Economists expect a brighter 2014, ask state to maintain support

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Though they expect the ongoing economic slump to ease next year, analysts say the government's continued support for businesses will be the key to recovery, news website Saigon Times reported.

At a conference discussing Vietnam's economic outlook in Hanoi December 12, Doan Thi Quyen of the Vietnam Chamber of Commerce and Industry (VCCI) said there were few signs businesses were benefiting from a number of government supporting policies launched early this year.

She quoted a recent VCCI study that said nearly 54 percent of surveyed firms needed bank loans but only 36 percent have been able to borrow.

Tran Tien Cuong, an independent analyst with the Central Institute for Economic Management, said businesses are still under "great pressure."

According to official data, nearly 55,000 businesses dissolved in the first 11 months of 2013, up 8.5 percent year-on-year.

In the same period, over 71,000 firms were established, up 9.5 percent. But total newly registered investment saw a decline of 15.4 percent, indicating that new businesses were opting for smaller operations amid the economic slowdown.  

However, Cuong said the bright side was that over 12,700 enterprises that had previously suspended operations had re-opened for business last month.

Mai Thi Thu, director of the National Center for Forecast and Socio-Economic Information, said the last two years have been the hardest for Vietnamese companies.

She said next year would be a "great chance" for businesses to recover so long as the government keeps up its supports.

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