Recent COVID19 Measures Hit Steel Makers in Vietnam
VNA reported that Vietnamese steel enterprises have felt a critical impact from the COVID-19 pandemic, with a gloomy market and sharply declining orders,
VNA reported that Vietnamese steel enterprises have felt a critical impact from the COVID-19 pandemic, with a gloomy market and sharply declining orders, and are in need of further support from the Government. A wide range of steel companies reported sluggish manufacturing and low transaction numbers due to project delays as a result of social distancing measures. The Vietnam Steel Association said that “Steel consumption has fallen as the construction sector has cooled, while the transportation of goods and materials to northern localities like Hai Duong, Hai Phong, Hung Yen, and Quang Ninh has faced challenges from new virus epicentres in Hai Duong and Quang Ninh. Preparations for pandemic prevention and control and the arrangement of logistics at steel plants, particularly the Hoa Phat steel complex in Kinh Mon district, Hai Duong province, are costly and have affected production.”
In a bid to remove bottlenecks facing local manufacturers, VSA has recommended that the State Bank of Vietnam and commercial banks provide credit support to companies, such as extending payment deadlines or cutting loan interest rates.
Most recently, the Ministry of Finance recommended the Government consider allowing the cost of COVID-19 prevention and control to be deductible for tax purposes.