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Saturday, July 20, 2024

Cash-strapped firms sell off assets to stay afloat

The Saigon Times

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HCMC – Cash flow shortages have forced many large companies to sell their assets at half their actual value to stay afloat in tough economic times, heard a meeting between the Ministry of Planning and Investment and the National Assembly Standing Committee on May 9.

Although the money market stabilized in the first four months of this year, lending rates remained high, at 9.56% per year on average, Minister of Planning and Investment Nguyen Chi Dung said.

Many large companies were forced to sell off most of their assets at a price equivalent to only 50% of their actual value, with foreign businesses being their buyers.

The National Assembly Standing Committee said that leaders of many agencies and provinces had showed signs of shifting responsibility, making the investment environment difficult.

For example, HCMC approved an average of 70 real estate projects annually in the past, but only eight projects have been approved in the last two years. The complicated and time-consuming investment procedures, which take one to two years, are to blame.

At the meeting, National Assembly Chairman Vuong Dinh Hue asked the Government to urgently handle officials who evade responsibility and improve administrative procedures and the investment environment.

The Government will present a socio-economic performance report to the National Assembly during the 5th sitting, which is expected to be held this month.

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