It’s hard to import material and consume products

Amid the recent common situation, the businesses and manufacturers in Bac Giang city suspended their operation due to Covid-19 pandemic. Dozens of units sharply reduced the capacity and arranged the labourers to work alternatively or take temporary absence.

The production line of Vietnam Dae Shin Electronics Company Limited in Song Khe commune.

According to the survey of the municipal competent agency, from January to late April, nearly 1,500 labourers in the businesses and manufacturing facilities at the local industrial clusters got impact in term of job and income.

Particularly, Ba Sao Company Limited (Tan My Industrial Cluster) is specialized at manufacturing the shuttlecock and annually supplies some 10 million shuttlecocks to the markets nationwide. 

However, for recent months, the Company has suspended the operation due to difficulties in materials and product consumption. To maintain the job to the workers, the Company still keeps operation and reduces 40 – 50 percent of the working hours.

The food and farm produce processing cooperatives and facilities also encountered a lot of challenges to sell products. Annually, Tin Nhiem Clean Pork Cooperative in Dong Son commune and Da Mai Clean Vegetable Cooperative supply huge quantity of pork, veggies and roots to the municipal markets, in which many canteens and restaurants in the schools and firms inked contract to buy the port, pork processing products and vegetables.

Because there units have recently stopped buying products, Da Mai Clean Vegetable Cooperative focuses on selling products at the wholesale and retail markets and supermarkets.

However, it cannot compensate the loss of each member about 5 – 7 million VND (214 – 300 USD) per month due to the capital to buy the breeds and pay for manpower.

Timely support is needed

Amid the above situation, many businesses hope to be allowed to delay the payment time for the taxation and social insurance without any accumulation interest of late payment...

The operation at Ba Sao Company Limited in Tan My industrial cluster.

According to Nguyen Tien Tu, Vice Head of the municipal Economic Department, the Division consulted the municipal People’s Committee to issue the document to guide the relevant units to facilitate the business to borrow capital for operation, reduce and exempt the tax payment and power cost for the producers and business households in the city.

Also, the Division consulted the municipal authority to issue the plan to support the industrial encouragement activities in 2020. Accordingly, 5 businesses and cooperatives received the supported capital to renovate the technology and build product trademark.

However, the supported methods have yet to be implemented so that the facilities must find their own recovery way. Because it is hard to access to bank loan, Ba Sao Company Limited negotiated with their partners to supply material with delayed payment for production, encouraged the workers to continue working at the facility with 5-10 percent discounted income.

According to Nguyen Thi Than, Director of Da Mai Clean Vegetable Cooperative, the Cooperative and its members borrowed the capital from the local residents to keep production to make new orders for the canteens and businesses. The Cooperative has focused on enhancing the product quality to seek new consumption market.

Now, there are a lot of difficulties to the businesses and manufacturing facilities. The municipal authority is requested to urge the competent agencies to further grasp the situation of local production and business then consult and implement effectively the policies and measures to support them in line with the instruction from the Center, province and city so as to help these facilities quickly recover and gain normal growth.

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Lai Thuy