HCM City helps firms hard-hit by COVID-19 avoid bankruptcy

Tuesday, Jul 28, 2020 17:33

HCM City agencies plan to help businesses avoid bankruptcy and maintain production. — VNA/VNS Photo

Secretary of the HCM City Party Committee Nguyen Thien Nhan has told local agencies to help local businesses affected by COVID-19 maintain production and avoid bankruptcy.

Le Thi Huynh Mai, director of the city’s Department of Planning and Investment, said that as of June 20 more than 8,300 enterprises in the city have closed temporarily, a 40 per cent increase with the same period last year.

In addition, more than 2,500 enterprises have completed dissolution procedures, an 10 per cent 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. — VNS

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