Thai Nguyen supports groups in steering through turbulence

IT is one focus area of Thai Nguyen’s new socio-economic measures

A recent report on socio-economic development of Thai Nguyen People’s Committee showed that most production and business sectors, and import-export activities faced stagnation or even froze in the province in the first five months of this year in the wake of coronavirus impacts.

Pham Duy Hung, director of Thai Nguyen Department of Planning and Investment, said that to help firms cushion production costs and ensure social wellbeing, Thai Nguyen has deployed a suite of efficient measures socially and economically tailored to both pandemic and post-pandemic times. Along with this, new suitable policies were executed to attract investment and push up administrative reforms along with the application of IT in management activities.

The province also came up with a wide range of policies supporting businesses from assorted economic sectors that were affected by COVID-19 following the principle of being quick, and efficient, and for the right people. Efforts were also taken to ensure effective implementation of the policies on loans and payables’ loosened payment, fee reduction, and exemption, in parallel to the deployment of diverse concessionary credit programmes to benefit firms.

From late February, local banks have engaged in rescheduling debts for businesses with softened interest rates to timely support customers and businesses who were hurt by the pandemic. Reality shows that support schemes of credit institutions help partly relieve businesses’ burdens as challenges are intertwined in the current context. As of early April more than 40 individuals and corporate entities in the province had their debts extended to a total value surpassing VND200 billion ($87,000) whereas over VND400 billion ($174,000) enjoyed reduced interests.

Nguyen Khue Chinh, deputy director of the Bank for Investment and Development of Vietnam’s (BIDV) Thai Nguyen branch, said that besides lowering the interest rate, the branch has extended and loosened the payment deadline of loans to uphold enterprises.

Moreover, from early April under government instruction, the power sector curtailed 10 per cent of electricity bills in the second quarter to support production and business activities. This reduced sum is expected to fetch tens of millions of US dollars.

According to Le Manh Cuong, director of Viet Cuong Steel JSC based in the province, the lower power bill has been significantly helping businesses to get through the current turbulent times.

Targeting economic rebound and growth targets, in recent months, the government and Thai Nguyen province particularly have been expediting seamless measures to support the business community effectively.

Concrete support policies attest to the commitment of the state and the province to beef up business development. Nguyen Van Thang, deputy vice president of Thai Nguyen Business Association was quoted as saying, “Local firms can now set their mind at ease doing business in the province as the government and Thai Nguyen authorities have taken drastic measures with efficient policies to advocate business development.”

Production and business operation has gradually stabilised as Vietnamese took the lead in containing the coronavirus. Despite enduring adverse pandemic implications, Thai Nguyen has still posted many set growth targets with upbeat performance in diverse economic indexes, with its major industries bouncing back strongly.

The province’s latest statistics show that in the first half of this year, Thai Nguyen produced 737,000 tonnes of steel of various kinds, up 17.1 per cent on-year and equal ot 58.5 per cent of the full-year plan. Cement reached 1.2 million tonnes, up 10.5 per cent and equal 52.3 per cent of annual projection, while refined copper ores came to 21,300 tonnes, up 1.4 per cent on-year, among others.

Vu Hong Bac, Chairman of Thai Nguyen People’s Committee, reported that the province has made great strides to achieve a positive growth level in the first half of this year amid multiple challenges for socio-economic development in the domestic market.

Notably, Thai Nguyen continues to be an appealing destination to foreign investors during the period. In the year to date, the province has secured nine related projects, of which eight are in the processing and manufacturing industries and one in science and technology with total capital value surpassing $29.4 million. The projects are all energy-efficient and environmentally friendly.