Hanoi business community calls for favorable policies to aid recovery process
While enterprises are gradually resuming operation, they are still facing difficulties from the lack of working capital, high prices of input materials and logistics fees.
Businesses in Hanoi are in need of favorable policies from the local authorities to speed up their recovery process as the Covid-19 pandemic has disrupted supply chains and subsequently led to high prices of input materials.
| Production of electricity equipment at A Chau electricity plant, located at Hoa Lac hi-tech park. Photo: Thanh Hai |
A recent inspection of anti-Covid-19 measures at the 1-5 Automobile factory and Bac Tu Liem industrial park revealed 100% of manufacturing plants have resumed operation.
CEO of Minh Cuong Mechanics-Construction-Trading Duong Minh Cuong said the company is actively looking for new markets and partners to keep its business running.
“From this April, the company would adopt the digital transformation process in mechanical production including the use of robots,” he told Hanoitimes.
General Director of Refrigeration Electrical Engineering Bach Khoa Dinh Van Thanh said the firm’s revenue in 2020 declined by 40% against last year.
“In addition to renovating production chains, we are focusing on improving product quality and study new markets, especially in the Southeast Asian region,” added Thanh.
While enterprises are gradually resuming operation, they are still facing difficulties from the lack of working capital, high prices of input materials and logistics fees.
Vice Director of Saigon-Hanoi Beer Corporation Le Viet Quy said production capacity in 2020 declined by 33% against the plan and 25% year-on-year.
In February, the brewer’s sale figure stood at 1.8 million liters of beer, below its break-even point.
To address the lack of working capital, enterprises called for banks to continue lowering interest rates and extend the deadline of payment; waiving and freezing payment of taxes and fees; subsidizing 10% of electricity prices for production and businesses.
Chairman of Board of Thuan Phuc Trade and Production Company Vuong Thi Thu Luyen requested more favorable tax policies for enterprises, especially small and medium ones, saying many are still struggling to cope with tax obligation at the moment.
Sharing Luyen’s view, Director of Kim Long Production and Services Company Ha Quyet Thang expected the government to support enterprises to better access banks’ loans by simplifying lending procedures and frequently updating information related to tax freezing and exemption for enterprises.
