Mechanical and electrical enterprises in Ho Chi Minh City are facing difficulties in expanding investment. Currently, enterprises producing supporting industrial products have small production scale, weak resources but do not receive much investment to increase competitiveness.
On November 27, speaking with Lao Dong, Mr. Do Phuoc Tong - Chairman of the Ho Chi Minh City Association of Mechanical and Electrical Enterprises (HAMEE) said that currently, production and business have great competition.
Foreign enterprises such as China, Korea... are strongly supported to develop. Meanwhile, domestic enterprises only work to "have enough to eat, enough to live", so to create a strength for Vietnam's supporting industry to compete and develop, it requires more investment.
At the same time, policy support is needed, but in reality there are still many barriers, not enough for businesses to boldly invest. Businesses that boldly invest face difficulties when policies are delayed, thus creating a huge psychological barrier. Currently, there are many Chinese businesses investing in Vietnam, so competition is becoming more difficult.
Since 2020, businesses in the industry have actively participated in Ho Chi Minh City's investment stimulus program, with the expectation of receiving interest rate support to develop production and join the global supply chain. However, after more than 3 years, businesses have yet to receive the interest rate support as committed.
"From the beginning of 2023 until now, there have been a total of 5 appeals for help signed by a group of businesses. In July 2024, HAMEE represented Ho Chi Minh City in sending a letter of appeal. In November 2024, the association continued to send another letter of appeal to the city to be more drastic. Because the slow settlement and disbursement have caused difficulties for businesses that have invested, and businesses that have not invested or intend to invest are hesitant, causing psychological barriers" - Mr. Do Phuoc Tong shared.
In the letter "Requesting to remove difficulties and disburse interest rate support money according to the approved investment stimulus program" sent to the Ho Chi Minh City government on November 18, HAMEE said that after being approved to participate in the program, businesses have boldly invested, sold assets, mortgaged assets to borrow from banks, built infrastructure and purchased modern equipment to improve competitiveness.
However, due to delays in disbursement, they are now facing huge financial pressure. Some businesses are unable to maintain production activities, while thousands of workers are at risk of losing their jobs.
The delay in disbursement has caused businesses to lose many business opportunities, making it extremely difficult to compete with foreign businesses. If support is not received soon, there is a risk that bank loans will become bad debts, businesses will be acquired or go bankrupt, and thousands of workers will face difficulties.
The association proposed solutions to resolve the issue, including the urgent disbursement of approved interest rate support funds to businesses. At the same time, the unit also requested the leaders of Ho Chi Minh City to quickly pass a special resolution to completely resolve the above problems.
