dr. Dinh Trong Thinh: “The efforts of the Ministry of Industry and Trade are not enough, businesses and industries themselves need to increase their linkages to support each other in production and consumption activities, then the added value will be high and develop sustainably.”

As for the point of view of Dr. Nguyen Bich Lam:

The most important thing is to find outputs for businesses, noting that each industry has different outputs. For industries with export strengths such as leather shoes and textiles, besides maintaining traditional markets, they need to find new markets.

In terms of institutions, it is necessary to remove regulations that hinder business development. Currently, there are many regulations that are not wrong but are not consistent with reality, causing many difficulties for enterprises to meet the standards for production and business activities.

In order to offer solutions that must be suitable for different industries, relevant ministries, sectors and state agencies should periodically meet with businesses to listen to their sharing from there to solve difficulties, promote production and business.

Regarding capital factor, economic expert, Assoc. Dr. Ngo Tri Long – Former Director of the Institute for Price Market Research (Ministry of Finance) shared the view that: “Enterprises are currently facing difficulties in capital, so they need to find solutions to open up capital flows for their cash flows. Considering the problems of each field, which areas need to be prioritized, then pour capital into to promote production and business. At the same time, we must calculate and try to keep interest rates stable.”

Finally, it is necessary to consider cutting unnecessary administrative procedures, reducing inspection and periodic inspection, and having a program to support businesses to open new markets very effectively for businesses…

Sources: Cong Thuong News