Enterprises face difficulties in capital sources and procedures
In Hanoi, a representative of a fertilizer manufacturing enterprise said that when domestic market demand is showing positive signs, the enterprise wants to expand production to meet the demand, but is having difficulty accessing bank loans.
"We want to borrow more capital to invest in machinery and expand factories, but the assets are not guaranteed enough, and it is difficult for banks to value and accept mortgages for machinery and equipment in the fertilizer industry" - the business representative shared.
According to data from the Department of Private Enterprise Development and Collective Economy (Ministry of Finance), in the first 2 months of 2025, up to 67,034 enterprises withdrew from the market, most of which chose the form of temporary and short-term business suspension, accounting for 84.9%. These figures clearly reflect the pressure on capital and the ability to maintain operations of small and medium enterprises.
Many manufacturing enterprises in Ho Chi Minh City are also facing barriers in accessing production expansion facilities, interest rates and administrative procedures.Mr. Nguyen Quoc Anh - Director of Duc Minh Rubber Company Limited - said that private enterprises are currently facing many difficulties in finding land to invest in and expand production, while the cost of premises in Ho Chi Minh City is very high.Although the interest rate level has decreased compared to last year, it still puts great pressure.
According to Mr. Quoc Anh: "The State should have reasonable stimulus policies, creating conditions for businesses to boldly invest.If it can support land fund, preferential capital and stable interest rates, businesses will have more motivation to expand production and improve technology".
Not only stopping at capital and site issues, administrative procedures are also a major barrier for small and medium-sized enterprises.
Mr. Nguyen Ngoc Hoa - Chairman of the Ho Chi Minh City Business Association - said that one of the bottlenecks that businesses are most complacent about today is cumbersome administrative procedures. Mr. Hoa analyzed that there are outdated procedural regulations that are no longer suitable for business practice. In particular, small and medium-sized enterprises often do not have enough human resources to meet complex procedures, causing costs and reducing operational efficiency.
Need to open up development space for small businesses
Analyzing this situation, Associate Professor, Dr. Tran Dinh Thien - former Director of the Vietnam Economic Institute - commented that private enterprises account for the largest number, making great contributions to the development of the economy, especially in Ho Chi Minh City. However, this area is still hampered by major bottlenecks in mechanisms, capital, land and administrative procedures.
According to Mr. Thien, Ho Chi Minh City needs to create a completely new mechanism, helping to untie businesses - the main driving force of development.
The city needs to unblock and open up new development space for private enterprises, especially new types of enterprises such as digital enterprises, science and technology enterprises, etc. To do so, it is necessary to strongly reform administrative procedures, give businesses the initiative and support access to production premises - Mr. Thien emphasized.
He also proposed that Ho Chi Minh City should have its own policies to support small and medium-sized private enterprises in accessing preferential loans and land for production. It is necessary to focus on management consulting, human resource training and market connectivity to help businesses improve their competitiveness.
