What are the difficulties in production and business?

Businesses are having difficulty finding customers.

On July 4th, the Ho Chi Minh City Department of Labor, War Invalids and Social Affairs announced that, according to a survey of 5,861 businesses operating in Ho Chi Minh City, 3,642 businesses reported normal operations (62.14%), 632 businesses reported reduced production and business activities (10.78%), and 1,493 businesses reported facing significant difficulties (25.47%).

The majority of businesses faced difficulties and scaled back production and business operations due to a lack of orders (88.75%), a shortage of working capital (8.94%), changes in production and business sectors (1.22%), and a labor shortage (1.09%).

Tình hình doanh nghiệp hiện nay: Sản xuất kinh doanh khó khăn ở điểm nào? - Ảnh 1. — Businesses are struggling, leading to tens of thousands of job losses.

According to the survey, during their operations, businesses often encounter difficulties in finding customers and export markets; shortages of supply and raw materials; lack of government support policies; and lack of information and guidance on implementing relevant regulations.

In addition, businesses also complain about difficulties in accessing loan capital; difficulty in finding suitable labor; and the quality and skills of the workforce not meeting requirements.

Ho Chi Minh City will reduce its workforce by approximately 30,000 people.

Regarding the employment situation in businesses, according to the survey results of 5,861 businesses with 652,580 employees, the Department of Labor, War Invalids and Social Affairs reported that Ho Chi Minh City currently has 377,198 employees working in foreign-invested enterprises (FDI, accounting for 57.8%); 249,355 employees working in non-state enterprises (accounting for 38.21%); and 26,027 employees working in state-owned enterprises (accounting for 3.99%).

The workforce is primarily employed in the following sectors: processing and manufacturing industries, wholesale and retail trade; repair of automobiles, motorcycles, and scooters; transportation and warehousing; information and communication; accommodation and food services, etc.

Compared to the end of 2022, 2,906 businesses maintained the same number of employees (accounting for 49.58% of the total surveyed businesses); 1,464 businesses experienced a decrease or no increase in the number of employees (accounting for 24.98%); 766 businesses experienced both increases and decreases in the number of employees (accounting for 13.07%); and 725 businesses experienced an increase in the number of employees (accounting for 12.37%).

Of these, the number of workers increased by 13,245, while the number of workers decreased by approximately 30,000.

Businesses are still being affected in the post-Covid-19 era.

Ms. Nguyen Hoang Hieu, Director of the Ho Chi Minh City Center for Human Resources Forecasting and Labor Market Information, stated that according to the unit's assessment, the Ho Chi Minh City labor market experienced many fluctuations in the first six months of this year, under the impact of the domestic and global economies .

The recovery rate of businesses remains slow. Many businesses, after responding to the Covid-19 pandemic, face financial difficulties in reorganizing production to meet changes in standards, tastes, and new customer requirements for goods.

Tình hình doanh nghiệp hiện nay: Sản xuất kinh doanh khó khăn ở điểm nào? - Ảnh 2. — Businesses in the processing and manufacturing industry; electronic component production and assembly; wood processing, etc., will face many difficulties in the near future.

However, Ho Chi Minh City has taken many proactive and positive measures to support businesses in recovering and developing production and business activities, such as attracting investment, reducing interest rates, providing tax relief, and simultaneously monitoring labor market developments to promptly support workers in finding new jobs, diversifying forms to increase the effectiveness of connecting labor supply and demand.

Although the labor market outlook is brightening with the economic recovery, Ho Chi Minh City's economy will continue to face many unpredictable challenges. The real estate market remains difficult, import and export activities, while increasing, are still slow; orders have not fully recovered to pre-pandemic levels, and finding and developing foreign markets is proving challenging.

This has led to continued fluctuations in the labor and employment situation, with job cuts still occurring in businesses, especially in the processing and manufacturing industries, particularly textiles, footwear, electronic component manufacturing and assembly, and wood processing.

To promote a strong and sustainable recovery of the labor market, the Ho Chi Minh City Center for Human Resource Demand Forecasting and Labor Market Information believes that Ho Chi Minh City needs to continue implementing various solutions and policies to develop the economy and stabilize employment.

The amount of capital invested in new businesses decreased by more than 18% compared to the same period in 2022.

According to a report by the Ho Chi Minh City Statistics Department, from the beginning of the year to June 20th, Ho Chi Minh City has granted licenses to 23,035 businesses with a registered capital of over 212,626 billion VND, an increase of 7.6% in licenses but a decrease of 18.3% in capital compared to the same period last year.

Of these, the nine main service sectors (including trade; transportation and warehousing; tourism; postal services, telecommunications and information and communication; finance, credit, banking, and insurance; real estate business; information and consulting services - science and technology; education and training; and healthcare) saw the establishment of 17,085 businesses, a 9% increase compared to the same period last year; registered capital reached VND 137,557 billion, a decrease of 29.6%.

If categorized by business type, there are 20,621 limited liability companies, an increase of 10.3% compared to the same period last year; total registered capital reached VND 162,513 billion, an increase of 20.2% compared to the same period last year.

Joint-stock companies numbered 2,063, a decrease of 18.3%; registered capital was 49,876 billion VND, a decrease of 60.1%. Meanwhile, private enterprises numbered 347, an increase of 77.9%; registered capital was 182 billion VND, an increase of 107.1%.

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