Economic expert Bui Kien Thanh: ″It′s possible to borrow money by mortgaging inventories″

Economic expert Bui Kien Thanh said: “This solution package is to help well-run-enterprises in their difficulties (so they will be able to pay tax and eligible for tax cuts, tax extension). But there′s no use of this solution package for enterprises which are stagnated with a large number of inventories”.

“About VAT extension solution, I think it does not help reduce the price of goods and it fails to stimulate consumption”.

“I think inventory is property, therefore banks can offer loans to enterprises from 50-70% based on those inventories, so they can get money for their production. It means enterprises must mortgage their inventories to banks”.

“At present, the State Bank has controlled ceiling interest rate of 15% (only in four priority areas), but it is still too high. Enterprises only run well when the interest rates are under 10%, if over 10% they will work perfunctorily”.

“The State Bank should offer special programs for commercial banks to borrow money, so that they will be able to lend enterprises that money to solve inventory mortgage”.