City’s business assistance programs meet with lot of difficulties

HCMC has lot of business assistance programs but the implementation has met with many difficulties, said deputy director of the city Department of Industry and Trade Nguyen Phuong Dong yesterday.

HCMC has 10,602 selling spots under the price subsidization program (Photo: SGGP)

HCMC has 10,602 selling spots under the price subsidization program (Photo: SGGP)

He was reporting to the Economics-Budget Board of the HCMC People’s Council which was conducting a survey on business development assistance at the agency.
Since early 2017, the agency has connected 11,900 customers with banks with the total loan of VND218.88 trillion ($9.34 billion). Still there have been businesses unable to get bank loans for failing to meet mortgage requirements because of bad debt or unclear financial condition.
The agency has assigned Support Industry Development Center to work with terminal products manufacturers, most being foreign directed investment firms, to learn about support product supply demand. However, surveys about the inner force of 300 city businesses show that most have yet to meet standards to become part of global supply chains.
The department has carried out measures to renew the way of dialogue with businesses to increase the efficiency of business assistance in the upcoming time.
In addition, it will work with commercial banks to simplify administrative procedures for businesses to access loans, renovate technologies and improve production efficiency.
The agency has also worked with Samsung Group to improve production efficiency for support industry firms, striving to get the target of at least five companies will be able to attend global supply chains by the end of 2017.
Mr. Cao Thanh Binh, deputy head of the board, said that besides the above solutions, the agency should speed up regional connectivity, building clean agricultural products and food consumptionstrategy for city farmers, providing capital assistance in combination with directing technology innovation for businesses.
About market stablization program, the Department of Industry and Trade said that total goods volume under the program has increased 30-35 percent compared to 2016. The city has established 10,602 spots selling subsidized products.
The transfer of business households into businesses has been carried out in many districts still complicated procedures have raised many costs during and after the transfer such as taxes including excise, labor, invoice costs and social insurance.

By MINH XUAN – Translated by Hai Mien

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