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Thứ 3, Ngày 21/04/2020, 18:00
Binh Duong closely works with enterprises to overcome difficulties caused by Covid-19 pandemic
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21/04/2020

BEGIC - ​Facing the situation of production and business difficulties due to the Covid-19 pandemic, Binh Duong province has introduced many solutions to support and overcome difficulties.

​​The Covid-19 pandemic has a great impact on many industries

According to the evaluation of Binh Duong People's Committee, although the results of the province's socio-economic development goals in the first quarter of 2020 have still been good, however the Covid-19 pandemic has had a great impact on many sectors and fields. In general, the disease has disrupted the supply chain of many domestic and foreign products and goods; the domestic product consumption market plummeted; contracts for sale of goods with foreign countries were interrupted, thereby affecting the industrial production process of the province, especially the textile, footwear, electronics etc.

Estimated Industrial Production Index in the first quarter of 2020 increased by 6.14% over the same period in 2019, 1.02% lower than the 7.16% increase of the first quarter of 2019. Total retail sales of goods and services in the first quarter of 2020 increased by 11.65% over the same period but the growth rate was 3% lower than the increase of the first quarter of 2019. Export turnovers in the first quarter of 2020 is estimated at USD $5,839 million, up 3.6% over the same period, lower than 9.8% compared to the growth of the first quarter of 2019. Import turnover in the first quarter of 2020 is estimated at USD $ 4,200.1 million, up 4.3% over the same period, 1% lower than the growth rate of the first quarter of 2019.

Businesses that have signed contracts and prepared sources of raw materials to maintain production until May 4-5, 2020, so far been relatively stable. However, due to the lack of raw materials, the shortage of foreign experts, the recruitment of labor is also facing difficulties, some businesses have to operate under capacity and operate moderately. The report of the Department of Planning and Investment shows that domestic registered business capital, the province's foreign investment attraction decreased, by only 54% compared to the same period in 2019; The number of businesses having difficulties in dissolving has increased by 63%.

As a large company with 100% capital of Korea but from the beginning of the year until now, Kumho Tire Vietnam Co., Ltd. is suffering a strong impact due to Covid-19 pandemic. Currently the company has to maintain production in a state of reduced output because of the lack of raw materials imported from China, while ensuring the minimum wage for workers.

Mr. Cho Gyu Sik - Deputy General Director of Kumho Tire Vietnam Co., Ltd. wishes that the local government should take measures to support businesses to stabilize production, together to overcome the difficulties. "Large Korean businesses in Binh Duong and Kumho Company also have policies to support workers and efforts to overcome difficulties in the current disease situation. But for small and medium-sized enterprises, we hope that Binh Duong province has policies on tax reduction and social insurance to support workers during the pandemic" - Mr. Cho Gyu Sik said.


Many businesses face difficulties due to shortage of raw materials and labor

Binh Duong accompanies businesses

At the online conference assessing the socio-economic situation, security and order of the province during the Covid-19 pandemic, Mr. Tran Van Nam - Member of the Party Central Committee, Secretary of the Provincial Party Committee, Head of the Provincial National Assembly Delegation emphasized: "This is a very difficult time for businesses, a time when we must ever show our solidarity, accompany with businesses, actively share and support to solve difficulties and obstacles for businesses. We must create truly favorable conditions of access to capital, credit, finance, taxes, trade, electronic payments; review, cut administrative procedures and costs for businesses; assisting enterprises in enjoying policies on tax, insurance and other matters as directed by the Government and ministries and branches".

In that spirit, the Provincial People's Committee issued an Action Plan to remove difficulties for production and business, ensuring social security to respond to Covid-19 to promote production and business activities, to offset and minimize losses caused by Covid-19 pandemic.

The provincial People's Committee requested the Department of Finance to timely advice and implement measures and policies of the Central Government and the Ministry of Finance to promulgate in support of enterprises, especially policies on tax and​ fee exemption and reduction; at the same time, advising on the plan to reduce fees and charges within the provincial authority in order to remove difficulties for those affected by Covid-19 pandemic.

The State Bank of Binh Duong province has asked credit institutions to monitor the business and production situation of businesses, citizens and borrowers affected by the Covid-19 pandemic. Since then, timely apply measures to support and appropriately remove difficulties such as restructuring the repayment term, considering exemption and reduction of interest, keeping the debt group, reducing fees etc., in accordance with the direction of the Government, the State Bank of Viet Nam. Currently, commercial banks in the province are reviewing, planning to extend debt, reduce loan interest rates for cases affected by pandemic.

The Provincial Social Insurance shall cooperate with the relevant agencies to guide the implementation of the suspension of payment of social insurance premiums for enterprises affected by Covid-19 pandemic and excluding the interest on late payment of fines. The Tax Department and the Customs Department shall consider not organizing periodic inspections in 2020 for enterprises showing no signs of violation so that enterprises can concentrate on solving difficulties and maintain operations etc.

Department of Industry and Trade shall take the lead in coordinating to review the situation, the demand for input materials, propose solutions to diversify and ensure sufficient supply for production activities in the province. According to Mr. Nguyen Thanh Toan - Director of Department of Industry and Trade, the Department will continue to monitor and forecast the needs of domestic and international markets to take measures to ensure raw materials for business production and plans to organize production, distribution, circulation and supply of goods to meet consumer demand. In addition to strengthening the domestic market, supporting to remove difficulties for retail activities, the Department continues to improve the effectiveness of trade promotion, diversify import and export markets and find new markets; prepare necessary conditions, actively deploy plans and solutions to export goods to the EU market after the Vietnam-EU Free Trade Agreement (EVFTA) takes effect (from mid-2020).

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Binh Duong accompanies and supports businesses overcoming difficulties caused by the Covid-19 pandemic 

Department of Labor, War Invalids and Social Affairs shall give statistics on the situation of foreign workers returning to work; have appropriate plans to support labor training and support workers who are laid off, lose their jobs due to the effects of Covid-19 pandemic; report on the status and solutions for managing foreign workers working in Binh Duong, especially laborers coming from disease areas or moving through disease regions to have plans to support enterprises in finding alternative labor sources in case of labor and foreign experts shortage.

In parallel, the Department of Information and Communications shall instruct the media to timely provide official, public, transparent and objective information on the results of the Covid19prevention and control to stabilize psychology, consolidate trust, create social consensus, which contributing to fighting off pandemic and promoting the province's socio-economic development.​

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