Businesses are in dire need of funds post-pandemic to buy raw materials. (Photo: nld.com.vn) HoChi Minh City (VNS/VNA) — A Ho Chi Minh City programme to linkbanks and businesses has seen around 93 trillion VND (3.97 billion USD)disbursed so far this year to help revive the economy which was battered fortwo years by the COVID-19 pandemic.
Tran Du Lich, a member of the prime minister's economic advisorygroup, said the programme was one of the best ways to help businesses accessresources to fund their recovery.
Analysts say credit growth has risen sharply, indicating theefforts made by credit institutions to supply the economy with capital, andsome banks have reported using up their full-year quota in just four to fivemonths.
Amid the rapid economic recovery, many businesses say they needmore funds to supplement their working capital and expand. For small andmedium-sized enterprises, banks remain the main source of capital, and it doesnot help their cause when lenders run out of credit room.
With more than 95% of the country’s enterprises being small ormedium sized, this is a widespread difficulty.
Lichsaid to meet businesses’ capital needs the Government needed to help diversifysources.
It introduced a 350 trillion VND recovery programme and 2 percentinterest rate subsidy worth 40 trillion VND, he said, adding it shouldaccelerate these programmes and even consider further support to businesses.
In May, the Government announced it will subsidise interest oncredit for companies, co-operatives and business households.
Besides, it has reduced corporate income tax, VAT and personalincome tax and waived fines for late payment of taxes by businesses facingdifficulties.
The support package is worth a total of 21.3 trillion VND.
These measures could not help businesses recover immediately,but would provide great support, experts said./.
