Planning for HCMC businesses to "Go global"
On Saturday morning (June 17), the Ho Chi Minh City Business Association (Huba) organized the 70th Business Coffee Program with the theme "Special mechanism - Opportunity for businesses to develop with the city".
The meeting of the city's business community this weekend saw the presence of Ho Chi Minh City Chairman Phan Van Mai. At 7am, Mr. Mai arrived at the event quite early, discussed with the business community about the recent economic situation and listened to feedback from Huba members.
Talking to the business community, Mr. Phan Van Mai said that difficulties and advantages are inevitable in business activities. In the first quarter of 2023, the city's growth was low, but now is the time to take a deeper look at the nature and causes of the problem and find solutions.
According to Mr. Mai, the Ho Chi Minh City People's Committee is issuing a plan to implement Resolution No. 24 of the Politburo on the Southeast and Resolution No. 31 of the Politburo on Ho Chi Minh City. The above two resolutions set out for the city a very important position, role, orientation, and major development tasks.
This city plan has 150 tasks that need to be solved, such as building Can Gio International Transit Port; completing the logistics center system in Ho Chi Minh City... From their perspective, the city leaders see opportunities for the business community. This is a large economic space.
Notably, Ho Chi Minh City is also developing a strategy for local leading enterprises. These are large enterprises in Ho Chi Minh City, which means large-scale enterprises nationwide. Ho Chi Minh City plans to support enterprises to invest abroad, also known as the "Go Global" program.
Because, in some fields, city enterprises can completely invest, develop and compete abroad. Ho Chi Minh City is not only a locality specializing in attracting FDI enterprises.
In addition, at the People's Council meeting in mid-July, the City People's Committee will present a number of support policies for businesses, such as support policies to solve issues of interest rates, inventory, access to new markets, etc.
"We appreciate the efforts and contributions of the business community in Ho Chi Minh City. Not only through production and business, budget contributions, and job creation, but the business community also contributes to the city's development strategies, orientations, and policies. From there, we will work together to build a developed city. When the city develops, businesses develop," said Mr. Mai.
Ho Chi Minh City's economy has hit "bottom" and is gradually improving.
Also at the program, Dr. Tran Du Lich , an economic expert, commented that the economic context of the country in general and Ho Chi Minh City in particular still has many difficulties, but needs to look towards prospects in the new period.
As a long-time economic observer, he assessed that the city's economic growth dropped sharply in the first quarter of 2023, marking the bottom of the decline. Mr. Lich affirmed that the city had hit rock bottom and there would be no second, deeper bottom. The economic expert explained the reason.
Firstly , the Covid-19 pandemic caused the economy to collapse locally. Ho Chi Minh City had to close for 4-5 months, all activities were affected.
Second , when the pandemic ended, the world situation became complicated, especially the Russia-Ukraine armed conflict. Since the second quarter of last year, financial market instability has appeared, all policies have focused on macroeconomic resilience and inflation control.
Third , Ho Chi Minh City has a very open economy, so it depends on domestic and international supply chains. The service industry accounts for 60% of the structure, and when the supply chain breaks down, it has a very serious impact. This is the reason why the city's economy has declined more deeply than many other localities.
Along with that, from the fourth quarter of 2022, policies to control and handle shortcomings in the corporate bond market and real estate market will also affect the general situation.
In general, Ho Chi Minh City is the place most affected by the double impacts, which will be clearly revealed in the first quarter of 2023. The economic decline in the first quarter also shows that the local economic structure is completely inadequate compared to the competitive needs of an economy; the management system is also inadequate compared to the scale of a large city.
Economists say the situation is gradually improving. The city has about 250,000 enterprises operating under the Enterprise Law and 450,000 production and business households that are not enterprises, operating on different scales. That proves that Ho Chi Minh City is still the place to start a business in the country and needs to create opportunities to become the place to start a business in the Southeast Asian region. To do that, Ho Chi Minh City needs to create a new ecosystem, nurture and develop the economy in the long term.
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