The impact of the global financial crisis that began in late 2007 on small and medium enterprises in Vietnam

Appendix: Vietnamese legal documents introduced to prevent recession and stimulate the economy:

- Resolution No. 30/2008/NQ-CP dated December 11, 2008 of the Government on urgent solutions to prevent recession, maintain economic growth, and ensure social security.

- Decision No. 12/2009/QD-TTg dated January 19, 2009 of the Prime Minister on promulgating the plan to implement Resolution No. 30/2008/NQ-CP dated December 11, 2008 of the Government.

- Decision No. 131/QD-TTg dated January 23, 2008 of the Prime Minister on interest rate support for organizations and individuals borrowing capital from banks for production and business.

- Decision No. 333/QD-TTg dated March 10, 2009 amending and supplementing a number of articles of Decision 131/QD-TTg

- Decision No. 16/2009/QD-TTg dated January 21, 2009 of the Prime Minister promulgating a number of solutions to implement the policy of stimulating investment and consumption, preventing economic recession, and removing difficulties for businesses.

- Decision No. 14/QD-TTg dated January 21, 2009 of the Prime Minister on the Regulation on guarantees for enterprises to borrow capital from commercial banks.

- Decision No. 443/QD-TTg dated April 4, 2009 of the Prime Minister on interest rate support for organizations and individuals borrowing medium and long-term capital from banks to make new investments to develop production and business.

- Decision No. 497/QD-TTg dated April 17, 2009 of the Prime Minister on interest rate support for purchasing machinery, equipment, materials for agricultural production and materials for building houses in rural areas

- Decision No. 30/2009/QD-TTg dated February 23, 2009 of the Prime Minister on interest rate support for employees who lose their jobs in enterprises facing difficulties due to economic downturn;

- Circular No. 02/2009/TT-NHNN dated February 3, 2009 of the Governor of the State Bank detailing the implementation of interest rate support for organizations and individuals borrowing capital from banks for production and business;

- Circular No. 04/1009/TT-NHNN dated March 13, 2009 amending and supplementing Circular No. 02/2009/TT-NHNN dated February 3, 2009;

- Circular No. 05/2009/TT-NHNN dated April 7, 2009 of the State Bank detailing the implementation of interest rate support for organizations and individuals borrowing medium and long-term capital from banks to make new investments in production and business;

- Circular No. 09/2009/TT-NHNN dated May 5, 2009 of the State Bank of Vietnam regulating the implementation of interest rate support for loans to purchase machinery, equipment, materials for agricultural production and materials for housing construction in rural areas;

- Circular No. 03/2009/TT-BTC dated January 13, 2009 on urgent solutions to prevent economic recession, maintain economic growth, and ensure social security issued by the Ministry of Finance to guide the implementation of reducing and extending corporate income tax payment according to Resolution No. 30/2009/NQ-CP dated December 11, 2008;

- Circular No. 04/2009/TT-BTC dated January 13, 2009 of the Ministry of Finance on guidance on value added tax refund implementation under Resolution No. 30/2008/NQ-CP;

- Circular No. 05/2009/TT-BTC dated January 13, 2009 of the Ministry of Finance guiding a number of contents on customs procedures, export tax, import tax and tax management for import and export goods according to Resolution No. 30/2008/NQ-CP.

SURVEY ON THE IMPACT OF THE GLOBAL FINANCIAL CRISIS STARTING IN 2007 ON VIETNAMESE ENTERPRISES

Note: The information collected will be kept confidential and used only for survey and synthesis purposes on the impact of the global financial crisis that began in 2007 on Vietnamese businesses.

A. BUSINESS INFORMATION

1. Business name: ...................................................................................................

2. Address: ...................................................................................................................

3. Information of the person filling out the form:

-Full name:..........................................................................................................

-Job position: ........................................................................................................

-Phone: .............................................................................................

-Company website: ...................................................................................................

4. Year of establishment: ................................................................................

5. Main production and business sectors:

AREA

Agriculture, forestry and fisheries

Industry and construction

Trade and services

Maybe you are interested!

6. Business size: (average annual number of employees, total capital)

ANNUAL VALUATION

AVERAGE NUMBER OF EMPLOYEES

	TOTAL CAPITAL
10 people or less		From 10 billion or less
From 10 to 50 people		From 10 to 20 billion
From 50 to 100 people		From 20 to 50 billion
From 100 to 200 people		From 50 to 100 billion
From 200 to 300 people		From 100 billion and up
From 300 people or more

B. IMPACT OF THE GLOBAL FINANCIAL CRISIS ON BUSINESSES

Does the crisis affect business?

No effect

Has an impact but not much

Have influence

Many influences

Very much affected

If there is any impact, please let us know what aspects of the company the crisis has affected?

Attracting capital

Production and business

Consumption of products and provision of services

Other (please specify affected side)

................................................................ ................................................................ ..................

B1. Capital attraction is affected

1. Is it easier or more difficult for businesses to attract capital?

Much easier

Easier

Constant

More difficult

Much more difficult

2. If there are difficulties, what are the difficulties in attracting capital?

Bank loan

Raising capital through stocks and bonds

Other sources of funding (please specify)…………………………………….

……………………………………………………………………………..

3. How much percent did the amount of capital attracted increase or decrease? (compared to last year)

Year 2008

Increase(%)………………..	Reduce(%)…………………………
Year 2009	Increase(%)………………..	Reduce(%)…………………………

B2. Production and business

1. About input materials

Do businesses have more difficulty importing raw materials?

Year 2008

	Year 2009
Much easier		Much easier
Easier		Easier

	Constant
More difficult		More difficult
Much more difficult		Much more difficult

Constant

If so, what are the reasons for the difficulty in importing input materials?

Fewer suppliers

Input material prices are too high

Other reasons (please specify)……………………………………….

................................................................ ................................................................ ............

2. About technological equipment

Does the business import new technological equipment to make production easier?

Year 2008

	Year 2009
Much easier		Much easier
Easier		Easier
Constant		Constant
More difficult		More difficult
Much more difficult		Much more difficult

3. About human resources

Does the business have to cut human resources?

Year 2008

Year 2009
Yes (% reduction)…………………	Yes (% reduction)…………………
Are not	Are not
Increase (% increase)…………………..	Increase (% increase)…………………..

C. About product consumption, service provision

C1. Does the company export?

Have

Are not

C.2. If there is export: what is the market that the business usually exports to?

................................................................ ................................................................ ..................

C.3. How has the company's export situation been in the past two years?

Year 2008

Year 2009
Increase (% increase)…………………	Increase (% increase)…………………
Unchanged	Unchanged
Decrease (%decrease)…………………..	Decrease (%decrease)…………………..

C.4. Do you think the export situation is affected by the financial crisis?

No effect

Has an impact but not much

Have influence

Many influences

Very much affected

C.5. Does the business consume products and provide services domestically?

Have

Are not

C.6. How has the company's revenue from domestic consumption been in the past two years?

Year 2008

Year 2009
Increase (% increase)…………………	Increase (% increase)…………………
Unchanged	Unchanged
Decrease (%decrease)…………………..	Decrease (%decrease)…………………..

C.7. In your opinion, is domestic product consumption affected by the financial crisis?

No effect

Has an impact but not much

Have influence

Many influences

Very much affected

Thank you very much for your cooperation!!!

Business representative

REFERENCES

1. Nguyen Duc Huong (2010) “Global financial crisis_ challenges for Vietnam. – Thanh Nien Publishing House

2. Nguyen Van Nha (2009) “The 2008 Global Financial Crisis: In the eyes of international journalists and economic experts” - Tri Thuc Publishing House

3. General Statistics Office, statistical yearbooks of each year

4. Foreign Economic Journal

5. Foreign Trade Magazine

6. General Statistics Office website: www.gos.gov.vn

7. Ministry of Industry and Trade website: www.moit.gov.vn

8. Vietnam Economic Times website: www.vneconomy.vn

9. Vietnam Economic Newspaper Website: www.ven.vn

10. Website of the Northern Small and Medium Enterprise Support Center: www.hotrodoanhnghiep.gov.vn

11. Website of Vietnam Association of Small and Medium Enterprises: www.vnasme.com.vn

12. Website of Vietnam Leather and Footwear Association. http://www.lefaso.org.vn/

13. Import-export information portal website: http://ngoaithuong.vn

14. Vietnam Express News Website: http://vnexpress.net

15. O' Star Research Group: Financial crisis and international debt crisis. Analysis of potential risks of Vietnam's economy by O' Star Research Group.

The impact of the global financial crisis that began in late 2007 on small and medium enterprises in Vietnam - 16

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