Ministry of Industry and Trade: Continue to accompany businesses to develop production and business chains


The Ministry of Industry and Trade accompanies the development of pure Vietnamese production and business chains to increase the competitiveness of enterprises and the economy.

Assoc. Dr. Dinh Trong Thinh – Lecturer of the Academy of Finance had an interview with a reporter of the Industry and Trade Newspaper right on the eve of the Prime Minister’s Conference with enterprises nationwide with the theme “Actively adapting, recovering quickly and developing rapidly.” sustainability” took place on August 11.

To help businesses overcome current difficulties, recover and grow after the Covid-19 epidemic, what is the solution for the Ministry of Industry and Trade, sir?

In fact, businesses have recovered and are growing relatively well. Business registration in the first 7 months of 2022 continued to record many positive signs. The number of enterprises registered for new establishment and return to operation in the first 7 months of this year reached 133.7 thousand enterprises, an increase of 26.8% over the same period in 2021 (surpassing the milestone of 105.4 thousand enterprises in 2021).

Industrial production recovered positively

The report of the Ministry of Industry and Trade showed that the industrial production index in July, although only increased by 1.6% compared to June, increased by 11.2% compared to the same period last year (the same period increased by 2.2%). . Generally, in 7 months, the industrial production index increased by 8.8% over the same period last year (in the same period in 2021, it increased by 7.6%). As such, our industrial production has returned to the near 2019 growth rate.

There are many different opinions, but in my opinion, businesses are recovering and growing spectacularly, and it is clear that from now until the end of the year we still have good growth hope. Because, up to 85% of enterprises in industries still think that growth is stable and better in the second quarter, only 15% consider it difficult. This is a very good indicator that after many years we are back to this number. As I also shared above, newly established businesses in the national economy are also increasing rapidly, with the largest number in 7 months of recent years.

The growth and recovery of businesses in the first months of the year will create momentum for the third and fourth quarters of this year, plus the price of oil, commodity prices, and raw materials are on the decline, I expect we will reach achieve the “dual goal”, according to which, both to control inflation and at the same time achieve a high growth rate in the last quarters of the year so that the whole year can achieve a growth rate of somewhere around 7.8 – 8, 4%.

However, in order to achieve macro growth figures, from the perspective of the Ministry of Industry and Trade , in my opinion, there are a few things that need to be done. Firstly, it is necessary to continue administrative reform to attract investment as well as support enterprises to be suitable in production and business activities. This will be the basis for economic growth.

Second, it is necessary to promote the digitization of documents as well as the economy so as to minimize access costs as well as compliance costs for businesses in the market economy. This has been implemented in the past, but it needs to be done better to help businesses reduce costs in accessing new policies and regimes as well as implementing them. This solution can be done immediately and always. It is both in line with the development orientation of the Party and the State, but also a development problem for businesses.

Third, the Ministry of Industry and Trade continues to direct deals, coordinate with Vietnamese embassies abroad in expanding and developing markets, bringing into full play the capacity of import and export markets such as the United States, Japan, EU, China, Korea… especially markets where Vietnam has FTAs ​​to boost export activities.

Especially in the current context, when the dollar appreciates very strongly, 70-80% of Vietnam’s imports and exports are in USD. When the currencies of countries are depreciating relative to the US dollar, consumers in many countries cut spending, and the export of businesses will face many difficulties. Therefore, the involvement of the Ministry of Industry and Trade and trade counselors and embassies in finding more export and import markets, thereby promoting import and export activities is the driving force for growth. very important to the economy.

Assoc. Dr. Dinh Trong Thinh – Lecturer at Academy of Finance

Fourth, the Ministry of Industry and Trade also needs to cooperate with enterprises to create production chains of domestic enterprises together, as well as production chains of domestic enterprises with domestic enterprises. FDI industry. On that basis, a production and business chain by industry and field can be created . From there, helping businesses save costs in production and investment activities, as well as create a chain of products and goods with the lowest cost but the highest production and business efficiency.

This is one of the ‘problems’ that we have talked about a lot before, the implementation is there but not yet powerful and this time is very necessary so that we can gradually create the production chain, Vietnamese business. Only in this way can we gain competitive strength in the context that the world economy is facing a lot of instability, there may be unpredictable reversals or turns. The organization of production linkage chains will be a “shock absorber” for production and business activities in the coming time.

Fifth, the Ministry of Industry and Trade can cooperate with other ministries and agencies in propagating to businesses new policies of the Party and the State; Vietnam’s commitments to the region, free trade agreements so that businesses can make the most of the export potential and potential of the markets, the incentives that Vietnam has to offer. has been devoted by the partners. This is something that the Ministry of Industry and Trade can do right away.

Regarding the trend of gasoline prices, how do you think about the upcoming trend? How will the decrease in gasoline prices and commodity prices tend to decrease for businesses and consumers, sir?

As early as June, when talking about inflation, I also mentioned this issue. At that time, I thought that the world gasoline price could be at 110 – 120 USD/barrel (crude oil) and I gave 2 scenarios. If by the end of June 2022, if we make good use of the opportunity, we can grow from 7 to 7.5% and inflation will be at 3.5 – 3.8%. If the world gasoline price drops below about 100-110 USD/barrel of crude oil, we can obviously grow. Of course, in the condition that businesses take advantage of export opportunities and the world economy recovers relatively well, then, economic growth can reach 7.8 – 8.4%, inflation will not be the same. That’s about 3.8 – 4.1%. Up to now, the world gasoline price has been lower than my expectation and is currently at the level of 90 – 110 USD/barrel of crude oil, this will help reduce the domestic gasoline price.

On the other hand, when the price of gasoline fell, right at the end of June and the beginning of July, 2022, the price of many raw materials and fuels decreased such as iron, iron and steel, animal feed, corn flour, etc. goods are reduced by 3-5%, but there are also items that are reduced by 10%, this is an opportunity for businesses to accelerate production and business activities and reduce costs and costs. At the same time, reducing the inflationary pressure of the economy.

However, many of our products are still holding relatively high prices. Therefore, it is necessary to have the resolute participation of the authorities such as Market Management (Ministry of Industry and Trade); Price Management Department (Ministry of Finance) see if the prices of items are appropriate? If the price is deliberately kept, anchored, or made at a high level in order to gain unwarranted benefits, measures will be taken to bring the price back to the common ground.

With the synchronous implementation of solutions, I also expect the inflation index in August to decrease and possibly be negative compared to July. Thus, inflation pressure in the last months of the year will be greatly reduced.

Recently, the Ministry of Industry and Trade organized “Trade promotion briefing with foreign markets in July 2022″, the event is part of a series of trade promotion briefings with foreign markets according to the Ministry of Industry and Trade. monthly in 2022 and 2023, how do you rate this activity?

Along with political diplomacy or national sovereignty, economic diplomacy has become one of the main activities to connect domestic and foreign economic relations.

The Ministry of Industry and Trade has seen the importance of deals, embassies and the organization of trade promotion briefings with foreign markets to capture and disseminate market information, connect deals, embassies with domestic import and export enterprises. This is an opportunity to help Vietnamese businesses promote import and export activities as well as reach out to the world market.

Thank you sir!

Source Bao Cong thuong

Let’s welcome the return of MTA Hanoi 2022 – The leading exhibition on precision mechanics and metal processing industry in the North. Here, the latest products, solutions and technologies are introduced by exhibitors, creating more opportunities to approach customers and potential suppliers. The exhibition is also a platform to connect and communicate between regional and international businesses in the industry to update the latest industry trends. Beyond that, there will be presentations from leading industry experts, from which you can update industry knowledge and enhance experience at the exhibition.
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