Ho Chi Minh City creates a "push" to help small and medium enterprises recover production

	Thanks to decrease raw material prices, plastic enterprises have great profits
	Top 500 largest Vietnamese enterprises for 2020 announced
	Group benefits in equitization, divestment, restructuring of SOEs strictly forbidden

Enterprises need many supportive policies to restore production and develop

Many obstacles for recovery

According to the report of the People's Committee of Ho Chi Minh City, under the impact of the Covid-19 pandemic, for the first time the city's economy grew below 1.2%.It was also the first time that over 29,000 enterprises dissolved and suspended operations with registered business capital decreasing by more than VND149,000 billion.

Besides, there is an uneven growth in the city's industrial production. As of October 2020, the industrial production index was estimated to decrease by 4.9% over the same period in 2019. In which, the four major industries of the city were estimated to decrease by 0.1% (in the same period last year they increased by 6.1%).

Cao ThanhBinh, Deputy Head of the Economic - Budget Department of Ho Chi Minh City People's Council, said that Ho Chi Minh City has implemented many solutions to support businesses during and after the Covid-19 pandemic according to Plan 1455/KH-UBND dated April 21, 2020 of HCMC People's Committee.

However, the survey shows that up to now, there are still more than 84% of enterprises in the province still in difficulties; about 76% of businesses do not have access to support packages; only 10% of businesses can access the policy of credit interest rate exemptions or reduction of banks. Especially, no enterprises have access to the 0% loan package to pay employees.

This fact shows that the policy is always delayed, providing no timely support to enterprises, especially in the process of implementing policies to support small and medium enterprises.

In particular, the competitiveness of small and medium enterprises is limited, the policy to support trade promotion is low and only focuses on state units.

Another obstacle is that small and medium enterprises have a lack of production space because the land fund for supporting small and medium enterprises has not met and is not suitable with the needs of businesses.

Deputy Director of the State Bank of Ho Chi Minh City Branch, Nguyen Hoang Minh, saidthe State Bank has implemented credit support policies for businesses. In which, loans to small and medium enterprises are very high with more than 74% of total loans.

In 2020, the bank interest rate was reduced three times. By the end of October, the short-term lending rate for five priority areas was only 4.5% per year, equal to that of other countries in the region and equivalent to the lending interest rate in foreign currency, creating very favorable conditions for financial capacity improvement, competitiveness and post-pandemic business reconstruction.

However, there are still enterprises that have not been able to access loans because they do not have collateral; the financial situation of the business is not transparent and clear; lack of business plan.

Proactively supporting businesses

Ho Chi Minh City has been implementing many solutions to successfully implement "dual tasks" in a new normal state, with most key contents such as policies to support people and businesses.

Deputy Director of the Department of Industry and Trade of Ho Chi Minh City Nguyen Phuong Dong said that the Department of Industry and Trade of Ho Chi Minh City will coordinate with relevant departments to build planning of industrial parks in the city. Effectively exploit industrial zones and clusters in the direction of gradually increasing the proportion of high-tech enterprises and building "associated production clusters", high-rise factories, subdivision planning and renting prices in line with demand of small and medium enterprises.

At the same time, to implement the Supporting Industry Development Program in the city from 2019 to 2025; coordinating with the Management Board of export processing and industrial zones to review land fund for industrial development and supporting industries; proposing to arrange land fund with a certain rate in industrial zones with suitable area size and rental price bracket for SMEs.

Le Thi Huynh Mai, Director of Ho Chi Minh City Department of Planning and Investment affirmed that the unit will continue to reform administrative procedures and create more satisfaction when businesses implement business and investment procedures.

In addition, Ho Chi Minh City is also developing a group of solutions to invite the cooperation and support of enterprises and big economic groups of the city to help small and medium enterprises in the direction of mutual benefits in investment cooperation. To encourage industry associations of the city to implement specific solutions to strengthen domestic linkages, focusing on exploiting the domestic market.

Nguyen Hoang Minh said that in the year-end period, the capital needs of enterprises and economic sectors are very high. The State Bank has directed commercial banks not to refuse to provide loans to eligible enterprises. On the basis of the current liquidity of commercial banks, there is no shortage of capital for production and business activities in the area.

The banking industry still prioritizes short-term capital for five areas, including: agriculture, rural, export, supporting industries, production of high-tech products and small and medium enterprises. At the same time, it is committed to providing support solutions for small and medium enterprises that do not have collateral but have clear, transparent financial statements, and have good business plans.