Not beyond the forecasts of economic experts and research organizations, right from the first month of 2023, the production situation of the majority of domestic enterprises is facing many difficulties due to the output and number of orders. New orders dropped sharply.
Even many businesses are tending to reduce jobs and purchasing costs for production, showing that business activities are on a downward trend.
According to Mr. Truong Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), currently, although seafood enterprises have declared Spring, most have not yet stepped up production because of signed orders. too few, counting on fingers. In fact, the inventory has been settled, it is likely that it will not be until the end of the first quarter of this year, the seafood market will recover and new transactions will be bustling. China has cleared the procedures for controlling the COVID-19 epidemic; now only waiting for the European market and the inflation situation in the US… can the total demand be determined.
In January 2023 alone, turnover shrimp export continued the deep decline following the trend of the last quarter of 2022, specifically a decrease of 46% compared to the same period in 2022. This decline is explained by the fact that large consumption markets continue to be influenced by Inflation reduces consumer demand. Not only that, shrimp farming powerhouses such as Ecuador and India have recovered output, creating a large supply at a more competitive price than Vietnam’s shrimp, Mr. Hoe added.
[Doanh nghiệp thủy sản kỳ vọng xuất khẩu phục hồi từ quý 2 năm 2023]
Not only the seafood industry, according to the General Statistics Office, in January, the total export and import turnover of goods was estimated at 46.56 billion USD, down 17.3% compared to the previous month and down. 25% over the same period in 2022; in which, exports decreased by 21.3%; imports decreased by 28.9%.
The reason for this decrease is that the Lunar New Year and Lunar New Year months are too close together, so the number of working days is less than in the same period in 2022. The world is in a period of upheaval, changes in Geopolitics are expected to continue to affect the Vietnamese economy in general and the activities of the import-export business community in particular, at least until the end of this first quarter.
The world situation with so many changes; especially the Ukraine-Russia conflict and high inflation are also the reasons why orders from major partners such as Europe or Japan have dropped sharply compared to previous years, Mr. Hoe analyzed more clearly.
Operating in the field of fashion production and business, Mr. Dang Quoc Dung, Director of D.Suit Vietnam Company Limited, said that the impacts of the economy such as inflation and rising interest rates along with The difficulties of many fields and industries are causing orders in many businesses to drop sharply. If it was like last year, even though it’s still there COVID-19 epidemic but the number of orders is still at an acceptable level because the accumulated amount of people’s money is still there. However, entering 2023, it seems that people’s pockets have been directly affected, making the sales of many units fashion down 20-30% year on year.
Workers in a garment factory for export. (Photo: Tran Viet/VNA)Difficulty of enterprise in particular and of Vietnam’s economy in general have been forecasted in advance and have started to show since the fourth quarter of 2022; but so far shows no sign of stopping. Not only had the number of orders decreased, businesses also had to face increased production costs, which led to reduced profits, even losses… forcing many businesses to reduce production. Many investment projects have to be postponed or converted, or even halted to cope with immediate difficulties and disadvantages.
Facing existing difficulties and through summarizing the situation assessment from many businesses, the Vietnam Confederation of Commerce and Industry (VCCI) said that many business owners are expressing their desire to receive help from the Government. Government and regulatory agencies to help businesses maintain operations when it is forecast that this difficult situation may continue until the end of the second quarter. Especially, the Government and the banking and finance industry should continue to have supportive policies on loans or reduce or extend taxes or shorten the time to resolve procedural issues.
Mr. Nguyen Vu Cao, Chairman of the Board of Directors of Khang Land Group, said that this time, the entire real estate market was almost “paralysed” with a huge amount of money loss. Enterprises had to completely restructure, reduce personnel and optimize costs, increase quantity to quality, increase the level of elite of personnel. In the coming time, in addition to streamlining and restructuring the business as well as upgrading internal resources, the company will also re-evaluate the market and select products with core values, bringing true value to customers. client.
In addition, the company will also set out the strictest product selection criteria, thereby providing customers with valuable products such as product quality, utility, service, reputation, and features. implementation capacity and ability of the investor to complete, location, legal …
Sharing experiences, Mr. Vu Cao said that in order for businesses to save themselves and overcome the current difficult period, the first solution is to diversify revenue sources and cut spending; at the same time upgrade in technology and people. In addition, review the limitations and weaknesses in the previous period to draw lessons for yourself.
Ngoc Quynh (VNA/Vietnam+)