Support from the State is urgently needed to help firms maintain operation and surmount challenges as the COVID-19 pandemic has dealt a heavy blow to most manufacturing and services businesses, according to head of the Prime Minister’s economic advisory group Nguyen Duc Kien.

Workers at Daikin Vietnam in Thang Long II industrial zone in Hung Yen province
(Illustrative photo: nhandan.com.vn)

The expert, who is also vice head of the National Assembly’s Committee for Economic Affairs, said that private companies need incentives and financial assistance to speed up recovery and business operation in the long term.

At the regular press conference of the Government in July, Deputy Minister of Planning and Investment Tran Quoc Phuong said the pandemic adversely affected numerous economic sectors, particularly tourism and passenger transport.

Given that garment-textile exports are projected to continue facing difficulties due to order shortage, many experts noted that firms should bolster activities at the domestic market to cushion losses.

Following the re-emergence of locally-transmitted cases, however, the measure may not yield expected results.

Pham Thi Ngoc Thuy, Standing Deputy Chief Executive Officer of the Private Sector Development Office under the PM’s Advisory Council for Administrative Procedure Reform, said businesses are now vulnerable and facing financial pressure, as their operation has been frozen since the start of the COVID-19 outbreak.

As a result, the Government should review aid packages in the current context to promptly address difficulties for businesses. Subsequently, the assistance should be expanded in terms of beneficiaries and duration, according to economic experts.

In addition to interest cuts and charge-offs, the banking sector needs to join hands with consultant agencies to update firms’ records of loans. At this time, payment postponement for businesses is necessary to give them strengths in coping with the pandemic.