Building tax policies to support sustainable business development

DNHN - Prime Minister Phạm Minh Chính has recently directed the Ministry of Finance to research suitable policies and called on local authorities to address the challenges faced by businesses.

Tax policies supporting small and medium enterprises

According to the Prime Minister's directives, the Ministry of Finance should focus on researching tax policies to support sustainable business development, especially for small and medium enterprises (SMEs). This encompasses not only tax reductions but also policies for extending tax payment deadlines and efficiently processing value-added tax refunds. SMEs often face financial difficulties, and reducing their tax burden will provide them with additional resources to invest in growth.

Furthermore, the Prime Minister emphasized the importance of policies encouraging large enterprises to support SMEs. This cooperation will help create domestic value chains and develop the country's supporting industries, thus enhancing the competitiveness of the economy.

The government requires ministries, sectors, and localities to concentrate on developing and implementing policies that create a favorable environment for business growth. This includes reducing administrative procedures, minimizing unnecessary permits, and helping businesses save compliance costs. Such reforms will not only facilitate businesses but also promote a healthy competitive environment among domestic and international enterprises.

Importantly, support policies must be practical and effective, creating opportunities for businesses to compete in the market. The government also stressed the significance of decentralization and empowering agencies with greater responsibility in supporting businesses.

Public-private partnership and green economic transition

One of the government's crucial objectives is transitioning the economy towards a sustainable development model, in which public-private partnerships will play a vital role. The government demands ministries to research groundbreaking initiatives for green economic development. This includes developing renewable energy, establishing green service industrial clusters, and producing green hydrogen and ammonia.

Developing renewable energy not only helps Vietnam mitigate the impacts of climate change but also creates new job opportunities and attracts investment from green financial sources. This strategy benefits businesses and contributes to environmental protection and sustainable national development.

Moreover, to improve competitiveness, the Prime Minister urged the Ministry of Planning and Investment to research and perfect policies for enterprise development, particularly in encouraging innovation. Enterprises should be encouraged to leverage their intrinsic strengths, significantly contributing to the economy's growth.

Meanwhile, the Ministry of Information and Communications needs to promptly finalize digital transformation regulations to help businesses access new technologies and improve production processes. Applying information technology not only enhances production efficiency but also opens up international market access opportunities for businesses.

The State Bank of Vietnam also plays a crucial role in supporting businesses through credit policies. The Prime Minister instructed the State Bank to direct credit institutions to reduce costs, enhance IT applications, and lower lending rates. This will create favorable conditions for businesses, especially in manufacturing and commercial sectors, helping them overcome challenges and grow.

Additionally, the implementation of a VND 140 trillion credit package for social housing and preferential credit programs for priority sectors like forestry and aquaculture is also emphasized to boost economic momentum.

The role of local authorities in supporting businesses

The government has highlighted the importance of proactive and positive engagement by local authorities in listening to and supporting businesses. Local governments should organize regular meetings with businesses, especially SMEs. These meetings provide opportunities for businesses to share the difficulties and challenges they are facing and help authorities gain a clearer understanding of local production and business activities. This, in turn, allows local governments to gather critical information and data to propose appropriate, timely policies and solutions, facilitating business growth.

Listening to and supporting businesses is not merely a responsibility but also an opportunity for local governments to demonstrate their role in economic development. When local authorities actively intervene and offer support to businesses, particularly in areas such as finance, legal matters, and land procedures, it helps minimize barriers, enhancing business efficiency. Simultaneously, it contributes to creating a favorable business environment, encouraging businesses to expand production, invest, and develop sustainably. Strong business growth generates employment and income for workers and stimulates overall growth for the local and national economy.

Thus, tax policies and support measures are being rapidly implemented to create a favorable and sustainable business environment. These efforts not only help SMEs overcome challenges but also drive robust economic development in the coming years. With appropriate guidance and effective strategies, Vietnam can build a sustainable economy that meets the demands of both domestic and international markets.

Phan Chinh