Tension in the East Sea caused by China’s illegal installation of Haiyang Shiyou 981 oil rig in the exclusive economic zone of Vietnam has been the focus of public attention. The anti-China protests of extremists in southern and the central Vietnam has tarnished the image of a stable country and attractive investment environment. Vietnam’s heads of Government as well as leaders of local ministries have made commitments and solutions to reassure investors. Many supporting policies to help businesses revive their production have been directed by Prime Minister Nguyen Tan Dung.
The situation has been stabilised in the industrial zones and economic zones in Binh Duong, Dong Nai and Ha Tinh, where the first outbreak of spontaneous demonstrations and extremist actions to destroy plants of FDI enterprises took place. Many companies have returned to their normal production and the situation has defused thanks to the efforts of the local authorities and ministries.
Ministry of Public Security in the press conference also made commitments to ensure the highest safety for investors and FDI enterprises in Vietnam. Lt. Gen. Hoang Kong Tu, Acting General Director of Security Department II, said there were two people dead, nearly 140 injured and hundreds of people having violated the law are in custody.
In a recent press conference, Assistant to Minister of Foreign Affairs Dang Minh Khoi confirmed that the Vietnamese Government will take all effective measures to protect the safety of foreign citizens and ensure that all unfortunate incidents will not recur and coordinate with the authorities to resolve the consequences.
Commitment to protect investment environment and foreign investors is also affirmed by Prime Minister Nguyen Tan Dung. Prime Minister requests an expeditious implementation of synchronous measures to actively prevent and strictly deal with those who incite violence and violate the laws; to ensure security and order and absolute safety of life and property of each individual and business; to ensure normal production and business activities of enterprises, especially those of foreign investors.
Prime Minister Nguyen Tan Dung chaired a meeting to discuss solutions to assist enterprises to overcome the damage. The solutions include insurance, tax incentives, access to credit and stable manpower. Prime Minister asked the People's Committees of provinces and centrally-run cities faced damages to send staff to work directly with each company to understand the actual situation, and immediately establish supporting teams to solve issues related to administrative procedures. Prime Minister asked to give priority to support recovery, validation, provide records, documents to determine the value of the damaged assets and apply related policies. In case records and documents are lost, agencies are allowed to implement regulations based on the commitment of businesses and post- test. The Ministry of Finance in coordination with related focal points have to guide insurance companies define the damage and cover by insurance; expeditiously determine the value of the damage to compensate under simplified procedures.
The tax authorities and customs have to base on actual damages of business to extend the deadline for filing tax declarations; extend the deadline for payment of taxes and amounts to the State budget arisen before May 2014 which has not yet been paid, corresponding to the extent of the damage. The maximum extension is 2 years, late payment by damaged companies will not face penalties. The companies are also exempt from tax and reduce export tax, import tax and refund export and import tax for damaged goods. The Customs allow customs clearance of exports and imports shipments of businesses which have tax debt. Tax incentives also include deduction or refund value added tax for damaged goods and services which have not been compensated, including cases without documents and invoices. Companies declare deductible expenses when determining taxable income for corporate for value losses which are not compensated or not under compensation and interest payment contributions to the charter capital for recovery of damage. They are also reduced by 30 percent of excise tax in 2014 but it did not exceed the value of the damaged property after compensation.
Damaged businesses will be exempt from land tax. Businesses which face damage in infrastructure associated with the land use rights, will be exempt or reduce land rent fee for infrastructure companies.
Ministry of Labour - Invalids and Social Affairs directed the local authorities to have appropriate measures to assist, provide timely replaced labour for labour force shortage. Ministry of Public Security has created all favourable conditions for rapid entry visas for foreign investors and workers to Vietnam for damaged businesses and those in need of additional foreign workers.
At the same time, the regulations on managing foreign workers in Vietnam are also relaxed to meet the urgent needs of workers. Foreign experts to work in Vietnam only have to own a bachelor's or higher degree with at least 05 years of experience in the expected field of work. The granting of work permits for foreigners residing in Vietnam for 6 months or more requires only judicial documents granted by Vietnam’s authorities.
Businesses which cannot operate back and are not able to pay salaries to workers from April to June 2014 are under the review and applied the provisions of the unemployment insurance system to address unpaid salaries for workers.
The Prime Minister also asked the State Bank to instruct credit institutions to take measures timely, to overcome difficulties in transactions and loans to help businesses quickly recover and grow production business.
In the recent days, the local authorities and industries also had decisive actions to handle the situation and reassure investors. Minister of Planning and Investment Bui Quang Vinh affirmed that he had signed documents sent to the Embassy, the Foreign Enterprise Associations in Vietnam and said this was a very unfortunate incident and authorities at all levels in Vietnam shared the losses with investors and businesses.
Local authorities also have flexible but aggressive moves to stabilise the situation. Ho Chi Minh City authorities have an urgent meeting with representatives of foreign consulates and foreign enterprises association in Ho Chi Minh City, committed to ensuring safety of lives and property of the business, investors, and foreigners in Vietnam. Ho Chi Minh City has asked IPs Management Board of Ho Chi Minh City and in the region to establish a hotline linked with functional agencies such as police, Department of Foreign Affairs to receive documents and handle timely requirements of foreign entrepreneurs and investors in the province.
Some provinces which have many industrial zones have also implemented contingency plans. Bac Ninh Provincial People's Committee has asked the authorities to ensure security and order in industrial zones, which requires the industrial parks of VSIP, Tien Son, Que Vo, Yen Phong, Dai Dong - Hoan Son, Thuan Thanh 3, Hanaka etc to notify the companies in those IPs strengthening the security and order within their factories, detect unusual problems and report to the police and local authorities.
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