VND16 trillion credit package inaccessible to businesses
The Vietnam Bank for Social Policies (VBSP) is ready to disburse VND16 trillion for enterprises that need money to pay to workers. But none of them have accessed the package.
Applying for money from the credit package after launch, Pham Van Viet, general director of Viet Thang Jeans, was disappointed as his application was refused.
According to Viet, when Covid-19 broke out, some of Viet Thang’s partners stopped products from Viet Thang, which disrupted the company’s cash flow. The company needs VND40 billion a month to pay to workers.
Many garment companies have had to stop making products for export, and in order to retain workers, they have shifted to making face masks and protective clothing, while organizing rotation production shifts.
“Do we have to lay off 20 percent of workers to satisfy the requirements to be eligible for the loans?” he said. “The requirements such as businesses have to pay 50 percent of salaries in advance to workers and must have no revenue during COVID-19 are worrisome. "
|If businesses run out of money, they won’t be able to pay 50 percent of salaries to workers as required. All businesses are trying to offset the revenue decreases, and none of them will ‘sit idle and wait for death to come’, so the requirement on having no revenue during Covid-19 is out of reach for businesses.|
Dang Thi Mui, personnel manager of Vina Korea in Khai Quang IZ in Vinh Phuc province, said she applied for the loan a long time ago, but still cannot get it. The problem is that the company still has not changed the land use right certificate from a red book to pink book.
“We did not see the requirement when reading about the loan. However, the management agency told us to do this for asset and financial capability verification,” she said.
Though the social distancing policy has been lifted, the company is still meeting financial difficulties. “We still have demand for the loan, but I don’t know if we can satisfy the requirements in the next application,” she said.
Other businesses said they want to access the zero percent interest rate loan, but they have found it difficult to prove their status. Meanwhile, nearly no business can satisfy the requirement of having no revenue during the epidemic.
Tran Duc Nghia, director of Delta International commented that only dead businesses can satisfy the requirements to be eligible for the loan.
If businesses run out of money, they won’t be able to pay 50 percent of salaries to workers as required. All businesses are trying to offset the revenue decreases, and none of them will ‘sit idle and wait for death to come’, so the requirement on having no revenue during Covid-19 is out of reach for businesses.
Nguyen Hong Dan, deputy director of the Hanoi Labor Department, said there have been only two applications for the loans because the requirements are too strict for borrowers.
The National Assembly (NA) approved the revised Enterprise Law at its ongoing ninth sitting this morning, June 17, which excludes household businesses.
Vietnamese enterprises looking for new technologies or to promote their products internationally markets are encouraged to participate in the VCIC CONNECT Programme.