Debt extension and interest rate reduction to support people and businesses to stabilize production

Businesses and people expect support

Ms. Vy Thanh Quy - owner of Tuan Thu wood workshop (Le Vien commune, Son Dong, Bac Giang province) was stunned to see her life's work destroyed. The pain of losing her property made her forget the physical pain when she had previously lost a finger due to a wall crushing her when storm No. 3 made landfall.

In 2012, she and her son pooled all their savings and sold their house in town to move to Son Dong (Bac Giang) to open a workshop. She borrowed a total of 10 billion VND from relatives and the bank to invest in the wood workshop and acacia forest. However, storm No. 3 blew off the roof of the entire wood workshop, causing serious damage to production machinery and goods.

Fish cages and aquaculture cages were all damaged and swept away by the storm. Photo: Vu Long

“Not only the factory but also my acacia forest was devastated. The acacia trees have only been planted for 2 years and are not ready for harvest yet, so I have determined that I can only sell them for 1/5 of the market price. Up to now, not counting the money borrowed from relatives, only counting the capital borrowed from banks, I still owe more than 500 million VND. With the current situation, my family does not know where to borrow money to reinvest and restore production,” said Ms. Quy.

Ms. Quy hopes to receive support for low-interest loans, or direct support so that she can reinvest, restore production and business activities, and ensure a livelihood for herself and her family.

In Hai Phong, many businesses were severely affected such as PHA Vietnam, LS Metal, Pegatron Vietnam, IDP Dinh Vu, Suhil Vietnam.

The factories of Environ Star and Jinka Construction Materials Company (Do Son Industrial Park) were flooded, causing damage to machinery and equipment; Wayne Company (6,000m2 factory roof blown off, aluminum and steel frames collapsed, machinery and equipment and finished goods damaged); Daito Rubber Company (factory flooded, roof blown off, machinery and equipment damaged); Vina Bingo Company (3 factories all had roofs blown off, goods damaged)...

In Quang Ninh , storm No. 3 also damaged the factory roofs of many businesses, especially coal, aquatic and seafood businesses.

Sharing with Lao Dong reporter, Ms. Nguyen Thi Hai Binh - CEO of STP Group said that her business suffered significant damage after the storm and flood. She sympathizes with the sea farmers and wants to support them to stabilize production and recover quickly after the damage.

According to Ms. Binh, currently banks do not have a mechanism to support investment for businesses or people farming at sea, so many people "mortgage their houses" to borrow money for farming at sea. Businesses really hope to reduce interest rates and defer principal and interest payments in business.

The factory area of the enterprise in Yen Bai was severely affected by landslides. Photo: Trinh Cuong

Banks are ready to accompany people

According to the banks' quick report on the situation of customers affected after storm No. 3, a total of 890 customers with a total outstanding debt of VND 15,686 billion were affected after the storm, focusing on industries such as livestock, aquaculture, production, business and trade, ports, fishing vessels, etc.

Sharing the difficulties of the people and businesses, the State Bank's Permanent Deputy Governor Dao Minh Tu has asked banks to quickly review each customer case, clarify the extent of damage, and understand the wishes and proposals of customers. Branches should consider supporting customers with interest rate reductions and boldly lend to help businesses reproduce, do business, and recover...

“After the storm, it is the responsibility of the banking industry to share difficulties with people and businesses; it is necessary to support in the issue of loans so that people have the opportunity to soon stabilize their business and production,” the Deputy Governor emphasized.

The State Bank also requested credit institutions to consider reducing interest rates, restructuring debts, and supporting new borrowers affected by storm No. 3. People and businesses in localities affected by the storm (Quang Ninh, Hai Phong, Hanoi, Lao Cai, Yen Bai...) will be considered for debt repayment restructuring, interest rate reduction and exemption, and continued new loans to overcome difficulties and restore production and business.

Speaking to Lao Dong Newspaper, a representative of Vietnam Prosperity Joint Stock Commercial Bank (VPBank) said that VPBank has implemented a loan interest rate support program for existing individual customers affected by Typhoon Yagi. VPBank will directly reduce loan interest rates for all individual customers with existing loans at the bank and collateral, with a reduction of 0.5 - 1% interest rate.

Agribank representative said that Agribank has directed ABIC Insurance Company to urgently carry out support and compensation procedures for customers, ensuring timeliness.

In addition, Agribank has also established working groups to conduct field visits to assess the overall extent of damage to borrowers, predict the impact on outstanding loans, the ability to repay debt, restructure debt, reduce interest rates on old loans, and provide new loans, etc. to support customers in recovering and stabilizing their business operations.

Compensation payment of more than 7,000 billion VND for damage caused by storms and floods

The Insurance Supervision and Management Department (Ministry of Finance) said that as of 2:00 p.m. on September 13, it had received information about more than 9,000 cases of property and motor vehicle damage; recorded 14 deaths, 18 cases of health insurance. The total amount of money paid for human and property damage is estimated at more than 7,000 billion VND. However, these are initial preliminary figures. According to AIA Vietnam, the unit recorded 5 customers who died due to Storm No. 3, including 4 customers in Hai Duong and 1 customer in Quang Ninh. The total insurance benefits of these 5 customers at AIA Vietnam is about 6.5 billion VND.

At Daiichi Insurance, the company confirmed that there were 6 victims who died in the landslide in Yen Bai. The estimated amount of payment is 2.7 billion VND. Insurance companies are closely following the locality and urgently have the best support plan for organizations and individuals participating in insurance to overcome the consequences of natural disasters, quickly stabilize their lives, and produce and do business in accordance with regulations. Bich Ha

Need timely and practical support policies

Mr. Trinh Van Cuong - Director of Draco Vietnam Investment and Construction Joint Stock Company - said that after storm No. 3 made landfall, it left extremely serious consequences for the people of Yen Bai province, including the company's toy factory (factory in Lam Giang commune (Van Yen, Yen Bai) which was buried by landslides covering 40% of its area.

"We really need timely support from the government and financial institutions and banks to overcome the damage and soon stabilize operations. Businesses that have been severely affected expect banks to have timely and practical support policies to accompany businesses to soon stabilize and restore production," Mr. Cuong shared.

Join hands with the Golden Heart Social Fund to ease the pain and loss after storms and floods

For nearly 30 years, the Golden Heart Charity Fund has clearly demonstrated its role and responsibility to become an address, a bridge to expand the arms of charity, spreading good things in society.

Readers can support those in difficult circumstances affected by storms and floods through the Golden Heart Social Fund.

Please send all donations to: Tam Long Vang Charity Fund, 51 Hang Bo, Hoan Kiem, Hanoi. Phone: 024.39232756. Account number (STK): 113000000758 at Vietinbank Hoan Kiem Branch, Hanoi. STK: 0021000303088 - at Vietcombank - Hanoi Branch, STK: 12410001122556 - at BIDV - Hoan Kiem Branch. Or scan the QR code: