Throwing a lifeline to businesses amid COVID-19 difficulties

After coronavirus broke out last year at Phu Yen Vitosa Green Technology Co., Ltd., the producer of solar water heaters based in Tuy Hoa city, the company fell into the doldrums with a sharp decline in order intake from business partners inside and outside the province. The company also failed to access preferential capital sources to cover expenses.

Likewise, CID Vietnam Security JSC, based in the same city, has also been mined in hardships. According to company chairman Nguyen Quoc Sinh, despite sharp falls in revenue the company still has to pay more than $1,740 in bank interest and over $17,000 in wage payment for its 100 labourers each month.

For the past two years, many businesses in the province have incurred bad debts and could not borrow from banks to pay for labourers during work delays and to rebound production.

As a result, credit institutions based in Phu Yen are busy rescheduling debt payment deadlines for their customers, simultaneously providing new loans to qualifying customers for production and business stabilisation.

Responsive to the call from the State Bank of Vietnam to accompany businesses, these credit institutions across the province have slashed lending rates up to 2 per cent for existing loans to mitigate customers’ burdens.

According to Tran Huu The, Chairman of Phu Yen People’s Committee, the province has taken wide-ranging measures and created conditions for businesses and entrepreneurs to overcome difficulties.

“I am so happy knowing that many firms have not only flexibly applied stay-at-work schemes to maintain production and business, but have also looked into new business models such as availing of e-commerce benefits to expand distribution channels and reach more customers.”

More than that, The said, many businesses have contributed to the national COVID-19 vaccine fund, donated medical equipment, and supported local needy people by various means.

The admitted that measures on pandemic prevention and control, as well as policies to support labourers and businesses, have often been inconsistent and inflexible. Hence, making business development the mainstay for socioeconomic development in Phu Yen, the province is scaling up support for business development.

“The pandemic remains unpredictable, so I do expect businesses and entrepreneurs in the province to best promote the great solidarity spirit, pushing up digital transformation in investment and business activities, and overcoming the current turbulent time to reach success,” said The.