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In order to borrow from the package, two of the criteria firms must fulfill are having 20-30% of the employees in the social insurance system and they must have been fired for more than a month, and the firm must already pay 50% of the wages for unemployed employees from April 1 to June 30.
Because of Covid-19, most of Viet's customers had halted orders so the company's money flow was disrupted. He is in need of money to pay wages for employees which are costing the company VND40bn a month. During this period, textiles firms have to switch to producing face masks and protective suits and making employees take turns to go to work.
Dang Thi Mui, head of the HR Department at Vina Korea Company, said they had submitted the dossiers a long time ago but were asked to convert land use right certificates. "The guidelines do not mention this but we were told that it was necessary for the authorities to verify the company's assets. And we will have to redo everything if the information of one employee is wrong," Mui said.
She went on to say that they were having difficulties with finding material sources and outlets but they are likely not able to make the preferential loans.
Tran Duc Nghia, director of Delta International Company, said only bankrupted companies could meet the package's criteria. If a firm doesn't have any money left, it can't pay 50% wages for fired employees. Everyone is struggling to find other ways to maintain business and no one is sitting still and just waiting.
Nghia suggested reviewing incomes of companies in the last several months as evidence for the loans. Moreover, the government should extend the loan period from three to at least six or 12 months.
Nguyen Hong Dan, deputy head of Hanoi Department of Labour, Invalids and Social Affairs, said only two firms had applied for the support package because of strict criteria. The department will ask the government to relax the criteria so that firms only need to prove that they are having difficulties in paying wages for employees.
Director of HCM City Department of Labour, Invalids and Social Affairs, said as of June 10, 43 firms had expressed desires to borrow from the package but not a single firm had met the criteria.
On the same day, Minister of Labour, Invalids and Social Affairs Le Van Thanh said they were gathering opinions about the package and would ask the PM's opinions in order to adjust the package.
