Hanoi Supports Enterprises Overcome Hardships

At present, many companies in the capital city are confronting growing risks resulted from declining purchasing power and growing input prices plus tightened monetary policy adopted by the Government. This situation was quite clearly demonstrated by data released by the Hanoi Statistics Office. The industrial production in January shrank 14 percent from the previous month and 1 percent from the same month in 2011. Up to 16 out of 21 main products made by Hanoi contracted from January 2011.

 

Another burning problem is more and more companies are falling short of capital. This is happening to companies in all industries. High lending rates are biting into corporate earnings and sending many companies to stagnation. To survive, many have to accept loans with much higher interest than bank-quoted ones.

 

Mr Nguyen Thanh Son, Director General of Hapro, said: “As a domestic trading company, we need big capital to store goods and regulate prices. Previously, Hanoi had applied some capital advance solutions to stabilise prices but the current context requires more.” Besides, many business representatives sought support for market expansion and sales boost. Many recommend launching programmes to encourage consumers to use locally made products.

 

Meanwhile, Hanoi Agriculture Investment and Development Company is facing difficulties in manufacturing space clearance. The company has lost a lot of opportunities with its floriculture project because of standstill site clearance and rising expenses from this deadlock. Hence, it proposed municipal authorities to take more drastic measures to solve this situation.

 

Before opinions from local businesses, Chairman of Hanoi People's Committee Nguyen The Thao urged relevant departments to take stronger actions to support businesses. As regards lending solution, the city will have positive support measures in the coming time like lending enterprises that have high competitiveness, manufacture favourite products in the country and produce products alternative to imports.

 

The mayor reminded enterprises to seek capital support at the science and technology fund managed by the Department of Science and Technology or other funds like Environment Treatment Fund, Trade Promotion Support Fund, etc. In addition, the State Bank of Vietnam - Hanoi Branch will carry out soft loan programme for agricultural companies, farmers and exporters.

 

He also urged to set up a hotline for businesses and authorities to timely exchange problems and seek out best solutions in the soonest manner while requesting relevant departments to guide enterprises to follow the city’s policies to enjoy most benefits. The capital city will expand cooperation with surrounding provinces to tap mutual advantages and potentials. The city will do its best to realise the growth target of 10 -10.5 percent this year.