Supporting business: being provided “breathing machine” but lacking “oxygen”

VCN - The Government’s support packages were issued in a timely manner and suited the difficulties of businesses affected by the Covid-19 epidemic, but according to businesses, these supports have not been as expected.
supporting business being provided breathing machine but lacking oxygen The Ministry of Finance takes the initiative in fiscal measures to support the prevention and control of Covid-19
supporting business being provided breathing machine but lacking oxygen Government approved support package of more than VND180 trillion for extension of tax and land rent payment deadlines
supporting business being provided breathing machine but lacking oxygen Dong Thap Customs focusing on preventing pandemic and supporting businesses
supporting business being provided breathing machine but lacking oxygen Supporting industries secure more orders following Chinese supply disruptions
supporting business being provided breathing machine but lacking oxygen
Textile 10/10’s leaders said the cash flow of the business was all in the goods. Photo: H. Diu

"Saving" businesses must be like "fighting fire"

In the meeting between the Vietnam Chamber of Commerce and Industry and enterprises of Hanoi Association of Small and Medium Enterprises (Hanoisme), firms frankly stated the situation as well as made comment on the Government's business support programme, ministries and sectors in the situation of the Covid-19 epidemic.

Than Duc Viet, General Director of 10/10 textile Joint Stock Company said businesses have to try their best to maintain production and be ready to fight the pandemic. However, business activities face many difficulties due to the partners also influenced by Covid-19.

“Typically, the apparel industry's business will turn around after sixmonths. But customers either stop or cancel signed orders, even, many customers have asked to delay the order payment time up to 120 days, instead of 30days as before. Therefore, the status of 10/10 textile Joint Stock Company is goods in stock, making the entire cash flow of the company completely out of goods, while fashion items are seasonal,” Viet said.

These difficulties left more than half of 10/10 textile Joint Stock Company’s workers unemployed. This situation hitsnot only businesses in the textile industry but also many other export businesses such as furniture, leather and footwear.

Therefore, all businesses agree this situation of "saving" businesses must be like "fightingfire", this is the "golden time" to prevent epidemics and save businesses, so it must take full advantage ofsupport measures andsupport packages issued by the Government.

Need a separate "playground"

According to To Nhu Toan, Chairman of the Board of Directors of Van Phu Invest Joint Stock Company, the Government has made policies to support businesses in a very timely fashion, but the criteria for implementation have not been seen. The criteria from tax rescheduling and debt extension are not available, if it takes a long time, enterprises will fall into the "bad debt" group, they will lose credibility, making it difficult to attract foreign investment. Moreover, by the time there is a mechanism, they have to wait for the bank to reviewdocuments, perhaps many businesses have also "died" already.

In addition, Toan also said that the support policies should clearly distinguish between large and small and medium-sized enterprises andneed to have "own playground" with own criteria, otherwise, the support can "drift away" about big businesses thanks to "relationships", benefits.

supporting business being provided breathing machine but lacking oxygen
Enterprises at the meeting with the VCCI’s leaders

In particular, Vo Viet Dung, Chairman of the Board of Directors of South Hanoi Food Processing Group (SHF) expressed his concern about inconsistency in the policy between leading agencies and implementing levels.

Dung frankly stated the fact that as soon as he learned about the policy of reducing interest rates, restructuring debts of the State Bank and commercial banks, on April 9, he contacted a branch of the bankfor advice and support. However, the representative of this bank branch said there is currently no mechanism for debt restructuring and debt rescheduling.If the company does extend the debt, then credit ratings can be classified as a bad debt later.

Facing this information, Vo Viet Dung said that such support is "meaningless", businesses will not dare trade their fortunes and long-term prestige for short-term benefits.

“Businesses are like patients, governments and banks are doctors, support packages are ’breathing machine‘, money and interest are oxygen. At the current situation is provided ’breathing machine‘, but not for ’oxygen’”said the leader of SHF.

Agree with the above reflections, Vu Tien Loc, Chairman of VCCI, said that enterprises are the "lifeblood" and "kitchen" of the economy, if they arenot supported in time, the consequences will be great. Therefore, State agencies need to have practical, consistent support measures, implemented as soon as possible; avoiding each one makes a different type.

In addition, he also said the Government should set up a Steering Committee or working group to control and review support activities for businesses, helping these activities be effective and right where needed support.

By Huong Diu/Quynhlan

Related News

AEOs make great contributions to Vietnam’s trade development

AEOs make great contributions to Vietnam’s trade development

VCN – Currently, there are 76 Authorize Economic Operators (AEOs) across the country. The operators have made great contributions to Vietnam’s trade in goods.
Businesses cooperate to develop advanced technology

Businesses cooperate to develop advanced technology

VCN- In order to foster development of the high-tech sector, one of factors is close cooperation between businesses to improve competitiveness and promote innovation.
Note for businesses when converting green and digital

Note for businesses when converting green and digital

VCN - Green transformation and digital transformation have been identified by businesses as a mandatory path if they want to develop long-term. However, there are many issues that businesses need to pay attention to right from the start of the transformation if they want to achieve efficiency.
Businesses will be confident in exporting to the EU when they have enough green capacity

Businesses will be confident in exporting to the EU when they have enough green capacity

VCN - It is extremely necessary to grasp and understand the new EU regulations such as CBAM and EUDR. Thereby, businesses have plans, measures and roadmaps to adjust export production activities, maintain and develop export markets.

Latest News

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.

More News

Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Read More

Your care

Latest Most read
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural and aquatic products could penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Mobile Version