Solving difficulties
Early 2013, the world economy’s difficulties impacted badly on many businesses’ production and business. Meanwhile, prices of export orders and consumption market decreased but lending rates and input materials increased highly. This made many companies dissolve or bankrupt.
Facing this status, National Assembly, Government, ministries and agencies set out many supportive policies for businesses to recover economy.
In Binh Duong, obeying seriously and rapidly the Central’s decisions, the provincial party committee, People’s Committee, departments, agencies have synchronously launched groups of measures to curb economic recession and maintain economic growth as well as ensure social welfare and solve bad debt.
The provincial sector of trade and industry alone, right from early 2013 the sector held trade-investment promotion programs, assisted businesses to spread their trademarks, expand markets. These deeds contributed to solve inventory. In addition, grasping businesses’ production and business and supporting them to improve export capacity were focused.
The provincial department of Trade and Industry director Vo Van Cu said that as of the end of the third quarter, the department collected information and made surveys on production and business of 60 businesses involving in fields of footwear, apparel, wood processing, mechanics, porcelain and so on in a bid to grasp and solve their obstacles.
Expanding markets
Binh Duong provincial electric mechanics society chairman Tran Thanh Trong highly valued the local trade and industry sector’s attention to businesses through dialogues or meetings with companies. According to Trong, local businesses have exported their goods to many markets throughout the world. And, dialogues and meetings between the local leaders and businesses will help local enterprises choose proper business orientations, partners, products as well as approach foreign partners in an attempt to seek out new business opportunities.
According to the provincial electric mechanics society, in the first 9 months of this year the local electric mechanics sector won a 15% growth compared to the same period last year.
This result is thanks to increase in purchasing power, stability in materials, interest rate and so on.
Decreasing pressure of interest rates
Amid the difficult periods, the State Bank of Vietnam constantly cut basic interest rates. In this province, the State Bank of Vietnam’s Binh Duong branch asked local credit organizations to cut lending rates, facilitating businesses’ capital approach.
At present, lending rates for small and medium enterprises is at 7-9% per year for short-time loans and 11.5-13% per year for medium and long term loans.
Binh Duong provincial society for wood processing chairman Huynh Quang Thanh shared banks join hands to help businesses overcome difficulties by good deeds such as reducing lending rates. This helps many businesses maintain production and improve obstacles.
Statistically, lending rate reduction has increased credit loans. The total mobilized capital in the locality has won VND79,980bil, a 9.1% increase from 2012 and total outstaying loan at VND61,470bil, a 14.2% increase from the past year.
Reported by T.Huynh – Translated by A.C
