Today: 16/07/2020 06:45:39 (GMT+7)
THE CENTRAL AGENCY OF THE COMMUNIST PARTY OF VIETNAM BAC GIANG PROVINCE THE VOICE OF THE PARTY, GOVERNMENT AND PEOPLE OF BAC GIANG PROVINCE

Bac Giang accompanies enterprises to overcome difficulties amid Covid-19 outbreak

(BGO)- Outbreak of the acute respiratory disease caused by novel corona virus (Covid-19) has dramatically affected operation of many enterprises in the northern province of Bac Giang especially those import materials from China. Facing this situation, the provincial competent agencies have been accompanying with the enterprises to gradually overcome difficulties while supporting the production and business.

Some northern border gates have been suspended due to Covid-19 outbreak causing difficulties for importing production materials from China.

Otherwise, a number of material suppliers in China have temporarily closed, thus supply shortage is predictable.

Bac Giang province, accompanies enterprises, overcome difficulties, Covid-19 outbreak, acute respiratory disease, production and business, production materials

Workers of Bac Giang Garment Corporation complete the products in early 2020.

According to the survey, enterprises in the province facing the risk of material shortage due to indirect impact of covid-19 outbreak are mainly in the sectors of garment, electronic component production and animal feed processing.

Bac Giang Garment Corporation (BGG) in Dinh Ke ward, Bac Giang city has to import 70 percent of the materials from China such as cloth, zips and buttons.

According to Nguyen Huu Phai, the company’s CEO, the company plans to produce 3.5 million clothes for export to America and some European countries.

Due to Covid-19 outbreak, the company could not import materials for nearly 1 month. Currently, the company can only use the available materials in their stock by the end of February. Other garment companies in the province are facing the same circumstances.

Not only the garment companies, many Chinese direct investment companies in the industrial parks and clusters are also slowing down production because they have not been able to import materials.

the State Bank, Bac Giang branch urged the credit organizations in the province to balance the financial resources to meet the capital demand for production and business.

According to representative of KCD Company Limited (a Chinese enterprise) in Song Khe - Noi Hoang industrial park producing electronic accessories like mobile phone connector, charger and headphone, 100 percent of their materials are imported from the corporation in China. Due to Covid-19, they could not import materials for production once per month as before.

The province is home to 141 Chinese investment projects. These projects also got into the same situation.

Facing this circumstance, many enterprises are seeking for alternative material sources to maintain their operation in coming time. Particularly, BBG is contacting the Chinese partners after they resume operation to promptly finalize the import procedures by sea.

However, it will take longer to transport by sea than by land. It takes 21 days for a shipment from China to Vietnam including 7 days by sea and 14 days for quarantine as regulated.

Ha Phong Export Garment Joint Stock Company maintains their production based on available materials while awaiting full materials to complete the products. In addition, the company made plans to seek domestic suppliers and import temporary materials from Republic of Korea, India, Bangladesh and Brazil with higher prices to make up for the material shortage.

In line with the enterprises’ efforts to stabilise production, the State Bank, Bac Giang branch urged the credit organizations in the province to balance the financial resources to meet the capital demand for production and business.

The credit organizations need to proactively grasp the business performance and evaluate impacts of Covid-19 outbreak on their customers especially the sectors of tourism, agriculture and export-import to timely take measures to assist and remove obstacles for the customers.

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Hai Minh

Bac Giang province, accompanies enterprises, overcome difficulties, Covid-19 outbreak, acute respiratory disease, production and business, production materials
 
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