Dong Nai endeavours to help affected firms restore production

​Export garment production at Dong Nai Garment Corporation

According to Chairman of PPC Cao Tien Dung, supporting businesses to restore their production and business in the COVID-19 situation is one of the central tasks of the province, as industry plays a leading role in this province.

Timely removing difficulties for businesses

Over the past time, the Dong Nai Industrial Zones Authority has conducted a survey to capture the performance of businesses in industrial zones. As a result, 518 enterprises showed that they were affected by the COVID-19 epidemic. In fact, this number may be even larger, because in industrial zones there are nearly 2 thousand domestic and FDI projects is in operation. Products of enterprises are made up of 80% for export on average, 20% for consumption in the domestic market. In which, there are enterprises with the proportion of exported goods accounting for more than 90%. When a pandemic happened, the transportation of goods was difficult, trade with many countries was delayed, so the number of enterprises was affected quite heavily.

Ms. Phung Thi Bich Huong, Director of Dong Nai Customs Department said: “The Department has worked with major exporting enterprises in the province to grasp the common difficulties and find ways to support enterprises. As a result, 125 enterprises with large production and export activities in the province were all adversely affected by COVID-19. The export market is narrowed, businesses have to find new markets to continue production.”

At the peak of COVID-19, over 200 enterprises in industrial zones were directly affected, of which more than 60 enterprises had to temporarily stop operations due to no orders and lack of input materials. Starting from June 2020, with the efforts of enterprises and the support of the province, the production and export Government gradually recovered.

Mr. Peter Wu, Head of Taiwan Trade Association in Dong Nai shared: “Taiwanese enterprises have invested in this province about 270 projects with a total registered capital of nearly USD 5.4 billion. When disease occurred, the majority of enterprises were affected production and business. Specifically, enterprises manufacturing and exporting decreased by 20-30% compared to the same period last year and to maintain production, they have to open new markets and new products to meet customers' requirements.”

Not only Taiwanese enterprises, but Japanese, Korean, Thai, and Samoa enterprises, which are countries and territories that have large investments in Dong Nai, also have to apply many methods to be able to sell to many different countries.

Timely business supporting

Export garment production at Dong Nai Garment Corporation

When COVID-19 occurred, the Provincial People's Committee instructed relevant units to focus on urgent tasks and solutions to remove difficulties for production and business, ensuring social security with policies on credit, labor, social insurance and especially tax policies. In order for enterprises to reduce difficulties, they can maintain production and wait for the epidemic to settle, they will "bounce" in production and export, in order to support enterprises to reduce difficulties, they can maintain production and wait for the epidemic to settle, they will “bounce” in production and export.

According to the State Bank of Vietnam - Dong Nai branch, thousands of customers have been rescheduled for debt payment, loan interest exemption or reduction with the amount of over 5 trillion dong. Banks and credit facilities in Dong Nai also loaned more than VND 49.3 trillion to nearly 16 thousand customers, popularly lower interest rates from 0.5 to 2.5% compared to before the pandemic.

Mr. Nguyen Van Cong, Director of the Provincial Tax Department said: “There are more than 2.3 thousand subjects entitled to tax extension and land rent extension with over 1.2 trillion dong in tax extension. Currently, the Provincial Tax Department is considering and evaluating over 46 dossiers of business households that are eligible for support according to the Government's regulations.”

Chairman of the PPC Cao Tien Dung assessed: “The COVID-19 situation greatly affected enterprises in Dong Nai, so departments and localities had to quickly support enterprises to maintain and restore production. Solutions given by the Government on credit and tax extension need to be deployed quickly, ensuring that all affected businesses receive timely support to restore production and business”. When enterprises recover production and business soon, they will greatly contribute to ensuring jobs and income for employees, and also greatly contribute to state budget revenues. Dong Nai is one of the top provinces in terms of exports and budget revenue, so if Dong Nai recovers quickly, it will help stabilize the domestic economy.

Vi Quan