Illustrative image (Photo: VietnamPlus) HCM City (VNA) – Cutting interest rates andcorporate income and added value duties, and extending loan payments and taxand social insurance collections were among the proposals raised by businessesat a seminar in Ho Chi Minh City on March 17.
During the seminar, held by the HCM City Institute forDevelopment Studies, representatives of enterprises also called for supportfrom authorities in trade promotions to diversify their markets and seek alternativematerial sources.
According to Tran Thien Long, Vice Chairman of the HCMCity Association for Industrial Park Businesses, his association hadcoordinated with the HCM City Export Processing Zone and Industrial ParkAuthority to conduct a survey on the impacts of COVID-19 among 200 firms.
The survey unveils that businesses that rely onmaterials from China, especially those in mechanics, machinery, processing andgarment-textile, have been seriously impacted and faced material shortages.They have yet to find alternative suppliers.
Other problems include the absence of new orders, hugestockpiles, late payments and high production costs.
The enterprises said that in the first quarter ofthis year, their turnover is expected to drop 25-50 percent. The number oflabourers has also contracted significantly.
Nguyen Van Khanh, Vice Chairman and General Secretaryof the HCM City Leather and Footwear Association, said many enterprises mayhave to suspend operations in early April due to material shortages.
Vietnam’s leather and footwear exports to the EU – itsmain market – have been disrupted as the bloc is now the epicentre of COVID-19.
Fifty travel companies in the city also reported thatbetween January and February, the number of domestic and foreign touristarrivals stood at only 335,762, down 62 percent year-on-year.
The municipal People’s Committee has proposed thePrime Minister remove difficulties for firms operating in sectors such astourism, agriculture-rural areas, exports and support industry, as well assmall-and medium-sized enterprises, high-tech firms and Saigon co.op.
HCM City has also asked for permission to access the250 trillion VND (10.7 billion USD) credit package designed to supportthose affected by the COVID-19 outbreak./.
VNA
