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More solutions needed to support enterprises when costs are high

16:25 | 11/07/2022

VCN - Talking to a reporter of Customs Newspaper, Mr. Bui Danh Lien (photo), Vice Chairman of the Hanoi Transport Association, said that many enterprises face difficulties but cannot access capital, because the lending regulations are still tight. Therefore, more reasonable financial solutions are needed.

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More solutions needed to support enterprises when costs are high
Mr. Bui Danh Lien

Could you tell us about the impact of the increase in gasoline prices on the current business operations?

The current sharp increase in gasoline prices is having a great impact on all aspects of economic life and people. For enterprises, after the devastation of the Covid-19 pandemic, the high price of raw materials and the increase in gasoline prices also creates a great risk of disrupting the supply chain, negatively affecting the recovery of the economy. Therefore, we need to closely monitor market movements as well as find solutions to restrain gasoline price increases.

The increase in the price of input materials will cause the operating costs of enterprises to increase. Previously, the cost of gasoline accounted for about 35-40% of the cost. Now, it accounts for 45-50% of the operating cost of the transport enterprises. The higher costs are, the more difficult it is for enterprises to be profitable, many transport enterprises have had to leave their vehicles "logged" at the yard, unable to operate in order to endure through the difficult period.

How will this affect the capital of enterprises?

Of course, when enterprises incur high costs they can’t make a profit which greatly affects capital. But for many transport enterprises, due to difficult operations, they do not focus much on investing and purchasing more equipment, so capital is not a big problem. However, when the economy stabilizes again, they have to find a way to borrow money.

The problem for most Vietnamese enterprises in general, and transport enterprises in particular, is the difficulty in accessing capital. To borrow capital, banks all have strict regulations on collateral, cash flow for repayment and credit rating of the enterprises. Moreover, capital sources with normal interest rates are difficult for them to access and preferential interest rates such as programs being implemented by many banks as well as interest rate support program 2% of the Government, enterprises are still struggling to know how to approach.

With the above problems, in your opinion, what is the solution to support enterprises in the current price increase?

First, in terms of capital, enterprises need practical support policies, or agencies to guarantee loans for them. For enterprises in the transportation industry, where the cost of gasoline is greatly increasing, I hope that the management agencies can advance a certain amount of money to support and compensate these firms for a certain period of time. Currently, the state's resources are still pouring into infrastructure investment projects, but if transport enterprises have to "lay still" because they do not have operating costs, it is very wasteful and will not support the recovery of economy.

Regarding gasoline prices, the Ministry of Finance and the Ministry of Industry and Trade have provided a lot of support to ensure a reasonable increase level in price, in which the resolution of the Ministry of Finance on reducing tax on environmental protection of gasoline is a positive. But in my opinion, the management agencies should make a change to find cheaper sources of gasoline and production materials, and be able to socialize the import supply, as well as manage gasoline. The State can also offer a gasoline support package to support gasoline prices and stabilize production and transport activities of enterprises.

Thank you, Sir!

Notice No. 179/TB-VPCP dated June 22, 2022, conclusion of Deputy Prime Minister Le Minh Khai - Head of the Steering Committee for Price Management at the meeting on June 13, 2022 on price management of some groups of products, has requested the management ministries and branches to coordinate with the People's Committees of the provinces and centrally-run cities to focus on removing difficulties for production and business to prepare a sufficient supply of goods to meet demand. consumption, facilitating the circulation and distribution of goods and services. In case of large fluctuations in prices, based on the provisions of the Law on Prices to propose and organize the implementation of appropriate price stabilization measures.

The Ministry of Industry and Trade proactively manages to ensure that the domestic gasoline supply is not interrupted on the basis of assessing the supply ability from domestic production sources and imported sources; closely monitor world price movements to have an appropriate plan to control domestic gasoline prices, flexibly use the Petroleum Price Stabilization Fund to limit the increase in domestic gasoline prices during volatile operating periods. The Ministry of Finance actively cooperates with the Ministry of Planning and Investment and the State Bank of Vietnam to continue promoting the work of synthesizing, analyzing, forecasting, and pre-elaborating specific, detailed scenario and close to the actual situation which helps the management and administration of the Government and ministries and branches.

By Huong Diu/ Binh Minh