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Ho Chi Minh City
Thursday, August 5, 2021

HCMC prioritizes preventing businesses from going bankrupt

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HCMC – HCMC is set to focus on preventing businesses from going bankrupt by putting in place specific measures from now until the end of this year, said the municipal government at a meeting on the city’s January-May socioeconomic situation held on June 4.

Data of the HCMC Department of Planning and Investment revealed that between January and May, 2,015 businesses were shutting down and over 7,250 others were temporarily suspending operations in the city, up 16.4% and 29.9%, respectively, compared with the same period last year.

At the same time, there were over 14,250 newly established enterprises with total registered capital of VND185 trillion, down 85.5% and 70.3%, respectively, compared with the same period last year.

Addressing the meeting, HCMC chairman Nguyen Thanh Phong asked municipal departments and agencies to take specific measures to support businesses affected by the Covid-19 pandemic, especially those facing a high risk of bankruptcy.

“Preventing bankruptcy means preventing unemployment. Most businesses in HCMC are micro and small, which are the most vulnerable to the Covid-19 pandemic,” he noted.

Commercial banks have reduced interest rates for some 17,500 clients and restructured debts for many businesses.

The city’s chairman noted that tourism was the hardest hit sector and had seen a steep decline in the number of tourists and revenues.

To help the tourism market recover, the city’s government has tasked the Department of Tourism with launching new products and collaborating with other cities and provinces to boost the demand for local travel.

Phong asked the pillars of the economy including banking, insurance, taxes and customs to put in place specific measures to help businesses recover.

The city will also promote innovation, implement social security policies, reduce the unemployment rate and accelerate the disbursement of public investment. According to the World Bank, a 10% increase in public investment disbursement will lead to a 0.6% increase in gross domestic product.

By Le Anh

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