Long An accompanies enterprises to overcome difficulties

Trying to maintain production and business

Texray Company Limited (Loi Binh Nhon Industrial Complex, Tan An City) is a 100 percent foreign-invested company specializing in fashion apparel. According to a representative of the company, since the Covid-19 epidemic occurred, the company has been reduced by nearly 40 percent of orders. There are products that have been completed, but customers leave the export time. Currently, the import of raw and auxiliary materials is also delayed because the ships arriving at the port must be inspected and sprayed with disinfectant. Salaries of foreign management experts are reduced by 10 percent. However, the company still maintains jobs for workers and has no plans to reduce personnel. The company only reduces a few indirect workers when their contracts expire or those are on probation.

The Covid-19 epidemic has affected almost all production and supply of goods in many sectors (Phôt: At Jia Hsin Co., Ltd., Cau Tram Industrial Park)

Avery Dennison Ris Vietnam Co., Ltd (Long Hau Industrial Park, Can Giuoc district) produces and supplies all kinds of labels in fashion, garment and leather shoes. Its leaders said that despite many difficulties due to epidemics, the company has not reduced workers and has maintained jobs for about 3,000 employees. However, if the epidemic persists, the company will face many difficulties. The company hopes to access loans from banks to pay wages for employees or reduce interest rates on previously borrowed credit packages.

Retail trade is one of the sectors most affected by the Covid-19 epidemic. At shopping centers and supermarkets, the number of customers has decreased from February to now. According to Co.opmart Tan An - Nguyen Thi Hoang Anh, the rental revenue of the store dropped sharply. Many stores have almost no revenue such as fashion, home appliances, etc.

Director of Moc Hoa Commercial Joint Stock Company - Nguyen Van Be Hai said that due to the disease of Covid-19, the Department of Industry and Trade proposed that the Company increase its stock of goods in order to be ready to meet the necessary sources of goods for consumers. Sales increased in February and March but at this time, reduced purchasing power caused inventory, increased costs, including interest rates on bank loans. The company wishes the bank will reduce interest rates to the maximum to maintain reserves to serve the people.

Be proactive in supporting businesses

In Long An, most enterprises are small and medium-sized enterprises. They access capital from banks and want to reduce interest rates, extend the debt period to overcome difficulties. In order to share difficulties with customers, the State Bank of Long An branch implemented Circular 01/2020 TT-NHNN, dated March 13, 2020, of the State Bank of Vietnam to support businesses that were affected by Covid-19 disease.

Director of Vietnam Investment and Development Commercial Joint Stock Bank Long An branch (BIDV Long An) - Vo Minh Dung said that the bank has quickly implemented Circular 01 to customers. By the end of April 2020, BIDV Long An has restructured the repayment period for 12 customers with an outstanding balance of about 316 billion VND. In addition, 426 customers were exempted or reduced interest rates with an outstanding balance of about 1,110 billion VND; the exempted interest amount was reduced by nearly 1.2 billion VND. The average interest rate that the branch has reduced for customers is about 2.5 percent per year, the lowest interest rate is 5.5 percent per year. The specific reduction depends on each field and the extent of the disease affected by the enterprise; etc.

Retail trade is one of the sectors most affected by the Covid-19 epidemic

In addition, Vietcombank, Vietinbank, and so on have restructured repayment terms, kept the debt group for debts of customers who are unable to pay, reduced the maximum lending interest rate of 2 percent per year depending on the extent of customer influence. In addition, the banking system and businesses review and evaluate production and business options, financial balances and cash flows to appropriately advise and support for the customers.

The Director of the State Bank of Long An - Dao Van Nghiep branch said that until April 25, the banking system in the province has reviewed, restructured and extended for 2,200 enterprise and individual customers with an outstanding balance of nearly 6,560 billion VND; provided new loans of VND 1,604 billion to 887 customers with preferential interest rates (down from 0.5 percent to 2.5 percent compared to before). In particular, the 62,000 billion VND package (including 16,000 billion VND of the State Bank) with 0 percent interest rate is being implemented by the Social Policy Bank under Decision 15 of the Prime Minister. This is one of the practical solutions to support customers to recover production and business.

Tax policies and tax support are also interested by businesses. According to the Director of the Provincial Tax Department - Nguyen Van Thuy, up to now, Long An has had about 8,200 enterprises (53 percent) and 14,400 business households (52 percent) that are extended to pay taxes, the total amount of tax extended is about 1,700 billion VND. This is the result that the Tax Department has drastically implemented since the draft Decree 41/2020/ND-CP of the Government and has been standardized right after the issuance of the decree.

According to Long An Electricity Company, about 468,800 customers have been reduced their electricity costs due to the impact of Covid-19 disease in the whole province. In addition, the company also reduced the electricity costs directly to the prevention and control facilities of Covid-19 which bought electricity from units of Long An Electricity after being certified by the Provincial People's Committee.

In a dialogue with businesses affected by Covid-19 epidemic, Chairman of the Provincial People's Committee - Tran Van Can shared difficulties of businesses and directed departments, agencies, local authorities to quickly coordinate to remove these difficulties. In implementing solutions to support businesses in accordance with the Government's documents, Long An is committed to directing the relevant authorities to perform drastically, promptly and with the right subjects; to support the right subjects; to ensure publicity, transparency; and to absolutely avoid any interference and negativity in support./.

By Mai Huong - Translated by Pham Ngan

Source: http://baolongan.vn/dong-hanh-cung-doanh-nghiep-vuot-kho-a94912.html