Listening, solving problems, supporting enterprises to develop

Yesterday morning, October 4, Nguyen Van Loi, Member of the Party Central Committee, Secretary of provincial Party Committee and Head of provincial National Assembly Deputy Delegation, along with Nguyen Van Loc, Member of provincial Party Standing Committee, Chairman of provincial People's Council and Mai Hung Dung, Permanent Vice Chairman of provincial People's Committee presided over a conference with industries’ associations and domestic investment enterprises for 2024.

Nguyen Van Loi, Member of the Party Central Committee, Secretary of provincial Party Committee and Head of provincial National Assembly Deputy Delegation speaking at a meeting with industries’associations and enterprises associations October 4

Obstacles needing to be addressed

At the conference, Lai Xuan Data, Deputy Director of provincial Department of Planning and Investment stated that as of now, workforce at province-based businesses has stabilized without the situation of labor shortage like in previous years. Many companies have orders until the end of the year and some sectors such as garment and textile have orders through the first quarter of 2025. The production and business activities of enterprises in the province in 2024 are estimated at increasing by 15%-20% compared to 2023. However, enterprises are also facing significant challenges in the international market.

A delegate expressing their opinions at the conference

According to Nguyen Liem, Chairman of Binh Duong Furniture Association (BIFA), current challenges include increasing market competition, stringent low-carbon emission requirements to meet the "Net Zero" goal in the supply chain, which has led to rising production costs and reduced profits. Additionally, these factors have increased production costs and reduced the profits of enterprises. In addition, customers' order time have become shorter, forcing enterprises to work overtime to meet deadlines, leading to higher production costs. The issue of inventory accumulation is also a major concern, causing many businesses to experience cash flow freezes and be unable to meet their loan repayment obligations.

One of enterprises’ biggest difficulties is to get access to loans as their revenue and profit in 2023 decreased compared to 2022. And credit limits have been reduced, due to the declining value of real estate collateral. BIFA has recommended the State Bank to direct commercial banks to restructure debts and extend repayment periods, giving businesses more time to manage and maintain operations.

Meanwhile, Pham Thi Xuan Trang, Chairwoman of Binh Duong Textile-Garment Association proposed policies to reduce interest rates on medium-term loans and support enterprises in accessing preferential loans. She noted that most banks currently require collateral and do not accept unsecured loans based on projects or export contracts. This has made it difficult for many enterprises to access capital needed to maintain production and expand operations.

Enterprises also noted that environmental and fire prevention regulations are very strict and costly, requiring significant investment to meet compliance. They requested that departments and agencies develop policies to extend deadlines or provide support for enterprises outside industrial parks...

Instructions for proper implementation

Lieutenant Colonel Nguyen Van Tung, Deputy Head of provincial Fire Prevention and Rescue Police Department stated that since 2020, the Government, the Ministry of Construction, the Ministry of Public Security and relevant agencies have issued legal documents ensuring the legality and practicality of fire prevention and fighting work, aiming at creating favorable conditions for organizations and individuals to handle administrative procedures related to design approval and acceptance of fire prevention and fighting. Components submitting dossiers for design approval and acceptance of fire prevention and fighting are also adjusted to facilitate administrative procedures...

Many industries are in need of capital and interest rate support to develop production. In picture: Production activities at Binh Duong Garment Joint Stock Company

Lieutenant Colonel Nguyen Van Tung added that provincial Fire Prevention and Rescue Police Department has been actively advising provincial Police Agency’s directorate on solving enterprises ’obstacles in fire prevention-fighting, providing guidance to facilities facing issues in complying with fire prevention-fighting regulations and discussing solutions for businesses to choose and implement to ensure safety on fire prevention-fighting as stipulated...However, some investors have not fully adhered to their responsibilities, resulting in construction that does not meet approved designs or legal dossier requirements.

In terms of getting access to capital, Vo Dinh Phong, Director of the State Bank of Vietnam - Binh Duong Branch noted that deposit and lending interest rates are trending downward, with average rates for new transactions at commercial banks down by 0.15%-0.25% per year compared to the end of 2023. The State Bank is balancing two objectives: supporting enterprises and the economy to overcome difficulties while ensuring the safety of the banking system and credit institutions. To increase access to bank loans, enterprises need to restructure their operations, strengthen financial capacity and build trust with credit institutions.

Reported by Tieu My-Translated by Kim Tin