7 reasons why the competitiveness of Ho Chi Minh City enterprises is low

Ho Chi Minh City's strategic capacity, operational efficiency, corporate income tax, number of employees, revenue, and technical infrastructure lead the country, but the business environment is declining.

Ho Chi Minh City has just reported to the City People's Council regarding issues of concern to delegates. The City said that the profits of the City's enterprises have decreased significantly since 2010 (only 30% of the country's business force in Ho Chi Minh City generated only 21.5% of profits in 2019 and 17.4% in 2021). The City's GRDP per capita has also decreased compared to before and when compared to the national average (in 2023 it was 171 million VND, 1.68 times higher than the country's; in 2000 it was 2.79 times higher). This shows that the actual labor productivity of the City's enterprises is not superior to that of the country.

According to the report, the City's strategic capacity, operational efficiency, corporate income tax, number of employees, revenue (industry cluster development), and technical infrastructure are leading the country. However, the City's business environment is declining relatively over time, as shown by the decrease in investment attraction.

Ho Chi Minh City points out 7 reasons why the competitiveness of the city's enterprises is low.

Factors affecting the competitiveness of low-income enterprises in the City are mainly due to 7 reasons: Low financial capacity; Low ability to participate in the global value chain; Low technology level; Low labor productivity; Lack of attention to product branding; Limited business management capacity; Weak awareness and compliance with the law.

Therefore, to improve the competitiveness of enterprises, the City will implement specific solutions such as through human resource development strategies to improve creativity, cooperation, adaptability, and receptiveness for enterprises; support access to finance for enterprises; apply AI, IoT, Big Data, digital transformation technologies... in state and enterprise management; improve trade and investment promotion activities to support enterprises in finding sources of goods; improve legal consulting support activities for enterprises.

Source: https://baodautu.vn/7-nguyen-nhan-khien-nang-luc-canh-tranh-cua-cac-doanh-nghiep-tphcm-thap-d223117.html