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Lack of funds, rising inventories worry businesses

Update: June, 02/2012 - 08:09

HCM CITY — HCM City authorities have promised to help businesses overcome their difficulties by securing funds for production and other business activities.

Speaking at a meeting on Tuesday to review the city's socio-economic performance in the first five months, the Chairman of the People's Committee, Le Hoang Quan, said authorities would work with banks to help businesses access funds.

He called on State-owned enterprises to report their difficulties and how much funds they each need.

The list will be sent to the State Bank of Viet Nam.

Closer collaboration is required between businesses and banks to overcome the current challenges, he added

Nguyen Van Truc, general director of Sai Gon Agriculture Incorporation, said that agricultural companies were getting loans at 14 per cent interest, but their terms should be extended from the current three to four months to at least nine months to help them stabilise their business.

Besides funds, the piling up of inventories due to a lack of demand and increasing incidence of traffic accidents were also at the top of the meeting agenda.

Mai Thi Thu Thuy, secretary of the Party Committee of the Central State-owned enterprises in HCM City, said unsold products were the biggest problem facing the sector.

In the year to date 29 per cent of products manufactured by State-owned enterprises in HCM City remained unsold and had to be stockpiled, she said.

Selling them out was the best way to save these enterprises, she said, adding measures to stimulate demand were needed.

Nguyen Thi Hien Luong, deputy director of the city Department of Transport, said there had been an increase in road accidents in May.

So far this year the city has suffered 268 accidents in which 240 people were killed and 120 others injured.

Major General Phan Anh Minh, deputy director of the HCM City Public Security Department, slammed the illogical traffic system for being a main reason for the problems facing city roads. — VNS

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