Many businesses in Binh Dinh have faced difficulties caused by the global economic recession this year. Just recovering from the financial crisis, they had to continue suffering the consequences of the flood.
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PISICO’s workers clean and dry wet products. Photo N.T
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“Sunk” in the flood
The flood hitting the central region several days ago devastated most businesses’ offices and warehouses in Phu Tai industrial park (IP).
Coming to the Phu Tai IP on November 9, we saw a series of fences collapsed by the flood. Workers were tidying up the warehouses, drying wet raw materials and products, and disassembling components of machines for repair.
“The company was ready to deal with the typhoon Mirinae, but we couldn’t respond to the sudden flood afterwards,” PISICO’s general director Le Van Hong said unhappily. “All PISICO’s warehouses and factories were seriously flooded.”
The damage was estimated to reach over VND26.9 billion, including a lot of timber swept away and machines and papers flooded.
The factories have had to close for 45 days before opening again, Hong said.
Half of enterprises locating in the north of Phu Tai IP were also destroyed by the flood. “According to the preliminary estimate, businesses in Phu Tai IP have lost nearly VND300 billion,” said Man Ngoc Ly, head of the province’s industrial zone authority. “The production has to be stopped and workers must be off work without being paid.”
Requiring support
This year has seen many difficulties in the industrial production sector in Binh Dinh. While the economy was showing signs of recovery, businesses were badly affected by the fierce flood.
“Some enterprises which suffered less damage could overcome the consequences and recover their operation, but many seriously devasted by the flood require support from functional bodies and banks,” said Hong. “ Commercial banks need to create favourable conditions for these businesses, aiming to help them take out preferential loans.”
The businesses also asked the Government to continue the interest-subsidized loan program for businesses in flood-hit localities because the short-term loan packages are scheduled to end by December 31.
Ly also said the province’s leaders need to suggest banks implement suitable measures to assist businesses in recovering their operation.
The relevant bodies were assigned to total up the loss of businesses to help them receive the support from the province. Binh Dinh will also submit their suggestions to the State Bank of Vietnam for consideration.
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