The Ho Chi Minh City Association of Mechanical and Electrical Enterprises (HAMEE) has just sent a petition to the Ho Chi Minh City People's Committee regarding the resolution of difficulties that the industry is facing, especially the issue of interest rate support under the investment stimulus program.
Enterprises need large capital to develop the mechanical and electrical industry - Photo: PT
In a letter on "Requesting to remove difficulties and disburse interest support money according to the approved investment stimulus program" sent to the Ho Chi Minh City government on November 18, the Ho Chi Minh City Association of Mechanical and Electrical Enterprises (HAMEE) said that since 2020, businesses in the industry have actively participated in the City's Investment Stimulus Program, with the expectation of receiving interest rate support to develop production towards quality, technological innovation, and join the global supply chain.
Approved but still waiting for support
However, after more than three years, businesses have yet to receive the promised interest rate support. Meanwhile, they have to borrow capital from banks at increasingly high interest rates, putting great pressure on their finances and production activities.
"After being approved to participate in the program, businesses have boldly invested, sold assets, mortgaged assets to borrow from banks, built infrastructure and purchased modern equipment to improve competitiveness.
However, due to delays in disbursement, they are now facing huge financial pressure. Some businesses have been exhausted and unable to maintain production activities, and thousands of workers are at risk of losing their jobs.
This delay in disbursement has caused us to lose many business opportunities, making it extremely difficult to compete with foreign enterprises. If we do not receive support soon, there is a risk that bank loans will become bad debts, the business will be acquired or go bankrupt," the letter stated.
HAMEE proposed solutions to resolve the issue, including the urgent disbursement of approved interest rate support funds to businesses. At the same time, the unit also requested the leaders of Ho Chi Minh City to quickly pass a special Resolution to completely resolve the above problems.
If this issue is beyond the city's authority, HAMEE calls on Ho Chi Minh City leaders to submit it to the Prime Minister for a thorough solution.
Had to sell off assets to pay off debt
Speaking with Tuoi Tre Online on the evening of November 26, Mr. Do Phuoc Tong, Chairman of HAMEE, confirmed that the difficulties mentioned in the letter are real.
Specifically, according to the program, the State will support loan interest rates for businesses, usually within 7 years, and during this period businesses only have to pay low interest rates. However, from 2020 onwards, businesses will no longer enjoy this incentive, and will have to pay interest on the amount they borrow.
"When participating in the program, many businesses believed in the city's policies and boldly borrowed tens of billions of dong, even hundreds of billions of dong to expand production. But for many years, they did not receive support, leading to difficulties and having to sell off assets to pay debts and interest to the bank," said Mr. Tong.
According to HAMEE representative, this support is stuck due to regulations on public investment, but basically there are still solutions to help businesses.
According to this unit, since February 2023, businesses have repeatedly sent documents to the Ho Chi Minh City government with the hope of receiving support to resolve the issue, but have not received any support so far.
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Source: https://tuoitre.vn/chua-duoc-ho-tro-lai-suat-hoi-doanh-nghiep-gui-tam-thu-den-chinh-quyen-tp-hcm-20241126202441597.htm
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