Loans made available for businesses in Phu Yen to get through tough times

Businesses in Phu Yen are provided zero-interest loans to pay salaries during COVID-19

Following Resolution No.68/NQ-CP on a number of policies to support employees and employers facing difficulties due to the pandemic, the Vietnam Bank for Social Policies (VBSP) branch in Phu Yen offered credit packages with preferential interest rates for enterprises to pay salaries for employees and overcome difficulties to maintain operations.

Ninh Thi An, director of Hung Thinh Construction Co., Ltd. has 20 full-time employees who have to work in rotation due to the pandemic. “The zero interest-rate loan to pay salaries to our employees will reduce some of our difficulties from the pandemic. The instructions were clear and the procedures quick, which allowed us to secure a loan in a short time."

Along with Hung Thinh, Phuong Tuan Constructing-Trading Co., Ltd. (Tuy Hoa City) took up a loan of nearly VND87.8 million($3,820) to pay salaries to 25 employees.

Previously, the VBSP branch in Phu Yen created a Zalo group to timely update businesses in the province on policies to provide loans to pay salary to employees who had to stop working, provide loans to pay salaries to resume production, and create QR codes for enterprises and employers to register their employees who need financial assistance. By the middle of August 2021, the branch directly contacted 1,257 enterprises, employers, and 30 were in need for a loan to pay about VND12.3 billion ($534,780) to 3,055 labourers.

“Since March 2020, the pandemic has had a substantial effect on enterprises in the province, raising bad debts. Many localities are under lockdown and social distancing under Directive 16/CT-TTg of the prime minister, which means a lot of enterprises have obtained capital loans to pay salaries and resume production,” said Ho Van Thuc, director of the VBSP's Phu Yen branch.

He added that the bank will continue to instruct enterprises on obtaining loans to pay salaries to staff who had to stop working as well as to resume production to complete documents to timely approve disbursement.