Implementing Resolution 11 of the Government, Enterprises are facing many difficulties.

(Baonghean) -Implementing Resolution 11 of the Government on curbing inflation, banks tightened credit, the treasury seemed to stop delaying transactions. The supply of capital for the economy was tightened. Many businesses were operating in a state of capital hunger...

Currently, businesses in most industries: real estate, construction, credit, finance... are facing many difficulties when capital flows are tightened, all banks and treasuries are cautious with loans and disbursements. Lack of capital, combined with the increase in prices of all input materials, makes all businesses that follow suit and other businesses face difficulties. Large businesses still have a chance to wait, while small businesses are at risk of bankruptcy.

Although Nghe An Petroleum Corporation won dozens of bids in 2010, many projects had to stop due to lack of capital, while huge loans for large projects were due to be repaid at sky-high commercial interest rates. The director of Truong Son Construction Company, which is constructing traffic projects, said: "Hundreds of workers are unemployed, many projects cannot borrow capital to construct. After gathering materials, we don't know when we will have to wait."

The Chairman of the Board of Directors of Tecco Company, which invests in real estate, also said: Apartments are selling very slowly. Banks are tightening lending for real estate, making business difficult. Meanwhile, real estate investment requires a lot of capital.

In the agricultural sector, many projects seeking foreign funding have also been halted due to the implementation of Resolution 11. The head of the provincial traffic works management board said: At least 5 suspension bridges in the province have had their funding suspended despite urgent needs. In the financial and credit sectors, many banks are holding the "handle" of their business capital. Many projects are ineffectively implemented, with high credit balances and high risks, while mobilization is difficult and capital mobilization is increasingly high with interest rates sometimes reaching 18-20%/year.

Capital is not only a condition for production but for many businesses it is the main "raw material". Capital is scarce in the main market, but the "black market" credit market is developing. Borrowing 1 million VND, the borrower has to pay 3,000 VND to 5,000 VND/day. Some construction and trading businesses have to borrow this capital urgently, but borrowing this capital, businesses are not careful to fall into a dead end.

In order to implement Resolution 11, the State Treasury issued Official Letter No. 334/KBNN.VP ​​dated March 8, 2011, stipulating the suspension of disbursement for newly started projects, slowing down the overall disbursement progress. In addition, many units also said that the Treasury was too cautious and rigid in its implementation, thus affecting the implementation of economic development tasks. Although the amount of reduction according to Resolution 11 for basic construction was not much (60 billion VND), it was not only those projects that were affected. The consequence was a sharp decline in investment attraction, ineffective attraction, and many unfinished projects also because enterprises could not borrow capital such as Hoang Mai Industrial Park infrastructure, Do Luong cement, etc.

Enterprises in Nghe An are mainly small and medium-sized enterprises, which have just recovered from the crisis, and are now facing mounting difficulties. Many enterprises are heavily indebted and are “huge” debtors to the Development Bank and commercial banks. Meanwhile, also implementing Resolution 11, the Ministry of Finance is also urging tax collection, especially tax debt collection.

While inflation has not decreased, businesses can only wait and hope that the Government will give them a deadline to implement Resolution 11, and at the same time have solutions to support small and medium-sized enterprises that are facing many difficulties.

Chau Lan