Feb 19, 2020 / 13:59

Hanoi gives a hand to enterprises affected by Covid-19

The Hanoitimes - Small and medium enterprises are among the groups hardest hit by Covid-19, mainly due to its vulnerability to disruption of capital for production, and supply chains.

In addition to the ongoing efforts of reshuffling and reducing unnecessary costs for enterprises, Hanoi is providing a wide range of supporting measures to enterprises hurt by Covid-19, according to Tran Thi Phuong Lan, vice director of Hanoi’s Department of industry and Trade.

 Illustrative photo.

This is not solely a matter of removing hindrances for business operations as the major issues of concern for them at present are input materials and markets for their products, Lan said, adding more measures should be worked out in terms of lowering interest rates, tax incentives or debt payment.

Hanoi would continue to invest in commercial infrastructure, including digital market, e-commerce platform, while pushing for more administrative reforms towards greater transparency and convenience for enterprises, Lan stated.

Due to the ongoing Covid-19 epidemic, China’s decision to extend the closure of border markets and informal cross-border trade until late February is putting pressure on local traders and companies.

In case the epidemic persists in the next few months, local enterprises are predicted to face shortage of input materials for production, especially those in economic sectors that heavily rely on Chinese materials and markets such as textile and garment, rubber, plastic, agricultural product exports.

Lan said companies are considering importing materials from other countries alternative to China. However, this is only a short-term solution as prices of materials from those markets are much higher than those in China, not to mention high transportation costs and long-distance transportation.

These are major factors influencing prices of final products and production plan of enterprises, Lan added.

Moreover, the official said small and medium enterprises are among the groups hardest hit by Covid-19, mainly due to limited financial capabilities, small scale production, and vulnerability to disruption of capital for production and supply chains, and others.

Lan said her department is coopering with its counterparts in other provinces/cities in reviewing lists of agro-forestry-fishery products that may become overstock for distribution in Hanoi. 

Lan added the department also plans to hold weeks of agricultural products in Hanoi, creating a platform for cooperation between producers and distributors.