The rate of job loss and underemployment in Vietnam’s Mekong Delta region stands at 3.6 percent, surpassing the national average of 2.2 percent, an expert highlighted at a business meeting in Can Tho City on Thursday afternoon.

Nguyen Phuong Lam, director of the Vietnam Chamber of Commerce and Industry (VCCI), attributed this rate, which is also the highest in the country, to the region’s challenging business environment. 

Lam noted a consistent decline in total investment capital in the Mekong Delta, particularly evident in 2022 and 2023.

Specifically, while state investment remains stable, foreign investment has notably decreased, indicating businesses’ diminishing resources and weakening prospects. 

Compared to other economic regions, the Mekong Delta demonstrates comparatively lower business resilience.

In 2023, the region witnessed the establishment of 11,381 new businesses, yet 10,514 businesses ceased operations or dissolved, leaving only 867 new enterprises, primarily small-scale ventures. 

This presents a significant challenge for the Mekong Delta, given its limited and weakened production and business capabilities.

Nguyen Phuong Lam, director of the Vietnam Chamber of Commerce and Industry, speaks at a business meeting in Can Tho City, located in Vietnam’s Mekong Delta region, March 28, 2024. Photo: Chi Quoc / Tuoi Tre

Furthermore, foreign investment in the region continues its downward trend. 

In 2023, the entire region attracted 139 projects, with Long An Province accounting for 80 percent of the total investment capital, approximately US$740 million. 

However, this figure falls short when compared to southeastern Binh Phuoc Province’s $747 million and is only one-fourth of northern Quang Ninh Province’s investment.

Despite facing numerous challenges, Lam highlighted the findings of a recent VCCI survey indicating a high level of optimism among businesses for 2024. 

Particularly, 75.8 percent anticipate revenue growth, 74.1 percent expect increased profits, and 57.9 percent foresee expanding job opportunities. 

“I’m surprised at these results, considering the prevailing difficult economic conditions,” Lam said.

“Yet I acknowledged the resilience and positive outlook demonstrated by businesses.”

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