Government’s support package to business and civilians in Covid-19 epidemic: Who should access?

The Covid-19 epidemic has now spread in more than 200 countries and territories, causing heavy losses in human lives and profound impacts on all socio-economic fields worldwide. In Vietnam, in the context of the epidemic, Prime Minister issued an urgent directive to support businesses facing difficulties in supply and market, and for the whole economy as well. This is considered a push that will help maintain the struggle of the business sector in the current difficult period. However, with limited resources from Government, what are the key notes to achieve real effect?

“We can not rescue 100% of enterprises, we have to accept that. But I guarantee that many enterprises will have opportunities and potentials to recover. Without this support from Government, they will go bankrupt, disappear from the market permanently, and employees will lose jobs, this is a terrible impact.” – Mr. Nguyen Tri Hieu, an economic expert, emphasized.

First of all, it should be affirmed immediately that the Government’s resources are not unlimited to easily launch similar financial support packages. It is necessary to have thorough and careful studies before meet aspirations of employees or enterprises. Of course, the Government and related departments are in both urgent and cautious surveying and researching for effective solutions as soon as possible, hoping that all civilians and enterprises are proactive with unanimous efforts.

Mr. Nguyen Quang Huan, President of Halcom Vietnam JSC., Vice Chairman of Vietnam Private Business Association, agreed, “The more our government spends, the harder it is to balance the budget. We cannot support all local enterprises. In my opinion, we should take priority to enterprises that produce essential goods, because if this business is affected, the consumption of the whole society will be seriously affected. Then, enterprises with a large number of employees should be prioritized. ” In addition, according to Mr. Huan, there should be a strong team who understands the economy and business – only through local authorities or business associations in order to evaluate enterprises, avoid negative affects. After screening to choose supported enterprises, the Government should publish clearly, publicly and transparently.

“It is necessary to have commitments related to employees, because supporting enterprises also means supporting their employees. This must be executed and supervised very clearly and publicly with transparency. Enterprises themselves when getting finance support must also apply a different mechanism and more precise management method. This is to avoid profiteering situation which is contrary to the goal of economic relief.” emphasized by Mr. Nguyen Thanh Hung – Director of the Business Administration Institute, National Economics University.

Many enterprises have faced difficulties due to manufacturing stop caused by Covid-19 (image sourse: VOV)

Above are some views and opinions from economic experts and business owners, which may not be typical, but contribute to the assertion “An emergency relief package is needed, and it is also important to be carefully practical, especially in the current socio-economic context and internal economic power of Vietnam compared to the regional and international level.” And,  one certain thing is that, as the hope of the Government and Prime Minister, if Vietnamese people and enterprises act proactively with effort, all difficulties will be overcome more easily, and the the national economy can recover fast.

News resource: VOV1 – News channel, The Voice of Vietnam