Young Entrepreneur Association chairman Mai Huu Tin. Photo vnexpress

(Biz Hub) National Assembly delegate and Young Entrepreneur Association chairman Mai Huu Tin said a large number of Vietnamese enterprises were dead and were just waiting to be buried. He chats about the problem with VnExpress on the sideline of NA's group work yesterday.

Many economic experts and NA delegates aggree that many enterprises are exhausted. What do businesses think?

The fact is that a large number of businesses are dead and are just waiting to be buried. As I see it, enterprises in the southern province of Binh Duong are luckier than those in other provinces and cities. When I visit young business associations in big cities like Hai Phong, Ha Noi, HCM City and Can Tho, I see clearly that their difficulties are bigger than people think. More than 50 per cent of the young businessmen queried do not believe they can survive this tough period.

What is the biggest difficulty for enterprises?

I think small markets and week purchasing power are the major obstacles. I am not talking about the property market, since we all know its problems, but the manufacturing sector faces serious difficulties due to low consumption. The process of making products, selling few and then putting the remainder in stock kills businesses. Sluggish production is overwhelming as a consequence.

Apart from solutions that the Government has approved, what else do businesses need to overcome the difficult time?

I think the Government's solutions are all good. For instance, restructuring enterprises was an appropriate policy. However, the policy was implemented too slowly. It is necessary to promote policy enforcement.

Can you predict when the difficult period will end?

I do not have any optimistic outlook for the future since I feel the bad situation will continue.

So what are the best solutions for difficult enterprises? Closing business and waiting for a better time or keeping businesses open but not pouring more money in?

This is not a good time for businesses in difficulty to make investments. They should not jump to other sectors but maintain their core operation. I believe the Government does everything it can do for enterprises. The rest is up to the businesses themselves.

It is more important that businesses save themselves by trying harder to find opportunities. Sooner or later, the situation will get better, but I can not tell exactly the time.

Many businessmen admit their investments are scattered in too many fields. This is a lesson for them. After this they should only focus on their strong sector.

Some NA deputies say that many enterprises have lost faith in the future. What can be done to help them regain their belief?

In the tough period, businesses firstly must trust themselves. They have to save themselves rather than wait for benevolent bail-outs. This requires effort and strong will.

The NA is discussing amendments to the Law on Corporate Revenue, but it's for the future rather than for present. Taxes, particularly value-added tax (VAT), affect corporate operations. However, the immediate problems facing businesses are not taxes but small market demand. -- VNS