Aug 17, 2021 / 16:08

Vietnamese Gov’t targets 1 million businesses to access credit support package

No efforts would be spared to prevent a public health crisis and subsequent socio-economic crisis, for the country to return to its normalcy as soon as possible.

At least one million enterprises and customers affected by the Covid-19 pandemic are expected to have access to credit support programs from banks.

 Keeping production safe at Newwing Interconnect Technology Bac Giang. Photo: Bao Bac Giang

The target is included in the Government’s draft resolution to address concerns from the business community amid severe economic consequences from the pandemic, with the ultimate goal focusing on protecting public health and maintaining the operation of businesses.

“No efforts would be spared to prevent a public health crisis and subsequent socio-economic crisis, for the country to return to its normalcy as soon as possible,” stated the draft resolution.

Other key objectives include around 160,000 enterprises to benefit from the exemption and freezing of tax payments or land rental fees, while 50,000 are set to return to operation.

Along with these goals, the Government expects hundreds of thousands of enterprises to be included in the program on subsidy for electricity, water, telecommunication bills as well as wage payment support.

The draft resolution noted businesses play a key role in socio-economic development, however, the current Covid-19 outbreak is putting them at unprecedented challenges for survival.

In this context, timely and drastic measures are necessary to support enterprises to maintain operation and keep workers in jobs, it added.

Major solutions

To realize these goals, the resolution called for a flexible approach in the Covid-19 fight to ensure the movement of goods and avoid disruption to supply chains.

The government requested ministries and agencies to consider including workers at key economic zones and industrial parks into the priority list for vaccination, seen as a key measure to support businesses in the Covid-19 fight.

Meanwhile, the draft resolution gives localities and enterprises the authority to be responsible for their own production methods that are in line with the actual Covid-19 situation.

Since 2020, the government has been providing support programs in form of freezing and waiving taxes and fees for economic sectors severely hit by the pandemic. Given the ongoing outbreak, however, the draft resolution expected these programs to be expanded to cover more businesses and individuals.

The draft resolution also stressed the necessity to simplify procedures in issuing or extending working permits for foreign experts or streamline isolation procedures for workers coming from different provinces/cities.

Another key priority noted in the draft resolution is to push for the vaccination diplomacy to secure sufficient vaccine supplies for Vietnam, along with the adoption of vaccine passports to soon reopen the economy when the conditions turn favorable.

Last month, 16 major commercial banks, accounting for 75% of total outstanding loans, agreed to cut interest rates by 0.5-2 percentage points per annum for existing loans worth a total of VND6,800 trillion ($298 billion).

A representative from State-owned Vietcombank noted the total amount of interest foregone in support of customers for the remaining six months of the year is estimated at VND4 trillion ($175 million), while that of from Agribank could be around VND5.5 trillion ($240.7 million).

According to Vice Governor of the State Bank of Vietnam Dao Minh Tu, nearly 800,000 customers have received banks’ support in form of freezing and waiving of interest rates with total outstanding loans of VND2,000 trillion (US$87.73 billion).

So far, around VND18.8 trillion in interest rates were foregone by banks in support of customers, Tu said.