The Covid-19 pandemic had a great impact on many businesses in the province. However, with the support of the Central and local governments, enterprises are still gradually enhancing and maintaining their production and business, making great contributions to local socio-economic development. Production development in parallel with disease prevention and control are the two key tasks that all businesses are performing.
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Production of plastic pipes at Hoa Sen Group Joint Stock Company.
To actively overcome difficulties
To overcome the crisis and handle with impacts of the pandemic, many businesses have proved their "resistance" by calculating adaptive solutions and alternative business options, such as solving inventories, changing suppliers, changing equipment, raw materials... Representatives of Sanaky Vietnam Company said that enterprises' operations slowed down due to the lack of raw material supply. However, the company have tried to find alternative sources of supply. From the end of February, the situation has gradually improved, production and business activities of this company have been better.
Compared to other industries in Binh Duong, wood processing for export is relatively stable with export turnover of the first quarter of 2020 estimated at $689 million, up 3.5% over the same period last year, accounting for 11.5% of total exports. Dien Quang Hiep, Chairman of Binh Duong Binh Duong Furniture Association, said that the province currently has 1,600 enterprises operating in the wood industry (accounting for 40% total number of wood enterprises across the country), in the first quarter of 2020, the production value of these enterprises gained good growth. Although the wood processing industry has been also strongly affected by the Covid-19, businesses always uphold good solidarity and actively overcome difficulties.
In addition to quickly adapting to the market, some businesses are also actively seeking alternative sources of raw materials, avoiding dependence on one solely supply market. According to the leader of Hoa Sen Group Joint Stock Company, the situation of Covid-19 has affected import activities of this company. Enterprises are not able to import goods from China. Besides, due to the chain reaction, some import markets of this company, such as Taiwan and India, do not have goods to export to the company, because these countries also import steel materials from China to produce hot rolled steel sold to Hoa Sen. The company has been actively seeking alternative sources of raw materials, and it now purchases Formosa's products to maintain its manufacture. Hoa Sen Group is looking for all options and solutions to ensure personnel rotation, balance export output despite the Covid-19 pandemic. In April and May, the company's export orders remain stable.
To improve business environment
Entering the second quarter of 2020, which is also the peak period of the "fight" against Covid-19, businesses in the province have made efforts to maintain production and business, and set the principle of prevention and control of epidemic to the top. In order to provide practical support for enterprises, provincial Department of Industry and Trade collaborated with relevant departments and branches to survey and forecast the demands of domestic and international markets, specifically the export situation of enterprises. In addition, stimulating domestic market consumption by planning for trade promotion programs, assisting businesses in contacting, putting goods into supermarket systems, distributing to places.
To ensure the adequate production and supply of medical masks, personal protective equipment, and medical equipment to cope with the Covid-19 pandemic in the new period, contributing to ensuring social security and stabilizing socio-economic situation in the province, at the same time helping enterprises "redirect" production and export processing to overcome the difficulty caused by stopped orders amid the pandemic, Provincial People's Committee issued a plan to grant preferential loans for production of medical masks and equipment to cope with the Covid-19. Accordingly, the province granted preferential loans with 0% interest rate to 6 enterprises, 0% trust fee with the amount of VND38 billion.
Nguyen Thanh Binh, Director of Customs Branch of Song Than Industrial Park, said this unit set up a separate professional group to advise and support businesses on procedures and policies related to processing for export of cloth masks and personal protective gear. Customs Branch of Song Than Industrial Park has 6 enterprises that are "changing" their business model into processing and exporting these 2 items in order to overcome the situation that orders have been stopped due to epidemic. With the support of the customs unit, Eins Vina Company also signed contract with a foreign partner to export cloth masks and medical personal protective equipment.
Along with developing the economic development scenario including many impacts of the Covid-19, Department of Planning and Investment has policies to support businesses; collaborate with departments and branches to implement solutions to ensure favorable conditions for enterprises to continue stabilizing production and business. Department of Planning and Investment leaders said the province is implementing many policies of the central and local to support businesses. The support policy covers all economic areas and economic sectors. Department of Planning and Investment is also cooperating with relevant agencies to implement solutions to improve the business environment, attract domestic and foreign investment to make good use of development opportunities, especially to seize the opportunity of changing the investment capital flow from other countries.
The policies to support enterprises and guidance documents of the province have been disseminated quickly to enterprises, supported by businesses, and received their efforts, together with the government, to overcome difficulties, to recover, sustain and boost production and business during and after the Covid-19 pandemic.
Reported by Ngoc Thanh - Translated by Ngoc Huynh
