Business strain with double difficulties
According to statistics, as of early May 2020, there are more than 370 enterprises in the province with over 129,600 employees affected by the Covid-19 epidemic. Besides, the province's foreign investment attraction also decreased, by only 54% compared to the same period in 2019. The number of enterprises facing difficulties in dissolving increased 63%.
Mr. Dien Quang Hiep - Chairman of Binh Duong Wood Processing Association said that due to the impact of the disease, wood enterprises faced difficulties when at the same time, many big markets announced to suspend and postpone orders. Specifically, currently 59% of businesses in the Association have reduced about 20% of orders from the US market. Meanwhile, 81% of businesses have reduced at least 20% of orders from the EU market ...
According to Mr. Hiep's analysis, this is a double problem, because the disease makes transportation of raw materials and auxiliary materials difficult, while the big customers who are supermarket chains and big stores have to close, so they request to cancel or extend the delivery date, and do not place new orders.
Faced with falling orders, while rising inventories lead to burden of interest expenses, management costs ... When not able to ship goods, the wood industry cannot afford to pay loans, pay interest, pay wages, taxes, insurance ... forced to reduce working hours, payroll or close. However, according to Mr. Hiep, at present, many businesses in the Association still try to hold out to overcome this difficult period.
According to experts, over time, textile enterprises have been very difficult in terms of raw materials because 60-70% depend on China. At present, when China recovers its production activities, enterprises that have raw materials come back can not deliver goods. Some EU orders to extend the delivery time will not affect much, but with canceled orders, businesses will be very difficult, especially with the payment of wages to workers. With such situation, businesses desperately need the support of the State.
Besides enterprises facing difficulties in timber industry, enterprises in other fields are also affected by covid-19 disease. For example, Primacy Co., Ltd. (Ben Cat, Binh Duong) due to the impact of the pandemic, the orders were canceled causing the company to terminate the labor contract with nearly 1,000 people. "Although we want to keep people to maintain production after the disease has passed, there is no other way," said Lin Kuan Cheng - Deputy General Director of Primacy Co., Ltd.
Meanwhile, a number of businesses have come up with a plan to keep people waiting to recover after the epidemic to avoid labor shortages. Accordingly, Chinli Plastic Company has decided to give hundreds of workers a break from work with a commitment, if the company has a new order, the company can arrange its production position, the workers can return to work. and many welfare regimes remain the same as before.
Timely business support
Under the direction of the Provincial People's Committee, in order to help businesses overcome current difficulties, branches and levels must urgently grasp information and promptly take measures to restore production and business, especially timely support. small and medium enterprises.
Mr. Vo Son Dien - Chairman of Young Entrepreneurs Association of Binh Duong province said that this time, encouraging small and medium enterprises to give priority to support each other's products. The Association will also take any action to increase business support to increase revenue or maintain operations and timely support businesses to access support credit.
In addition to providing maximum support for businesses under their authority, the Provincial People's Committee requires branches to monitor market forecasts to ensure that businesses organize production, business and distribution of goods to meet the needs of export, import and domestic markets.
Talking with the provincial web portal about solutions to support businesses, Chairman of the provincial People's Committee Tran Thanh Liem said that the tax and customs sectors and practical support industries have strengthened the solutions to create favorable conditions. Favorable for businesses to operate. In addition, the province also implements the directions of the Prime Minister to specify tasks in the province. Specifically, on April 29, 2020, the Provincial People's Committee issued Official Letter No. 2086/UBND-KT directing branches and levels to implement Resolution No. 4/ NQ-CP of April 9, 2020 of the Government on measures to support people facing difficulties due to the Covid-19 pandemic. Accordingly, there are 08 groups of subjects supported by the province in the direction of the Prime Minister. The Provincial People's Committee requires departments, agencies, mass organizations, and People's Committees of districts, towns and cities to base on the functions and tasks of the branch and assigned tasks to organize the implementation in a timely, tight and secure manner. to ensure the proper principles, the right regulations and the right subjects, not to take advantage of policies and profiteering policies.
According to information from the Binh Duong Tax Department, the tax industry has also implemented solutions to support businesses affected by the Covid-19 epidemic, including extension of tax payment and land rent for businesses as prescribed in Decree No. 41/2020 / ND-CP of April 8, 2020 of the Government.
In addition, in order to share the difficulties with investors in My Phuoc, My Phuoc 2, My Phuoc 3, Thoi Hoa, Bau Bang and Bau Bang Industrial Zones due to the impact of Covid-19, Becamex IDC Corporation decided to exempt 100% of management fees and maintain infrastructure for investors who rent land here. Exemption period, 03 months (April, May and June 2020).
"Becamex IDC Corporation hopes with this humble support and the determination and efforts of investors and employees, uniting together to overcome Covid-19 epidemic smoothly and quickly. "- Mr. Cao Van Chong - Communications Director of Becamex IDC Corporation said.