Production recovered, the "health" of businesses improved

Production and business in July were better than in June and compared to the same period in many fields, reflecting the health of the business community, which has shown signs of improvement.

Vietnam has passed the first month of the third quarter with the international situation continuing to develop complicatedly. Difficulties and challenges outweigh opportunities and advantages. However, the economic situation in July and the next 7 months continued to be stable and developed with many bright spots. The industrial production index in July was estimated to increase by 3.9% compared to the previous month.

Specifically, production and business in July were better than in June and compared to the same period in many fields, reflecting the health of the business community, which has shown signs of improvement. This can be seen through the number of businesses entering and re-entering the market, which is much higher than the number of businesses temporarily withdrawing from the market.

In 7 months, 131,900 businesses entered and re-entered the market, while 113,300 businesses withdrew from the market.

Minh Cuong Commercial Construction Mechanical Company specializes in manufacturing steel structures, serving the construction and installation of industrial factories. Production output in July increased nearly 20% compared to the average of the months in the first quarter.

 The economic situation in July and the next 7 months continued to be stable and developed with many bright spots. The industrial production index in July was estimated to increase by 3.9% compared to the previous month. (Illustration photo - Photo: TTXVN)

"Recently, foreign businesses as well as domestic businesses have increased investment in domestic factories in Vietnam. Demand for steel has increased compared to the beginning of the year. Therefore, businesses like us I also increased orders," said Mr. Duong Tien Sang, Minh Cuong Commercial Construction Mechanical Company.

In the first quarter, the factory only operated at about 50% capacity; now, capacity has increased to about 70 - 80%. Enterprises expect that from now until the end of the year they will be able to operate the factory at 100% capacity.

The industrial production index in July also increased nearly 4% over the previous month and increased 3.7% over the same period. The number of businesses entering and re-entering the market is much higher than the number of businesses temporarily withdrawing from the market. This shows that the business investment environment is improving. Solutions to overcome difficulties for businesses, from capital support, tax and fee exemptions, to administrative reform, have come to life and have been practically effective.

"In the first 7 months of the year, the total number of businesses entering the market is 1.2 times higher than the number withdrawing from the market. Compared to the same period in 2022, the number of newly established businesses increased by 2.4% and the total registered capital The new registration is an increase of 4.3%, showing a very positive signal, especially in industrial production," said Mr. Phung Quoc Chi, Director of the Business Registration Management Department, Ministry of Planning and Investment.

"Having a ratio of businesses operating effectively will ensure jobs, ensure budget revenue, and ensure rapid and sustainable development of the economy. In the future, how can we minimize this? number of businesses leaving the market, especially those leaving the market due to capital difficulties and inadequacies in administrative procedures", Mr. Dau Anh Tuan, Deputy General Secretary of the Federation of Commerce and Industry Vietnam, comments.

Support services for economic growth

In the first half of this year, the service sector grew by over 6.3% and became one of the main factors contributing over 3 percentage points to GDP growth.

The areas of high growth in the past 7 months are: total retail sales of goods and revenue of consumer services, passenger transport, especially tourists to Vietnam increased nearly 3 times over the same period. These factors will continue to be the driving force for economic growth in the final months of the year.

From mid-August, the National Assembly increased the electronic visa period from 30 days to 90 days. Seizing the opportunity, Hanoitourist Travel Company has opened new experience products according to special requests so that international visitors can increase spending in Vietnam.

"Particularly for international visitors to Vietnam, their ability to pay has increased by an average of about 20%," said Mr. Le Hong Thai, Director of Hanoitourist Travel Company.

The Tourism Advisory Council predicts that Vietnam's tourism this year will exceed plan, welcoming more than 12 million international tourists if there are new thrusts.

"The Ministry of Culture, Sports and Tourism develops a recovery master plan. Then, other ministries and branches make adjustments to help the tourism industry, such as increasing the capacity of some international airports, based on this adjustment. economy, or improving road traffic," said Mr. Hoang Nhan Chinh, Head of the Secretariat, Tourism Advisory Council.

The end of the year is also the biggest shopping season, so many stimulus programs are ready so that the industry and trade sector can achieve its growth target of over 9% this year.

"Trade promotion is an activity that the Ministry of Industry and Trade considers an extremely important solution to implement domestic stimulus activities as assigned by the Government in Resolution 105. We will organize months of national-focused promotions. participation, activities connecting supply and demand...", Ms. Le Viet Nga, Deputy Director of the Domestic Market Department, Ministry of Industry and Trade, informed.

The General Statistics Office recently updated 3 growth scenarios for this year with a growth rate of 5%; 5.5% and 6%; In which, the service sector in the second half of the year is forecast to have a higher growth rate of 6.3 - 7.5%.

"Services are expected to be the sector leading growth in the second half of 2023. According to the scenario of the General Statistics Office, economic growth in 2023 is from 5 - 6%. Of which the service sector will contribute about 7%", said Ms. Nguyen Thi Mai Hanh, Deputy Director of the National Accounts System Department, General Statistics Office.

Although there have been positive developments, according to economic experts, the service sector can still make better contributions to the economy, if in the near future fields such as transportation, Warehousing, finance, banking and accommodation and food services further promote their potential.

According to vtv.vn