The northern province of Bac Giang has devised a series of measures to support struggling enterprises, including easier access to loans, Deputy Director of the provincial Department of Planning and Investment Bui Thi Thu Thuy said.

At the request of the State Bank, local commercial banks cut the rates of loans for farming, rural development, export production, support industries, and small and medium-sized businesses.

In order to mobilise credit, borrowers will benefit from longer term or interest-free loans. Businesses that employ less than 10 people and have a feasible business plan and good credit track record are entitled to take out loans without mortgages.

In the meantime, the province will also increase the State management of monetary activities, crackdown on violations and trade fraud, and update commercial banks on policies and guidelines.

Commercial banks are requested to support businesses in applying for loans, while provincial agencies will improve the purchasing power for domestic products, expand markets, and accelerate administrative reform and transparency.

Last year, 120 local businesses temporarily suspended operations, a 41 percent rise compared to 2012, and accounting for 22.47 percent of newly registered ones. Another 44 completed the process of filing for bankruptcy, including 27 firms and 17 branches and representative offices. This marked an annual increase of 159 percent and accounted for 5 percent of new businesses.

Out of 3,827 active companies, 1,450 are running their operations in a stable manner, while the rest face difficulties.

This year, 495 firms suspended operations temporarily (12.9 percent of the total); 202 are waiting to be declared bankrupt (5.8 percent); 395 have no business addresses (10.3 percent); and 335 have yet to commence operations (8.7 percent).

In October 2014, the provincial Department of Planning and Investment granted licences to 54 firms with a registered capital of over 244 billion VND (11.6 million USD), mostly joint stock limited liability companies (LLCs) as well as one-member LLCs, branches and representative offices in the fields of trade, services and construction.

Since the beginning of this year, the province has recorded 339 new enterprises, registering more than 2.5 trillion VND (119 million USD), up by 144.7 percent year-on-year.-VNA