Due to the impact of COVID-19 pandemic, advertising companies and companies which have rented locations for billboards are facing a lot of difficulties. Most of the companies are looking forward to receiving support from authorities.
Due to the impact of COVID-19 pandemic, advertising companies and companies which have rented locations for billboards are facing a lot of difficulties. Most of the companies are looking forward to receiving support from authorities.
Proposal to reduce location rent
On September 6, Toan Dung Advertising Co., Ltd. sent a document to Khanh Hoa Provincial Department of Culture and Sports proposing a 50% discount on the rent of outdoor advertising locations in 2021. The company has undergone financial difficulties in the past three months of operation suspension. In addition, the company's customers have also had difficulties, so that they haven’t signed advertising contracts. Some of them have signed contracts but asked the company to reduce rent. Toan Dung Company even couldn’t collect debts because their customers dissolved. “Since the beginning of July, we have had to lay off 22 employees. We are looking forward to receiving supports from the province so that our company can recover," said Huynh Ngoc Dung - director of Toan Dung Advertising Co., Ltd.
|
An Lac Advertising Co., Ltd. has also proposed 50% discount on outdoor advertising locations. GoldSun Co., Ltd. (Hanoi) has requested not to charge rent for 6 months. According to GoldSun Company, their customers requested to liquidate contracts, stop cooperation, extend time of free advertising, offer 30% - 50% discount on contract value, etc. Other companies such as Nha Trang Bay Investment and Construction Joint Stock Company and Vinpearl Joint Stock Company - Nha Trang branch have also proposed extending payment time; reduce advertising media rent by 50% in 2021 and 2022, and so on.
Seeking solutions
The provincial Department of Culture and Information has sent a document to the provincial People’s Committee about this issue. Accordingly, ten companies which have rented locations for billboards are being affected by the pandemic. In 2020, the total receivables were nearly VND6.7 billion; more than VND5.4 billion was collected. In 2021, the total receivables are more than VND7.4 billion, but only nearly VND44 million has been collected. The provincial Department of Culture and Sports has directed the Center of Culture and Cinema (the unit that directly signs contracts with companies) to actively work and urge the collection in 2021. However, due to the impacts of COVID-19, most companies are facing financial difficulties. In addition, three companies that won the auction but have not signed location lease contracts also need to be supported.
According to Nguyen Thanh Ha, director of the provincial Department of Culture and Sports, in February, the provincial People's Committee issued a document on removing difficulties for companies which have rent advertising locations. This has greatly supported the advertising companies affected by the pandemic in 2020. However, the fourth wave of COVID-19 has caused more severe difficulties for the companies. Therefore, it is necessary to support the companies which have rent advertising locations.
The provincial Department of Culture and Sports proposed some specific and practical solutions to the provincial People's Committee to remove difficulties for the companies. For example, the department directs the provincial Center of Culture and Cinema to continue to urge companies to fully pay the 2020 fees. For the 2021 fees, the department proposes to reduce 50% of the location rent for companies; the remaining 50% of the fees is extended until March 31, 2022. For the companies that won the auction but have not signed location lease contracts, contract signing time should be extended to March 31, 2022. This will help companies not lose their deposit as well as have time to find customers.
The proposals of the provincial Department of Culture and Sports have received good response from some companies.
Giang Đinh
Translated by H.N
