The spread of COVID-19 has caused business disruption in Vietnam since the first case was announced in late January. The hardest hit areas include tourism and associated services, cross-border trade, manufacturing and agribusiness, among other sectors.

Tourists in Da Nang city. Tourism and associated services are among the hardest hit sectors by the COVID-19 epidemic.

IFC is supporting Vietnamese businesses by increasing trade limits for four client commercial banks including An Binh Commercial Joint Stock Bank (ABBank), Tien Phong Commercial Joint Stock Bank (TPBank), Vietnam International Commercial Joint Stock Bank (VIB) and Vietnam Prosperity Joint Stock Commercial Bank (VPB).

The increased total limit of US$ 294 million will enable these banks’ capacity to cover payment risks in granting trade financing to local companies, mostly small and medium enterprises, IFC said in its press release on February 21.

“VIB welcomes this timely and meaningful initiative to cope with possible liquidity constraints and de-risking trends during this challenging period,” said VIB’s Chief Executive Officer Han Ngoc Vu.

“IFC’s guarantee will help local banks significantly extend trade finance to more importers and exporters, some of which are credit-constrained and rely on bank trade facilities to manage cash flows and purchase raw inputs.”

This initiative follows the State Bank of Vietnam’s call to financial institutions to support local businesses, which may be affected by the coronavirus outbreak – particularly those in trade and supply chain linkages.

“Leveraging IFC’s global experience in responding to several economic crises in the past, the decision to increase trade limits is an effort to ensure continued trade flows during this challenging phase. The expanded trade finance line will help mitigate trade finance risks, thus softening the impact of COVID-19 on the Vietnamese economy and the private sector,” said Mehmet Mumcuoglu, IFC Financial Institutions Group Manager for East Asia and the Pacific.

Following this initiative, IFC is also exploring other expanded interventions to extend its support to Vietnam to mitigate the economic impact of COVID-19 and help the nation sustain robust economic growth, said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Laos.

Bac Giang continues improving business climate to heighten national competitiveness

(BGO) - Chairman of the provincial People’s Committee of Bac Giang province (PPC) has issued the Directive no 03/CT-UBND to continue implementing the key tasks and solutions for improvement of the investment and business climate and enhancement of the national competitiveness in 2020.

Bac Giang Business Consultation and Support Center joins hands with enterprises to handle difficulties

(BGO) – The Bac Giang Business Consultation and Support  Center (BCSC) under the Bac Giang provincial Business Association has recently taken great efforts to consult and instruct the individuals and enterprises to handle the difficulties and obstacles arising in such fields of investment, taxation, customs..., helping create completed and developed environment for production and business in the province.

Improving business environment, enhancing national competitiveness

The Ministry of Justice was assigned by the Government to take charge of improving the law compliance cost index (B1 Index) according to the Government’s Resolution No. 02/NQ-CP dated January 1, 2019.This vitally important task has been actively implemented by the judicial sector, bringing about many positive results.

Tay youths start business with community-based tourism model

A group of young people, including seven secretaries of Youth Union branches, led by Doan Van De - Secretary of the Youth Union branch of Thuong Lam Commune, established Thuong Lam cooperative to implement “community-based tourism” projects.

Vietnamese enterprises seek food business opportunities in India

Vietnamese enterprises joined the third Indian International Food and Beverage Expo (Indus Food 2020) in Uttar Pradesh, India, from January 8 to 10, to seek business cooperation opportunities in confectionery, beverages, energy drinks and fruits.

Source: NDO/VNA