HCMCity (VNS/VNA) - The State Bank of Vietnam will considersimplifying lending procedures to help COVID-19-affected firms easily accesspreferential interest rate loans, SBV Deputy Governor Dao Minh Tu said.

Speaking at a seminar last week, Ly Kim Chi, chairwoman of the HCM CityFood and Foodstuffs Association, said enterprises need better accessto new loans, payment term extensi and lower interest rates.

To access the preferential loans, enterprises must prove losses, and haverevenue and profits reduced, but the number of food industry enterprisesaccessing the loans can be "counted on the fingers of one hand",Chi said, explaining that the procedures were too complicated. 

Pham Van Viet, deputy chairman of the HCM City Association of GarmentTextile Embroidery and Knitting as well as General Director of Viet ThangJeans Co., Ltd, said the textile industry had been hit hardby both input and output problems.

To retain workers, enterprises have had to continue production, butgoods cannot be exported, leaving large inventories.

Export and domestic markets both face difficulties, while the turnover ofbusinesses is only about 30 per cent compared to the same period last year, Viet said.

To support businesses, banks need to provide them loans with preferentialinterest rates being extended from the current 12 months to 24 months, and keepthe exchange rate stable, he added.

Tran Viet Anh, deputy chairman of the HCM City Union of Business Associations,said the city government has tried to help businesses stay afloat byoffering support policies related to corporate income tax,value-added tax and personal income tax.

Lowering lending interest rates, deferring repayment of loans, andreducing social insurance and health insurance premiums for employers areall needed.

Many businesses are finding it difficult to access HCM City's 250trillion VND (10.7 billion USD) stimulus package meant to support thoseaffected by the pandemic, especially small- and medium-sized enterprises,Anh said.

The procedures are complicated and official agencies are not providingguidance, according to reports from businesses, he added.

The city should promote the use of information technology to enablebusinesses to access financial support and continueadministrative reforms, Anh said./.