Many retail spaces are left empty during the pandemic. HCMC has accelerated the disbursement of interest-free loans for pandemic-affected enterprises - PHOTO: L.VU

HCMC – The HCMC branch of the Vietnam Bank for Social Policies has accelerated the disbursement of interest-free loans to help businesses pay the salaries of their employees, said Tran Van Tien, director of the branch.

Tien said the branch had coordinated with the relevant agencies to introduce support policies and lending procedures. Many companies in need of capital are completing paperwork to borrow the loans.

Three enterprises have borrowed nearly VND1.14 billion to pay the salaries of 210 laborers leaving their jobs. Specifically, Viet Fun Travel Co. Ltd borrowed VND132.6 million to pay the salaries of 10 laborers, Vi Nam Viet Production-Trading Corporation borrowed VND517.65 million to pay 145 laborers and Kingscross Restaurant Co., Ltd borrowed VND486.2 million to pay 55 employees.

On August 18, Bui Van Bon, deputy director of the Vietnam Bank for Social Policies' HCMC branch, informed that the branch had approved loans for three more enterprises and VND898 million was expected to be disbursed this week to pay the salaries of 210 laborers.

To access the capital sources, enterprises must not incur bad debts at local credit institutions and branches of foreign banks in Vietnam when they ask for loans. In addition, laborers must pay social insurance premiums until the month before they leave their jobs and must leave their jobs for at least 15 consecutive days between May 1, 2021, and March 31 next year.

If enterprises have been asked to suspend operations from May 1, 2021 to March 31, they can borrow loans to resume production.

At an online meeting on August 17 between the Vietnam Bank for Social Policies and its local branches, it was reported that 51 branches had disbursed nearly VND170 billion for 267 enterprises so they could pay the salaries of over 48,700 laborers.

The bank has received 308 applications of employers to borrow VND174.6 billion to pay the salaries of nearly 50,200 laborers and has approved the applications of 276 firms with a total loan of VND170.7 billion.

Bank director Duong Quyet Thang said localities practicing social distancing had instructed employers to complete dossiers through the National Public Service Portal and postal services.