return icon

HCM City unveils $517 million aid package for SMEs

Ho Chi Minh City is set to roll out a second COVID-19 aid package worth 12 trillion VND (517 million USD) exclusively for small and medium-sized enterprises (SMEs).

HCM City unveils 517 million USD aid package for SMEs hinh anh 1

Ho Chi Minh City is set to roll out a second COVID-19 aid package worth 12 trillion VND (517 million USD) exclusively for small and medium-sized enterprises (SMEs) (Photo: VNA)


Le Minh Tan, Director of the city Department of Labour, Invalids and Social Affairs, said that preferential loans would be offered to employers to maintain production, retain workers and ward off bankruptcy with priority given to micro and small-sized enterprises.

“Unlike the previous package under the Government’s Resolution 12, the second package will provide SMEs with easier access to preferential credit, and not require a 50 percent cut in payroll or fall in revenues [to qualify].

“Instead, businesses can borrow to maintain their production and [retain] employees if their revenues declined by just 20-30 percent from the fourth quarter of 2019.”

The package would involve the active participation of commercial credit institutions, he said.

The city’s credit institutions had loans outstanding of 2.38 quadrillion VND (102.5 billion USD) as of the end of August, an estimated 3.68 percent up for the year, the lowest rate in many years. But the State Bank of Vietnam (SBV) said cash is still being pumped into key areas of the economy.

Short-term loans provided to the city’s five priority sectors (agriculture and rural development, production of goods for exports, small- and medium-sized enterprises, supporting industries, and high-tech enterprises) were worth 176.26 trillion VND as of the end of August.

On the central bank’s instructions to offer relief to pandemic-hit companies, credit institutions gave 240,407 firms in the city loans worth 583.15 trillion VND.

As stipulated by the SBV, the banks reduced interest rates, rolled over debts and did not classify overdue debts owed by affected businesses as bad.

Nguyen Hoang Minh, Deputy Director of the SBV’s HCM City Branch, said 230,700 borrowers had so far benefited from these policies as of the end of June.

Interest rates had been cut on loans worth over 49.97 trillion VND given to nearly 17,420 borrowers, and new soft loans worth more than 270.42 trillion VND were offered to over 44,600 pandemic-hit customers.

In addition, around 168,670 borrowers have had their loan payment deadlines extended, he said.

The banking industry would continue to focus on efforts to resolve challenges faced by businesses based on guidelines issued by the Government, the central bank and the city People’s Committee, he added.

Speaking at a recent meeting, Chairman of the municipal People’s Committee Nguyen Thanh Phong said the city would announce specific policies to help enterprises and industries heavily affected such as travel, restaurants, hotels, and transport- and tourism-related services.

More than 21,000 city businesses have suspended operations and laid off a large number of employees, he said.

“The top priority is to help businesses maintain production and avoid bankruptcy, and prevent more workers from losing jobs.”

Small and medium-sized enterprises, which account for 98 percent of all enterprises, have been seriously impacted, he said.

Services, which account for more than 60 percent of the city’s economy, have been hit hardest, especially tourism and accommodation.

Jobs protected

Tan said his department would take whatever measures needed to safeguard people’s jobs and incomes.

More than 327,000 people were laid off in the first half, he said.

Tourism and other services were the hardest hit with some 4,400 enterprises being affected and 100,000-120,000 jobs being lost.

To protect workers, the department has set up working groups to support businesses and ensure employees are treated in accordance with legal provisions, he said.

In March city authorities approved a support package targeting poor families and 600,000 workers and teachers at private pre-schools who had lost their jobs.

Prime Minister Nguyen Xuan Phuc earlier approved a relief package worth over 62 trillion VND (2.7 billion USD) to benefit around 20 million people nation-wide, with a focus on workers who lost jobs or incomes and businesses affected by the pandemic.

According to city authorities, 90 percent of 8,400 enterprises facing difficulties are eligible for the 62 trillion VND package./.VNA

Businesses unable to access Govt support package, experts call for simpler application procedures

Businesses unable to access Govt support package, experts call for simpler application procedures

Procedures for accessing the Government’s credit package for enterprises and individuals affected by the COVID-19 pandemic must be made simpler and more rational, experts have said.


Applying special mechanism, HCMC attracts 10 experts, scientists and talents

HCM City has issued a Resolution on the income level of experts and scientists for the fields the city needs to attract talents in the 2018-2022 period.

People should be cautious of 'easy job, high salary' in Cambodia

Nguyen Minh K., 24, of Ninh Thuan Province, still can't believe he was illegally sold to a casino in Cambodia.

25 Apple ’s partners have factories set up factories in Vietnam

The number of Apple manufacturing partners setting up their factories in Vietnam has increased to 25 at present, four more than the 2020 figure, the tech giant said in its list of supply partners for the fiscal year 2021.


Hanoi inaugurates new road tunnel to address traffic congestion

Netlflix asked to remove "Little Women" for distorting history

The request was made by the Authority of Broadcasting and Electronic Information, under the Ministry of Information and Communications, according to Deputy Director General Le Quang Tu Do.

UOB upgrades 2022 growth forecast for Vietnam to 8.2%

Given Vietnam’s strong economic recovery in the third quarter, the Singapore-based United Overseas Bank (UOB) has raised its forecast for the country’s GDP growth this year to 8.2%, from the previous prediction of 7%.

Vietnam rice prices surge on Indian rice export restrictions

Prices of Vietnamese rice surged in the global and domestic markets after India announced restrictions on broken rice exports and a 20% duty on exports of various other types.

Deaths of Adenovirus total nine, infections increase with many severe cases

The child died at the National Children's Hospital on Monday and is not thought to have any health issues but had been treated for the past 50 days and recently needed a ventilator.


Vietnamese fleet to handle a fifth of exports by 2030: transport ministry

A day in the life of a fisherman in ​​Mong Cai

After Van Don - Mong Cai highway opened for traffic in early September, the border city of Mong Cai became a new tourist attraction.

Vietnamese navy ship arrives at Lumut port, beginning Malaysian visit

Sailing Ship 286-Le Quy Don of the Vietnam Naval Academy and a delegation of the Vietnam People’s Navy arrived at Lumut port in the Malaysian state of Perak on October 4, beginning a visit to Malaysia.

Hanoi, CNN boost tourism promotion cooperation

CNN wishes to resume tourism promotion cooperation with Hanoi, thus contributing to introducing the capital city’s cultural identity and valuable traditions to the world, Senior Vice President of CNN Robert Bradley said.

Vietnam's brand value reaches $431 billion

According to the latest report of the world's leading brand valuation consulting company - Brand Finance, Vietnam's national brand value has increased by 11 percent in 2022, from $388 billion to $431 billion.

Unblocking capital sources for the economy

After the recent increase in credit limit, the State Bank of Vietnam (SBV) has granted 13.6 percent of the total 14 percent credit room in 2022.

Share prices fall, billionaires lose big

Billionaire Tran Dinh Long’s assets have fallen by $1.6 billion this year, while billionaire Pham Nhat Vuong has lost $2 billion.