Vietnam: Ho Chi Minh City seeks to combine companies and banks to revive the economy

HO CHI MINH VILLE, December 12 (Vietnam News / ANN): To speed up recovery from Covid-19, authorities in Ho Chi Minh City (HCM) are trying to match businesses and banks to meet financial needs of the firsts.

Hoc Mon District has organized several conferences to learn about the difficulties they face such as lack of capital and how to put them in touch with lenders.

Nguyen Thanh Hai, director of Saigon Ngọc Diem orchid garden in Hoc Mon, said, “Foxtail orchids only bloom once a year, mainly during Tet (Lunar New Year) and many traders arrive every year in October and November to buy some. But this year and last year, tens of thousands of orchids remained unsold. To maintain their orchid gardens, businesses need financial support. “

Nguyen Thi Phuoc, director of Lan Phương Trading Production Company Limited in Phú Nhuận District, said her business had to go out of business for many months due to social distancing, but still had to pay taxes, interest on bank loans and salaries, and so got bogged down in trouble.

The companies have said they want banks to restructure loans and make new loans at low interest rates so they can resume operations.

Business leaders and experts have said companies are in desperate need of funds to resume operations.

As the end of the year approaches, companies are redoubling their efforts to re-enter the market as demand for goods and services increases during the holiday season.

Food producers will soon need large sums of money to store raw materials and make production plans for Christmas and Tet in early February, said Lý Kim Chi, president of the HCM City Food and Foodstuff Association.

The deputy manager of the Hóc Môn branch of the Bank for Agriculture and Rural Development, Le Trung Hau, said the bank has an interest rate reduction program to help restore production and restructure old debts. and not designate them as bad debts.

Nguyen Van Than, Director of Commercial Joint-Stock Bank for Investment and Development at Bình Thạnh District Branch in Việt Nam, said the current demand for loans to revive and develop businesses is huge and banks cut interest rates and rolled over their debts.

Banks have said they plan to cut interest rates by one percent and remove fees, and this has been welcomed by the business community.

The HCM City branch of the State Bank of Vietnam estimates that 400,000 businesses will benefit. – Vietnam News / ANN

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