Vietnam Textile and Apparel Association (VITAS) has suggested measures that could help the country’s garment enterprises in the time of pandemic outbreak.
“It is necessary to cut costs to create favourable environment for production and business of enterprises,” said VITAS.
VITAS’ suggestions have come at time when the businesses in the country are currently facing many difficulties due to pandemic. In addition to the slow growth of vaccination drive for workers, financial problems along with interest costs are also adding up as huge burden for the factories.
One of such suggestions reads, according to a draft sent by VITAS to the Government, electricity prices are hampering the already troubled factories. Regarding this issue, VITAS proposes to reduce electricity price by 30 per cent until the end of 2021.
Further, VITAS went on to suggest that the banks should not lower the credit limit for businesses that are facing difficulties due to COVID-19, and should continue to reduce lending interest rates from 0.5 to 1 per cent per year and extend the repayment period of principal and interest in 2021 and 2022.
According to the official data, in the first six months of the year, many Vietnamese banks have had high profits compared to the same period in 2020, while businesses were facing difficulties, mentioned Truong Van Cam, Vice Chairman, VITAS.
With other expenses, VITAS has proposed to stop the revenues that do not have to be spent immediately, but to make a balance.
For the Vietnam General Confederation of Labor, the association proposes to stop collecting trade union fees until 30 June 2022; exemption from payment until 31 December 2021 for enterprises located in the localities implementing Directive 16; allow enterprises to coordinate with grassroots to use the trade union funds, currently remaining at the enterprise, to pay for quick test costs, testing costs for employees, support workers in difficulty.
It’s pertinent to mention here that, in the positive scenario, if COVID-19 is controlled by the end of August 2021, the industry’s export turnover in 2021 will only reach US $ 33 billion, completing 84 per cent of the whole year plan.
