An empty shopping centre in Hanoi during the coronavirus epidemic. (Photo: VNA) Hanoi (VNS/VNA) -The State Bank of Vietnam has asked credit institutions to prepare capitalsources to meet borrowing demand and provide support to customers who havebeen affected by the coronavirus epidemic.
With the epidemic significantly affecting business, production and dailylife, the central bank’s Governor Le Minh Hung has told banksto actively keep a watch on production and business situations ofcustomers who could be affected by the epidemic and evaluate the possibleimpact. Focus must be placed on the most vulnerable sectors such as tourism,agriculture and exports so measures can be put in place, he said in arecent document sent to commercial banks.
Support could include rescheduling debt payments and reducing lendinginterest rates.
The central bank also asked credit institutions nationwide to enhancecooperation with local management agencies to remove difficulties foraffected businesses and borrowers.
According to a report published on Monday by SSI Securities Corporation, anumber of industries would suffer negative impacts from the coronavirusepidemic in the short term.
As export-import played an important role in the Vietnamese economy, anyinterruptions from important suppliers like China could be challenges to thecountry’s economic growth.
“Export of agricultural products and tourism will be negatively affected, atleast in the short-term,” the report wrote.
Among 23 industries SSI surveyed, 10 were predicted to suffer, includingbanking, garment and textile, retail, seafood, beer, petrol and oil, security,transportation, airport and aviation services.
Only four industries might benefit, namely pharmaceutical production,information and technology, electricity and water.
For example, the epidemic did not have direct impact on the demand for garmentproducts but China’s GDP slowdown might hit consumption demand in the longterm, which would affect garment and textile production of Vietnamese firms.Currently, China was the largest supplier of fibre for Vietnam.
Regarding the retail industry, the report pointed out that shoppers would tendto turn to online shopping, instead of going to traditional markets and stores.
Deputy Minister of Industry and Trade Tran Quoc Khanh recently said thate-commerce with new delivery methods should be promoted as a measure to fightthe epidemic.
A recent report by VnDirect Securities Company also said that the demandfor online shopping and delivery services would increase significantly.
The Bao Viet Securities Company predicted that Vietnam’s GDP in the firstquarter of this year would grow at 6.5 per cent, 0.29 percentage points lowerthan the same period of 2019. Recovery could follow but might depend on thedevelopment of the epidemic.
The company forecast that Vietnamese economy might suffer until the end of thesecond quarter./.
VNA
