The Impacts OfEconomic Recession On Enterprises In The North Of Vietnam

Economic Recession (ER) is an essential phase of economic cycle. The 2008 - 2009 economic recession had a strong impacts on the economy in general and the business activities of enterprises in particular. The main objective of this study was to analyze the effect of ER on business activities and workers’ life of some representative enterprises in the North of Vietnam, and propose some key sulutions to minimize the negative impacts of ER and improve the adaptability of enterprises to recession conditions. The systematical and participatory approaches were used. Data collection and analysis used in this study were data synthesis, direct survey of representive companies in the North using questionaire, consultancy, and comparision methods. The study showed that enterprises have been clearly impacted by the ER in all production and business processes. The main impacts were high input prices, limited resources, difficulties in labor and loans, instability in production and consumption and decline in the enterprise performance. To minimize these negative impacts, enterprises should apply multiple solutions and at the same time with the government supports.