Supporting enterprises in overcoming difficulties in Covid-19 pandemic

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Producing garments at Dong Tien Joint Stock Company (Bien Hoa City)

According to the Department of Planning and Investment, the estimated damage of the Covid-19 pandemic to businesses in the province in the first 6 months of 2020 would be up to 9 trillion VND compared to the same period in 2019. The reason is that many businesses are having difficulties in output for products, so they have to temporarily reduce production and business.

Enterprises and businesses face the pandemic

The Covid-19 pandemic is still complicated in many countries around the world. To prevent the pandemic from spreading to many countries, many orders from foreign partners in the US and Europe have also been halted for import because of the low rate of procurement. In addition, many shipping agents also refuse to transport orders of companies to the affected areas. Many enterprises in the province have rotated their work temporarily to until the peak of the pandemic passes.

Mr. Bui Quang Hoi, Director of Bui Chan Hung Co., Ltd. (Bien Hoa City) shared: “The company's wooden products are mainly exported to the US, our partner planned to import the products when the pandemic passes. As a result, the company's goods are temporarily stored in the warehouse, waiting for the post-pandemic to be exported. The goods have not been exported, so the partner has not paid us, resulting in many difficulties in capital”. Hoi also expressed that he hopes the province will soon implement urgent measures to support enterprises to extend old loans and lend more capital at low interest rates to maintain production and find other markets to sell products.

Other businesses in the area severely affected by the Covid-19 pandemic also have the utmost expectation to enjoy the capital support package, loan interest rate reduction, debt freezing, tax payment time extension, etc. to overcome this tough time. Thus, businesses would be stronger to restore production and business after the pandemic.

Mr. Nguyen Van Hoang, General Director of Dong Tien Joint Stock Company (Bien Hoa City) said that the company had to give employees a rotating break because the goods exported to Europe and the US temporarily stopped due to the pandemic. Currently, the company hopes that the Government and the province will quickly implement solutions to support businesses on preferential loans to make payment to more than 9,000 employees.

Solutions to support enterprises and businesses​

Producing garments at Dong Tien Joint Stock Company (Bien Hoa City)

According to the statistics of the Department of Planning and Investment, the province has more than 36,000 businesses established over the years. In occurrence of the pandemic, businesses have been proactive in production and business to reduce damage to the lowest level. However, they still need timely support from the Government and the province to face and overcome difficulties caused by the Covid-19 pandemic.

Dong Nai is implementing the Prime Minister's Directive No.11/CT-TTg dated March 4, 2020, on urgent tasks and solutions to overcome difficulties for production and business, ensuring social security against the Covid-19 pandemic, in particular, reducing the interest rate for new loans of industries and sectors affected by the Covid-19 pandemic in accordance with the central policy, rescheduling the repayment, exemption and reduction of interest rates under credit contracts signed and reviewed for new loans to restore and maintain production and business. Chairman Cao Tien Dung also required departments, branches and localities to continue to strongly improve the investment and business environment, focusing on resolving investment procedures for businesses to soon start projects and put works into operation and use. It is neccessary to carry out labor trainings and resolve employment issues in 2020; and speed up the implementation of projects and disburse the remaining public investment plans of 2019 and 2020.

According to Pham Quoc Bao, Deputy Director of the State Bank of Vietnam, Dong Nai branch, the bank has asked credit institutions in the province to monitor the situation of production and business of enterprises, citizens and customers influenced by the Covid-19 pandemic to timely apply supportive measures and remove difficulties such as rescheduling loan repayment and considering appropriate loan interest reduction and exemption. 

Vi Quan