HCM City supports firms hard-hit by COVID-19

Secretary of Ho Chi Minh City’s Party Committee Nguyen Thien Nhan has told municipal agencies to help local businesses affected by the COVID-19 pandemic maintain production and avoid bankruptcy.

29, Jul. 2020

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HO CHI MINH CITY, VNA - Secretary of Ho Chi Minh City’s Party Committee Nguyen Thien Nhan has told municipal agencies to help local businesses affected by the COVID-19 pandemic maintain production and avoid bankruptcy.

Director of the municipal Department of Planning and Investment Le Thi Huynh Mai said that as of June 20 more than 8,300 enterprises in the city have closed temporarily, a 40 percent increase from the same period last year.

In addition, more than 2,500 businesses have completed dissolution procedures, a 10 percent increase year on year, due to the COVID-19 pandemic.

The number of enterprises that have dissolved or temporarily stopped operations in the second quarter also increased sharply.

This trend may continue to increase in the coming months, Mai said.

The top priority now is to help businesses maintain production and avoid to go bankrupt, and prevent workers from losing jobs, she added.

The city plans to help companies reduce production costs and encourage domestic production to replace imported goods.

It will also help expand the domestic value chain, the city's Party Committee said.

With this support, the city aims to significantly help more than 8,300 businesses that have suspended operations because of the COVID-19 pandemic. - VNA