Active mindset helps businesses better deal with Covid-19 pandemic: Experts

Active mindset helps businesses better deal with Covid-19 pandemic: Experts

Enterprises have to look at themselves to streamline operation, as this is the right timing for them to restructure and take on digitalization, Editor in Chief of the Economic & Urban Newspaper Nguyen Minh Duc suggested.

Experts shared the view at an online conference held on August 27 discussing strategies for small and medium enterprises during the pandemic.

Overview of the conference. Photos: Khac Kien

The event, jointly held by DGroup Training and Manpower Supply Company and the Hanoi Association of Small and Medium Enterprises (Hanoisme), attracted the participation of nearly 300 enterprises in the city to share experiences and solutions to overcome this difficult period.

Economist Nguyen Tri Hieu said for the first seven months of this year, nearly 80,000 enterprises were forced to suspend operation, or an average of 10,000 exited the market every month.

“The situation, if not improved, could mean more than 150,000 enterprises going bankrupt this year,” Hieu stated.

Digging on difficulties that the majority of businesses are facing, Hieu said the shortage of working capital is the most concerning challenge. More significantly, the issue could become a chain effect and spread to their partners.

“Disruption to the supply chains means the access to customers is no longer there and also causes growing inventory costs, not to mention financial expenses to comply with Covid-19 restriction measures, in turn putting more pressure on enterprises’ operation,” he added.

Production at Sunhouse Group.

Former General Director of Traphaco Company Vu Thi Thuan added another issue for businesses emanates from a declining purchasing power of the people, as they are now only focusing on essential services and goods.

“Enterprises have to stay active and keeping a positive mindset in finding solutions to mitigate Covid-19 impacts,” Thuan added, referring to the application of digital technologies or changing working methods and governance.

“They have to optimize their entire working procedures and look for room to improve, as the goal would be to operate more efficiently with greater cost-saving and productivity,” she continued.

On this issue, economist Hieu suggested enterprises should devise long-term development strategies and financial plans on the assumption of different pandemic scenarios.

“No one can stand idle in this circumstance or wait for support to come, instead, they have to constantly think about how to move forward,” Hieu added.

Editor in Chief of the Economic & Urban Newspaper Nguyen Minh Duc noted the most important thing is to find out the enterprises' problems during the pandemic as well as providing them with the right support.

Meanwhile, enterprises have to look at themselves to streamline operation, as this is the right timing for them to restructure and take on digitalization, Duc said.

Vice-Chairman of Hanoisme Mac Quoc Anh, meanwhile called for the Government to continue extending its supporting policies of freezing and wavering fees and taxes for enterprises until 2022.

In addition to providing financial support, the acceleration of the vaccination programs for workers, especially in labor-intensive industries, is of significance, Anh stated.

“For the time being, local authorities should focus on addressing the disruption to the movement of goods to keep the supply chains intact,” he added.

Hanoi Times