Businesses seek to easily access US$15 billion bailout package
Businesses that have borne the brunt of the COVID-19 pandemic for the past two years expect they will get easy access to the recently approved US$15 billion bailout package to stay afloat.
Vo Thuy Hang, director of Can Dieu Food Company in Hanoi, says her business is facing a serious shortage of capital through it is gathering full steam for export orders, Cong Thuong newspaper reports..
“Many partners have placed orders, but we cannot receive them because of capital and labour shortages,” she complains.
Sharing the same view, Nguyen Van Tai, CEO of VietSense Travel, notes the firm does not have sufficient capital for running programmes to anticipate a high influx of foreign visitors when Vietnam reopens all borders to international tourism on March 15.
“We find it difficult to reach out to tourists by online advertising through search engine platforms as well as social networks, because the implementation costs are very high and the effectiveness is uncertain, while our financial sources are limited,”
According to To Hoai Nam, general secretary of the Vietnam Association of Small and Medium Enterprises, many businesses, regardless of their sizes, are returning to the starting point, and they are in dire need of support policies of the Government
“The effectiveness of the economic recovery programme depends on the size and implementation of the support package before businesses go bankrupt,” Nam emphasizes.
The National Assembly recently approved the government’s US$15 billion bailout package which is considered a lifesaver for businesses to weather the COVID-19 crisis. Businesses all expected they would get benefits from this package son when it is implemented in reality.
However, Hang points out that the government had previous adopted several bailout packages during the height of the pandemic, but most of businesses, especially small and medium sized that desperately need capital, could not access the package due to tough conditions.
“With the new bailout package, State management agencies should provide specific information about conditions and simplify procedures to help businesses get easier access to capital sources,” she says.
To effectively implement the economic recovery support package, according to Dr. Can Van Luc, chief economist of the Bank for Investment and Development of Vietnam (BIDV), State management agencies should classify groups of businesses that are in need of capital for production recovery.
“The US$15 billion bailout package cannot be disbursed evenly for all…it should be considered appropriately,” he suggests.
2022 is considered an important year for businesses as they develop and realize recovery plans after two years of either moderate production or closures due to COVID-19. To Hoai Nam, general secretary of the Vietnam Association of Small and Medium Enterprises, suggests that the support package should be immediately be disbursed to help businesses stay afloat.
Vietnam will soon disburse at least 50 percent of the VND350 trillion economic recovery package, the largest in its history, aiming to reboot the country’s economy after a long period of social and mobility restrictions due to the COVID-19 pandemic.
The year 2022 will not only be the time to live with but overcome the Covid-19 pandemic with a proactive attitude.