Controlling COVID-19 Pandemic, Promptly Removing Business Difficulties

The Ministry of Planning and Investment (MPI) recently announced a draft resolution on business support amid the COVID-19 pandemic. The draft was designed following the conclusion of Prime Minister Pham Minh Chinh at the Prime Minister's Business Meeting on August 8.

The draft resolution of the government aims to quickly control the COVID-19 pandemic to restore production and business activities as soon as possible. At the same time, it will support enterprises to promptly remove difficulties, obstacles and bottlenecks hindering production and business.

The resolution also aims to achieve some specific targets by the end of 2021: Providing credit support for about one million businesses and customers to respond to the pandemic; extending the deadline and reducing/exempting taxes, fees and land rents for about 160,000 enterprises; helping 50,000 enterprises resume operation; reducing electricity, water and telecommunications charges, providing employer and employee support.

According to the resolution drafted by the Ministry of Planning and Investment, the Government decided on four groups of tasks and solutions, clearly assigned to each ministry, branch and locality.

The first group of solutions is to implement flexible and effective measures to prevent and control the COVID-19 pandemic and create conditions for businesses to stabilize and maintain business performance.

In particular, the Government assigned the Ministry of Health to work with relevant agencies and localities to rationally and effectively allocate COVID-19 vaccines as per the governmental resolution, expand the scope of prioritized persons for vaccination: Workers of enterprises in key economic zones and industrial zones, workers of enterprises in supply chains that have production, import and export orders and employ a lot of workers, and workers in some COVID-19 exposed sectors.

The second group of solutions is to ensure stable production, smooth and efficient circulation of goods, and address supply chain disruptions. In particular, the Government assigned the Ministry of Transport, the Ministry of Industry and Trade, the Ministry of Agriculture and Rural Development and other agencies to ensure the circulation of goods, and not apply additional conditions that hinder circulation of goods, especially essentials and input production supplies.

At the same time, the State Bank of Vietnam was assigned to implement solutions to support and remove difficulties on loans for traders and businesses that purchase and temporarily store paddy and rice, especially in the Mekong Delta region.

The third group of solutions is to support cost reduction and remove cash flow impediments for businesses. Accordingly, the Government requested the Ministry of Labor, Invalids and Social Affairs to guide the Vietnam Social Security (VSS) to study and propose policies to postpone and reduce social insurance premiums in 2021 for businesses until June 2022.

The resolution also delegated the Ministry of Industry and Trade to study and report to the Prime Minister in August 2021 on reduction of electricity prices for warehouses of logistics companies, agricultural processors and some sectors with high export value of over US$1 billion in 2020.

At the same time, it will continue to reduce electricity prices for tourist accommodation facilities, coordinate with the Ministry of Finance and related agencies to quickly execute the Prime Minister's direction on building the retail electricity tariff structure.

The draft resolution clearly states that the Ministry of Finance urgently implements policies on extension and reduction of taxes, fees, charges and land rents; and apply preferential tax policy for imported goods to support COVID-19 pandemic prevention and control after being approved by the Government.

In addition, it will consider and study to submit to the Government and the Prime Minister the continued extension of the deadline for paying excise tax on domestically manufactured or assembled automobiles until the end of 2021; continued reduction of registration fees for domestically manufactured or assembled automobiles for an extra period of time in line with COVID-19 pandemic development.

The Government requested the Ministry of Culture, Sports and Tourism to study allowing travel businesses to temporarily withdraw deposits for domestic and international travelling services; reducing settlement time of deposit withdrawals from 60 days to 30 days; extending the time for reducing license fees for travel services and issue tourist guide cards until the end of December 2021.

The fourth group of solutions relates to worker and specialist issues. The Government assigned the Ministry of Labor, Invalids and Social Affairs to propose a policy on flexible application and relaxed regulations and conditions on the grant and extension of work permits for foreign experts working in Vietnam, based on the new context.

In addition, it will consider proposing competent authorities allow enterprises to negotiate with employees to increase overtime hours per month during the pandemic time, provided that total overtime hours cannot exceed 300 hours a year. At the same time, it will work with the State Bank of Vietnam to study and amend Decision 23/2021/QD-TTg to flexibly adjust regulations on tax and bad debt settlement since the pandemic outbreak to facilitate enterprises to access the finance to pay wages to employees.

The draft resolution also states that the Government requires the Ministry of Foreign Affairs to further promote "vaccine diplomacy"; mobilize and promote partners to provide vaccines as pledged; accelerate the transfer of technology for vaccine and medicine production for COVID-19 treatment; and support equipment, supplies, medical biological products.

In addition, the Ministry of Health will coordinate with central and local agencies to ask the Prime Minister to consider applying a special mechanism of pandemic control and prevention for entry of specific foreigners. It will speed up research, negotiation and mutual recognition of "vaccine passports" with countries and territories in order to soon reopen the economy when possible.

Business operations in new normal

The draft resolution clearly states that provinces/cities should fully study and assess actual capabilities of enterprises and localities when applying COVID-19 preventative measures for safe production.

Together with enterprises, they will actively research, decide and take responsibility for plans and conditions for safe production and amid the COVID-19 pandemic (including inspection and permission for enterprises to resume operation when possible).

Localities need to creatively and flexibly apply good models and practices.  In case of emergency of difficulties or problems beyond their capacity, they will promptly report them to the Prime Minister's Special Working Group 7. They will thoroughly cope with supply chain disruptions and freight transport congestion due to improper regulations and procedures on COVID-19 pandemic prevention and control.

Source: Vietnam Business Forum