The Ministry of Planning and Investment (“MPI”) has sent to state authorities and trade associations, also enterprises for comment a draft of the Government’s Resolution on goals and solutions to solve difficulties for manufacturing and trading (the “Draft Resolution”). The Draft Resolution proposes the promotion of disbursement of public investment and ensures social order and safety in the context of the COVID-19 pandemic .

  1. General contents

The Draft Resolution consists of 3 parts:

1.1 Implementation principles: 6 principles including:

– Focusing on continuing to implement solutions to prevent and combat the COVID-19 pandemic and resolve difficulties; facilitate the best conditions for citizens and enterprises in manufacturing, trading and investment;

– Continuing to promote administrative reform and innovation to improve the trading and investment environment and attract resources to promote national development;

– For supporting policies, it is necessary to ensure correct subjects, publicity and transparency, and not to allow anyone to take advantage of supporting policies. There are strict sanctions against acts of taking advantage and seeking profits.

1.2 Specific missions and solutions

Including 2 groups specified by competence, as follows:

– Groups under the Government’s authority:

+ Continuing to resolve difficulties for manufacturing and trading, support to those affected by the COVID-19 pandemic;

+ Attracting social investment capital;

+ Promoting the implementation and disbursement of public investment.

– Groups under the authority of the National Assembly: considering and deciding on goals and solutions submitted by the Government.

1.3. Implementation organization: The Government assigns ministries, central authorities and localities to implement specific goals and solutions, including:

– Immediately implementing solutions within the scope of their functions and authority to continue to resolve difficulties for manufacturing and trading.

– Guiding the implementation in a timely, public, transparent and proper manner, not supporting voluntary subjects who do not participate.

– Based on the concerned functions and missions, reviewing, researching and evaluating specific impacts as a basis for the Government to submit to the National Assembly for consideration and approval.

  1. Aggregated contents and some highlights

Based on the opinions of the units, some outstanding issues are listed as follows:

– Proposal for tax exemption, reduction, such as resources tax, environmental protection tax, personal income tax, corporate income tax for small and micro enterprises, etc.

– Proposal for exemption and reduction of fees and charges, such as land rental fee, business registration fee, electricity fee, aviation service price, license fee, loan guarantee fee, registration fee, etc.

– Proposing to extend and delay the tax payment deadlines, focusing on export tax and special consumption tax on assembled and domestically manufactured cars until the end of December, 2020.

– Allowing special entry procedures for foreign experts, business managers, and technical workers.

– Promoting the disbursement of public investment capital by resolving outstanding problems.

Accordingly, the MPI has summarized these issues and explained some contents to the Government for consideration and decision.

Besides, banks have tried to offer credit packages of 300,000 billion dong with interest rates lower than 2%. However, enterprises still wish to have more support packages, specifically stronger support from the State Bank. Interest rates can be reduced further, not only the 300,000 billion package.

The Ho Chi Minh City Government also has a policy to implement the social security support package from March 16, 2020. On March 27, 2020, the City People’s Council issued a resolution to support citizens who lost their jobs or stopped working those ineligible for unemployment insurance and groups of non-public preschool and preschool teachers affected by COVID-19. Numbering over 100,000 people. The total budget is VND 306 billion.

In general, the COVID-19 pandemic has had a severe impact on manufacturing and trading enterprises. Therefore, the Government’s supporting policies and measures, therefore, will create more favorable conditions for enterprises in re-manufacturing and recovery in the coming period. Hopefully, the Government’s support policies and measures will be quickly implemented and applied to enterprises and citizens in reality. Only then, will the country’s economy be revived and prevent financial crisis.

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