Vinh Phuc Province Further Removes Difficulties against Businesses Affected by Covid-19

9:53:55 AM | 30/6/2020

Facing the complicated, uncertain development of the Covid-19 pandemic, many companies in Vinh Phuc province are struggling with labor issues. Restrictions on entry have led to shortages of experts and highly qualified workers, shrinking consumption and export markets and short inputs for manufacturing activity. They may face operational suspension on shortage of inputs. Facing that situation, Vinh Phuc province has introduced solutions to remove difficulties against businesses.

For the automobile and motorbike industry, apart from two giant manufacturers, Honda and Toyota, which halted production from the end of March, Piaggio Vietnam also reduced its capacity by 50% due to shrinking domestic and export markets and ceased entire operations from April 15 to 20, 2020. The output of these three manufacturers is forecast to decline by 20-30% as compared to 2019 and force parts vendors to cut an equal output.  Meanwhile, electronic component manufacturers are estimated to slash the output by 15-20% over 2019. Construction material producers are forecast to reduce the output of ceramic tiles by 20% against 2019. Leather and footwear companies are most hurt by the Covid-19 pandemic as they may have to cut their production by 40-50% in 2020 from a year earlier. The output of steel billet and steel production projects is expected to fall by 20%. Agricultural companies engaged in fertilizer and animal feed production may reach 80% of the output in 2019. The trade and service sectors may accomplish less than 30% of revenue in 2019. In addition, about 100,000 workers may face employment and income threats due to the Covid-19 pandemic.

Before this reality, the Vinh Phuc Provincial People’s Committee has directed relevant agencies and units to focus on solving hardships and obstacles against businesses. In particular, the State Bank of Vietnam - Vinh Phuc Branch has instructed local commercial banks to restructure debts, reduce interest rates, and extend and postpone debt repayment for businesses affected by the plague. The Vinh Phuc Tax Department has assisted local enterprises to extend the deadline for paying taxes and land rents. Relevant agencies have promptly supported laborers laid off by the pandemic; supported enterprises to borrow money to pay wages to their laid off employees or allowed them to delay contributions to the retirement or survivorship fund.

At the same time, Vinh Phuc Provincial People's Committee has asked localities to carry out consistent solutions to remove difficulties for businesses, focused on streamlining administrative procedures for investors, promptly settled proposals relating to business activities; supported investors of industrial zone infrastructure and projects approved by the Provincial People's Committee to tackle emerging problems in land compensation and ground clearance to accelerate the progress of projects.

Tran Ngoc (Vietnam Business Forum)