Many economic sectors in the southern province of Dong Nai, including major industries, are expected to face a range of difficulties due to the impact of COVID-19, especially in ensuring supplies of production materials.
The municipal Department of Industry and Trade has proposed the Ministry of Industry and Trade provide information about sources of foreign materials, mainly for garment-textile, weaving, electronics and mechanics, as imports of materials from China and the Republic of Korea (RoK) are forecast to be affected by the virus.
Local leaders have also recommended tax and customs agencies to postpone periodic inspections on businesses with no signals of violations in 2020 to enable them to better deal with operational challenges, and halt social insurance collections from coronavirus-hit firms until the end of June or December.
Cao Tien Dung, Chairman of the provincial People’s Committee, urged departments, agencies and localities to cut unnecessary administrative procedures and help enterprises remove difficulties.
The State Bank of Vietnam’s provincial branch said it had ordered credit institutions to roll out support measures for businesses in the locality.
According to the provincial Department of Industry and Trade, the import turnover of enterprises in Dong Nai stood at 2.1 billion USD in the first two months of this year, down 9 percent year-on-year.
Major industries, comprising garment-textile; leather and footwear; mechanics-manufacturing; chemicals-rubber-plastics; and electricity-electronics, mainly rely on materials from China and the RoK.
Apart from difficulties in material supplies, businesses have experienced declines in output and revenue, and increases in labour costs.VNA